Heading into 2021 and coming up on nearly a full year of remote work, many companies are thinking about how they can keep productivity and employee morale high.

One way that businesses are addressing this challenge is by investing in new performance management software platforms.

The right performance management solution can help businesses engage with employees in a more continuous and dynamic way, which can create better alignment and more transparency.

As the need for performance management solutions has grown, there has been no shortage of well-funded start-ups who are ready to try and meet the market's needs.

However, a crowded marketplace can make it challenging on prospective buyers. So below is an overview of eight of the best modern Performance Management solutions for modern, mid-sized companies

Lattice

For those who want high user adoption

With a fresh $45M in venture funding, Lattice is continuing to execute on their mission of building a flexible, easy-to-use platform that can create high performing teams.

Lattice began as a goals & OKRs platform, but has quickly added functionality to support annual reviews, check-ins, engagement surveys and career pathing.

One of the great things about Lattice is their modern user interface which mirrors what we have come to expect from consumer-grade technology. And when employees are excited to use a tool like Lattice, companies can expect better data and better outcomes.

15Five

For those who want to empower their managers

15Five helped pioneer the continuous performance review model by building their platform on a simple, weekly pulse-check model. This simple, unobtrusive nudge asks employees to take a few minutes each week to reflect on how they're feeling at work, giving managers better data to understand their employees.

15Five has moved far beyond the check-in model and now supports full annual reviews, peer-to-peer recognition and engagement surveys. But the continuous updates that managers receive in 15Five is one of their strongest features

Culture Amp

For those who want to deeply understand their workforce

Culture Amp helped build the modern engagement survey industry. Their psychology-based survey tools can help companies ask the right questions, understand their employee's results and take action in a meaningful way. Although they started off focusing on employee engagement, Culture Amp acquired a performance management solution in 2019 and are starting to bring the two solutions together.

Kazoo

For those who want to build a truly differentiated employee experience

Many companies in this industry are actively developing new features to broaden their offering, while Kazoo can already offer a unified, full suite employee experience platform.

Rather than just being a platform that employees visit to complete performance reviews or surveys, Kazoo is designed to be the cultural hub of your company. This includes not just reviews and surveys, but also rewards, recognition, goals and a newsfeed.

Kazoo is also one of the most enterprise-grade solutions in this area and works closely with businesses during implementation to ensure that their employee engagement hub reflects their company

Bob

For those who want engagement built into their HRIS

Almost every major HRIS vendor now offers a performance management and employee engagement module. However, very few HRIS's can offer the modern, dynamic functionality that companies are looking for (which is why the performance management marketplace exists) That is, except for Bob.

Bob is a true HRIS with timekeeping, onboarding and benefits management capabilities. But Bob's HRIS was built with employee engagement and performance management tools at its core, while others make those tools ancillary add-ons.

Many of their peers can report on performance and engagement metrics, but Bob's HRIS capabilities allow them to also add absence, pay and benefits data into the picture too.

Betterworks

For those who are focused on business performance

Smart companies have always known that businesses perform their best when individuals are bought in and rowing in the same direction. The Objectives and Key Results (OKR) framework has been adopted at thousands of companies to help create greater alignment throughout the organization around strategic goals.

The person who developed the OKR framework sits on Betterworks' board, and all of Betterworks' performance and engagement functionality cascades down from those strategic business goals.

Companies that prioritize performance and alignment find no better partner than Betterworks for bringing those strategies to life.

7Geese

For those who want to create a goal-centric mindset

Similar to Betterworks, 7Geese has built their platform around company goals. This enables executives and business leaders to set the company's course, it creates a greater connection to the organization among employees and increases transparency throughout the org.

The 1-on-1 and performance review process becomes much more aligned when each individual knows what is expected of them and how that ties into the company's success.

Leapsome

For those who don't want to make trade-offs

Leapsome is an up-and-comer in the performance management space, but don't take that to mean the platform is lightweight.

Leapsome's performance management solution is configurable and structured enough to support large enterprise customers, and the breadth of their solution is what truly sets them apart.

In addition to their performance and engagement tools, Leapsome can now offer functionality to support onboarding, engagement surveys, career pathing and learning management.

FAQs

1. What is performance management software, and why is it essential for businesses?

Performance management software is a tool designed to help businesses manage employee performance, set goals, track progress, provide feedback, and facilitate communication between managers and employees. It's essential for businesses to ensure alignment, transparency, and productivity within their workforce.

2. What are some key features to look for in performance management software?

Key features to consider include goal setting and tracking, continuous feedback mechanisms, performance reviews, employee engagement surveys, career development tools, integration capabilities, user-friendly interface, and customization options to suit your company's unique needs.

3. How do Lattice, 15Five, Culture Amp, Kazoo, Bob, Betterworks, 7Geese, and Leapsome differ from each other?

Each performance management software platform offers unique features and strengths. Lattice focuses on user adoption with a modern interface; 15Five empowers managers with continuous performance insights; Culture Amp provides deep insights into workforce dynamics; Kazoo offers a comprehensive employee experience platform; Bob integrates engagement into HRIS seamlessly; Betterworks aligns individual performance with business objectives; 7Geese fosters a goal-centric mindset throughout the organization, and Leapsome provides a configurable solution with a breadth of features.

4. How can businesses decide which performance management software is best for them?

Businesses should consider their specific needs, such as company size, industry, goals, and existing systems. They should also evaluate each platform's features, pricing, user reviews, integration capabilities, and customer support to determine the best fit for their organization's requirements.

5. Are there any trends or emerging features in the performance management software industry?

Emerging trends include a shift towards continuous performance management, increased focus on employee engagement and development, integration with other HR systems, AI-driven insights and analytics, mobile accessibility, and customization options to tailor the software to individual company cultures and workflows.