Performance Management

performance management system presentation

Ivan Andreev

Demand Generation & Capture Strategist, Valamis

March 14, 2022 · updated April 2, 2024

17 minute read

Increasingly, organizations are understanding that their management systems must be brought into the 21st century if they are going to be competitive in the current market.

Research shows that previous systems, such as yearly appraisals, are outdated and can even serve to decrease employee engagement and motivation. In light of this, more companies are turning to performance management than ever before.

This dynamic and strategic approach to developing improved performance in employees is gaining ground in companies large and small, including many Fortune 500 and industry-leading organizations.

What is performance management?

The importance of performance management, the purpose and goals of performance management, the benefits of performance management, 15 employee performance management best practices, 5 real-world examples of performance management, what is the difference between performance management and performance appraisals.

Performance management is a strategic approach to creating and sustaining improved performance in employees, leading to an increase in the effectiveness of companies.

By focusing on the development of employees and the alignment of company goals with team and individual goals, managers can create a work environment that enables both employees and companies to thrive.

Based on the definition of performance management, a system is built within an organization to measure and improve the performance of the people in that organization.

In practice, performance management means that management is consistently working to develop their employees, establish clear goals, and offer consistent feedback throughout the year.

In contrast to other systems of reviewing employee performance, such as yearly performance appraisals , employee performance management is a much more dynamic and involved process with better outcomes.

For the Human Resources department, performance management is an important system for onboarding , developing and retaining employees, as well as reviewing their performance.

It is increasingly understood that a yearly performance appraisal system does not effectively engage employees, fails to consistently set and meet company objectives, and does not result in a strong understanding of employee performance.

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Why is performance management important?

In any organization, no matter the size, it is important to understand what your employees are doing, how they are doing it, and why they are doing it.

Without a system in place to define roles, understand individual strengths and weaknesses, provide constructive feedback , trigger interventions and reward positive behavior, it is much more difficult for managers to effectively lead their employees.

Smart organizations pair their performance management with an incentive management process. The two systems have a lot in common, from defining roles and setting goals to reviewing and rewarding employee behavior, and as such, do very well when run simultaneously. Using incentive management also means that the all-important ‘reward’ step of performance management is done properly.

Talent management is an important part of every organization. Three of the main problems that organizations face are:

  • keeping employees engaged
  • retaining talent
  • developing leaders from within

These are the issues that performance management very effectively targets.

1. Keeping employees engaged

Engagement of employees is a focus of any management team. In a yearly appraisal system, goals would be given at the beginning of the year and then revisited 12 months later to see if they had been met. This long stretch of time without feedback or check-in is an almost certain engagement killer.

In fact, 94% of employees would prefer their manager gives them feedback and development opportunities in real-time, and 81% would prefer at least quarterly check-ins with their manager, according to the Growth Divide Study .

The graph displays the difference between traditional performance management vs everyday performance management. The difference is 3-5% vs 39% impact on the performance.

Studies show that employees do best with feedback on a monthly or quarterly basis, with regular check-ins serving as a zone to problem solve, adjust goals as necessary, and to refresh their focus on the goal. In fact, companies where employees meet to review goals quarterly or more frequently are almost 50% more likely to have above-average financial performance.

When surveyed, employees had some negative feelings about a yearly appraisal system:

  • 62% of employees feel that their performance review was incomplete
  • 48% did not feel comfortable raising issues with their manager in between performance reviews
  • 61% feel that the process is outdated
  • 74% feel that they would be more effective with more frequent feedback
  • 68% of executives don’t learn about employee concerns until the performance review

All of this adds up to a lot of missed opportunities to solve problems and increase employee performance and engagement.

As employee engagement rises, nine key performance indicators show successful outcomes. Absenteeism, turnover, shrinkage, safety incidents, patient safety incidents and defects in quality are lessened by at least 25%, and often more, across the board. Customer experience, productivity and profitability all show positive outcomes.

This study, by Gallup , was conducted across a broad range of industries, showing that employee engagement is a critical factor, no matter the industry.

the graph displays how employee engagement affects key performance indicators (KPI's). Negative and positive effects.

2. Retaining talent

Employees who have frequent meetings with management to discuss performance, solve problems and receive training are more likely to stay with the company.

If employees see that their management team is putting in the work to develop them professionally, help them succeed with their goals, and reward performance on a consistent basis, then they are more incentivized to both stay with the company and work harder.

3. Developing leaders from within

This consistent development and partnership between managers and employees allow for the development of leaders from within the company.

Recruiting costs can be extremely high, as are costs for onboarding and training new employees. To be able to groom leaders from within the company means that there is already a proven culture fit with this individual and that training costs and resources spent developing this person into an asset are not lost.

This leadership path also serves as a motivating force for employees, who can see that their hard work will be rewarded with promotions and other benefits.

Performance management also creates a need for management to consistently focus on company objectives and goals, and to consider how best to achieve them. This continual revisiting of goals means that they are more likely to stay relevant, as goals will be adjusted in light of new technology, changes in the market, or other factors throughout the year.

According to Forbes , ‘companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, and those who do it monthly get even better results.’

The purpose of performance management is to give both managers and employees a clear and consistent system within which to work that, in turn, will lead to increased productivity.

  • This system shows employees the pathway to success, allows for the measuring of performance coupled with feedback and offers training and development opportunities.
  • Performance management allows management to understand what their employees are doing and track progress on company objectives while providing consistent feedback.

There are five main objectives of performance management:

  • Develop clear role definitions, expectations and goals
  • Increase employee engagement
  • Develop managerial leadership and coaching skills
  • Boost productivity through improved performance
  • Develop a performance reward program that incentivizes accomplishment

These performance management goals show a clear path from the developing of goals to the rewarding of increased accomplishment. If one of these performance management objectives is not done well, then the others will suffer as a result.

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Performance management has a multitude of benefits for employees and managers, as well as for the company as a whole. If a company can successfully create an environment of engagement where customers are equally engaged by employees on the front line, their outcome is even better.

240% boost in performance-related business outcomes.

When organizations successfully engage their customers and their employees, they experience a 240% boost in performance-related business outcomes compared with an organization with neither engaged employees nor engaged customers. – Gallup
  • Having well-defined roles and performance standards makes hiring an easier process, as candidates know what is expected of them, and HR can more easily understand if a candidate is a right fit for the role.
  • Those well-defined roles and standards make training easier, as trainers know exactly which areas need to be covered, and which information is nonessential.
  • Consistent developing and revisiting of goals ensure that the organization keeps up with changing market forces easily, and reacts quickly as a whole, regardless of the size of the organization.
  • Clear expectations and roles set employees up for achieving goals from the start, providing a springboard to success.
  • Employees who feel that their company is invested in their success stay with their companies, increasing employee retention.
  • Consistent feedback and coaching from managers lead directly to increased engagement from employees while developing the ability to provide good coaching and feedback leads to more skilled managers.
  • As employees become more skilled, they can move up through the company, creating a leadership pipeline.
  • Productivity will increase thanks to increased engagement, clear goals and upskilling of employees.
  • Employees remain incentivized to perform long-term, as they are properly rewarded for their hard work.

Employee performance management best practices

While performance management can sound deceptively simple, with just four steps as outlined above, the process itself is very complicated. That’s why we have put together this list of best practices for performance management.

Think of it like the essentials of performance management – these will help make sure that your employee performance management system is performing the way it should.

1. Identify the goals of your performance management initiatives

As you are creating your performance management program, you need to understand what you want to accomplish.

Asking the following questions can help you:

  • Is increased productivity a priority?
  • Does your organization want to identify leaders from within and develop them?
  • Do you want to streamline the compensation process?
  • Are you seeking to improve employee retention or engagement?

If you know what you want your program to do, it will be easier to build it to accomplish that goal.

2. Define and describe each role

We mentioned this above, but it bears repeating. It is much harder for an employee to be successful if they don’t know exactly what is expected from them, how they should do it, and what the end result should look like.

3. Pair goals with a performance plan

As you set goals, develop a performance plan to go alongside. Year-long goals often fail, as they are too large and employees can get overwhelmed before they start. A performance plan helps them visualize their path, making it much more likely that they will meet their goal.

4. Monitor progress towards performance targets

Review key areas of performance. Use metrics and analytics to your advantage, tracking how goals are progressing to make sure that interventions can happen early, if necessary.

5. Coaching should be frequent

The point of coaching is to help identify and solve problems before they get too big. If it’s not frequent, it’s not going to help at all. Monthly or quarterly meetings should be held to help keep employees on the right track.

6. Use guidelines to your advantage

Guidelines should be created for each role as part of the first stage of the performance management cycle. These policies or guidelines should stipulate specific areas for, or limits on, opportunity, search and experimentation. Employees do their jobs better when they have solid guidelines to follow.

7. Build a performance-aligned culture

Make sure your workplace has shared values and cultural alignment. A sense of shared values, beliefs and expectations among employees creates a more harmonious and pleasant workplace. Employees should be committed to the values and objectives outlined, and exemplified by, top management.

8. Organize cross-functional workshops

This helps employees – and managers – understand what other departments do, how they think and what their strengths and weaknesses are. They can discover something new and find new connections, which can help them in future work.

9. Management should offer actionable feedback

During these coaching meetings, tensions can arise if the feedback is not given in a constructive, actionable manner. It is not very important to look backward and point fingers, rather management should guide employees towards future success.

10. Keep it professional, not personal

Giving less-than-stellar feedback is hard on both managers and employees, it’s one of the reasons that performance appraisals tend to be a least-liked task. Managers should make sure to keep feedback professional and remember to focus on behavior, rather than characteristics.

For example, pointing out that David regularly turned in important reports late is feedback about a behavior. Saying that David is lazy, and that’s why the reports were often late is feedback about a characteristic. One of these can help an employee own their role in a project’s success (or lack thereof) and the other will make them defensive instantly.

11. It’s not only employees that need training

Management should be trained too. Coaching and offering good feedback are not easy jobs, which is why there are so many specialist coaches out there. For managers to be able to lead well, they should be trained in these skill sets.

12. Take advantage of multiple-source feedback

Ask employees to write feedback for each other. This will give management a more holistic view on employee performance, understand the challenges that teams are facing, and be able to better offer feedback.

13. Don’t depend only on reviews

While the review process is important, it is only one part of the system as a whole. Planning, coaching, and rewarding employees are equally key parts of the system.

14. Problems are not always employee-based

It can be easy to assume that problems are always caused by employees, but that simply is not the case. Problems can arise from external factors such as availability of supplies, internal processes that are causing issues, or organizational policies. Seek out the source of problems as precisely as you can in order to fix them.

15. Recognize and reward performance publicly and frequently

Management cannot expect employees to stay motivated if they are never rewarded, yet many companies overlook this key step. Make sure that employees are compensated and recognized for their hard work, and they will continue delivering for your organization.

Of course, it’s one thing to understand the theory of what performance management is, but it’s another thing to use it in a real company. Let’s take a look at some real-world examples of the performance management process in action:

Google logo

It’s no surprise that Google would show up on a list of companies that use a newer, innovative system of management. This company has always been a trendsetter, and their performance management process is one that relies on data and analysis, as well as making sure that their managers are well trained.

When assessing their performance management system, Google launched a project dedicated to assessing their managers, which has led to a thorough training and future development process that sets managers, and thus employees, up for success.

They also use a system of setting goals that have caught on across multiple industries. Using their Objectives and Key Results (OKRs) system, they reframe the goal-setting process, with great results.

Facebook logo

Another tech trendsetter, Facebook has a performance management process that puts a heavy emphasis on peer-to-peer feedback. In semi-annual reviews, they are able to use that feedback to see how well teams are performing and understand where collaboration is happening – and where it is not. They also have developed an internal software to provide continuous, real-time feedback. This helps employees solve issues before they become problems.

Cargill logo

Cargill is a Minnesota-based food-producer and distributor with over 150,000 employees and serves to demonstrate that even huge companies can ditch unwieldy performance appraisals and institute a new system. In following the latest research on the dissatisfaction of management with outdated performance management process, Cargill created their ‘Everyday Performance Management’ system. The system is designed to be continuous, centered around a positive employee-manager relationship, with daily activity and feedback being incorporated into conversations that solve problems rather than rehash past actions.

The Everyday Performance Management system had overwhelmingly positive results, with 69% of employees stating that they received feedback that was useful for their professional development, and 70% reporting that they felt valued as a result of the continuous performance discussions with their manager.

Adobe logo

Adobe calculated that managers were spending about 80,000 hours a year on performance reviews, only to have employees report that they left those reviews demoralized and turnover was increasing as a result.

Seeing a system that only produced negatives, Adobe’s leadership team made a bold leap into a performance management system that began by training managers how to perform more frequent check-ins and offer actionable guidance, then the company gave managers the leeway they needed to effectively lead.

Management was given much more freedom in how they structured their check-ins and employee review sessions, as well as more discretion in salaries and promotions. Employees are often contacted for ‘pulse surveys’ – a way for the leadership team to make sure that individual managers are leading their teams well. One of the many positive results of this has been a 30% cut involuntary turnover due to a frequent check-in program.

Accenture logo

Accenture is a massive company – over 330,000 people, so changing their systems means a huge effort. When they switched to their new system, they got rid of about 90% of the previous process. Now, they are using a more fluid performance management process where employees receive ongoing, timely feedback from management. This has been paired with a renewed focus on immediate employee development and an internal app for communicating feedback.

There are common threads in all of these examples. Each company has built a system that works for them, rather than following a one-size-fits-all approach. What works for one company might not work for another – it depends on the industry, the speed and flexibility of the company, and the overall goal of the system itself.

With similar names and purposes that sometimes align, it is no surprise that some people find it hard to spot the difference between performance management and performance appraisals.

In fact, performance appraisals are often part of the performance management process , although some companies still rely on performance appraisals alone.

An easy way to understand the difference between the two is that performance appraisals are reactive, and performance management is proactive.

A performance appraisal looks at all of the past actions of the employee within a set amount of time , and rates how well they performed in their role and how many goals they met.

Performance management looks at the present and future of the employee, and what can be done to help future performance and meet future goals . Performance management is focused on the development and training of an employee, and how that can benefit both the employee and the company.

A performance appraisal is a formal, operational task, done according to rigid parameters and in a quantitative manner. HR leads performance appraisals, with input from management. Performance management is much more informal and strategic, led by management with input from the employees in a more flexible manner.

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Performance Management System Presentation Templates

Implementing an effective performance management system is crucial for organizations aiming to enhance employee productivity, engagement, and development. Whether presenting to HR professionals, managers, or executive leadership, a well-structured presentation is essential for communicating the objectives, components, and benefits of the performance management system.

Prezent's Performance Management System Presentation Template offers a comprehensive framework to outline key elements such as goal setting, performance evaluation criteria, feedback mechanisms, and employee development plans. With professionally designed slides, focus can be directed towards explaining the performance appraisal process, highlighting best practices for performance coaching, and showcasing tools or technology used for performance tracking. Whether implementing a new performance management system or improving an existing one, this template empowers with actionable insights and facilitates informed decision-making to drive employee performance and organizational success.

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Alignment with Organizational Goals

Highlight how the performance management system aligns with organizational goals and objectives, ensuring that employee performance is directly linked to achieving the company's mission and vision.

Clarity in Expectations

Emphasize the importance of clear expectations and performance standards within the system, ensuring that employees understand what is expected of them and how their performance will be evaluated.

Continuous Feedback Culture

Promote a culture of continuous feedback within the performance management system, encouraging regular check-ins between managers and employees to provide ongoing support, guidance, and recognition.

Data-Driven Decision-Making

Showcase how the performance management system leverages data and analytics to drive decision-making, identifying trends, patterns, and areas for improvement to inform strategic workforce planning and development initiatives.

Employee Development Opportunities

Highlight the role of the performance management system in identifying employee strengths and areas for development, providing opportunities for training, coaching, and career advancement to support professional growth and retention.

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Free Performance Management Presentation Template

Identify the target audience for the presentation, research on the current issues and opportunities in performance management, outline the main points to be covered in the presentation.

  • 1 Performance appraisal
  • 2 Setting SMART goals
  • 3 Employee feedback
  • 4 Recognition and rewards
  • 5 Performance improvement plans

Design the structure of the presentation template

  • 3 Problem-Solution
  • 4 Comparative
  • 5 Chronological

Identify relevant examples or case studies for the presentation

  • 1 Company X's performance management success
  • 2 Case study on employee goal-setting
  • 3 Example of effective feedback process
  • 4 Recognition program impact at Company Y
  • 5 Performance improvement plan case study

Create preliminary draft of the presentation template

Approval: supervisor review of the draft.

  • Create preliminary draft of the presentation template Will be submitted

Incorporate feedback and revise the preliminary draft

Select appropriate graphics and images to support the content of the presentation.

  • 1 Charts and Graphs
  • 2 Infographics
  • 3 Icons and Illustrations
  • 4 Photographs
  • 5 Animations

Create a visually appealing and informative PowerPoint slide design

Review and proofread the content of the slides.

  • 1 Check for spelling errors
  • 2 Verify content accuracy
  • 3 Ensure slide order is logical
  • 4 Review slide transitions
  • 5 Check consistency in font and style

Test the template by performing a mock presentation

Approval: team review of the mock presentation.

  • Test the template by performing a mock presentation Will be submitted

Finalize the presentation template based on feedback received

Prepare handouts or supplementary materials if necessary.

  • 2 Resource Guides
  • 3 Checklists
  • 4 Case Studies
  • 5 Templates

Approval: Manager Final Review of the template

  • Finalize the presentation template based on feedback received Will be submitted

Create final version of the template after approval

Prepare guidelines on how to use the template, secure necessary copyrights or permissions for the template, share the final performance management presentation template, take control of your workflows today., more templates like this.

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PERFORMANCE MANAGEMENT Presentation

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Without a doubt in today's modern world, the competition between firms is getting tougher with each passing day; and thus, the means and methods employed in performance evaluation and management are becoming critically important. That is because the importance and impact of employees within the firm's mechanism as a result of current business dynamics have also exponentially increased. It is frequently observed that firms that are able to provide positive and fair conditions, improvement opportunities, compensations for their employees are much more likely to achieve better success. However, knowing that in today's economy resources are scarce, and implementing this well-known reality, to above mentioned concepts; it is obviously important to decide on the methods to efficiently increase the performance of employees and to determine the employees to invest in for the future. That's where and why creating and maintaining an effective performance management system have become key.

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Performance management aims at improving individual, departmental, and overall organizational performance by helping align individual and departmental goals with the overall goals and mission of the organization. It helps in setting specific employee performance goals, clarifying expected performance standards/results/levels of outputs, enhancing commitment to these performance goals and expectations, and encouraging coaching, mentoring, and feedback processes.

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Performance appraisal and performance management were one of the emerging issues since last decade. Many organizations have shifted from employee's performance appraisal system to employee's performance management system. This paper has focused to study the evolution of employee's performance appraisal system, critics the system suffered and how the performance management system came to the practice. The main purpose of this paper is to differentiate these two systems, employee's performance appraisal and management system. This paper uses a review of the literature to evaluate the development of appraisal system and argues the critic areas of appraisal system. The review identified as advancement in the management field and growing complexity in corporate sectors demand more capable HR, so mare appraisal of employee's performance is not sufficient. Employee's contribution should be aligned with organizational objectives and strategy. Performance management eliminates the shortcomings of performance appraisal system to the some extent.

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  • Best Performance Management Software

If you want to keep your finger on your workforce’s pulse so you can measure employee productivity, satisfaction, and engagement, you need performance management software. This cloud-based business software tool helps businesses gather employee feedback, keep an eye on productivity trends, set goals, and ensure each employee can reach their full potential within the company.

Performance management software comes in all shapes and sizes, from standalone performance management tools for small businesses to modular elements of larger, sprawling human capital management (HCM) solutions. Not sure how to find the right performance tracker for your workforce’s needs, no less your company’s budget? Below, we review the best performance management software, ranging from BambooHR to ActivTrak and everything in between.

Table of Contents

BambooHR  »

BambooHR

Exceptionally user-friendly interface

Comprehensive HRIS system with payroll and benefits administration

Emphasis on creating enriching company cultures and good employee experiences

Limited payroll features compared to some other HRIS systems

Limited scalability (two plans only)

BambooHR is a comprehensive human resources information system (HRIS) that merges performance management software with time tracking, hiring, onboarding, and thorough HR reporting. Businesses can also add built-in payroll and benefits administration to handle every aspect of the employee experience within BambooHR’s streamlined system.

While BambooHR benefits employers and employees alike, its focus on the employee experience makes it a solid choice for companies concerned about creating a workplace their employees genuinely love. BambooHR’s employee sentiment and feedback tools are easy for employees to use, as is the program’s native employee communication tool.

If your employees and managers want to leave feedback or fill out surveys on the go, BambooHR’s mobile app makes it easy to do. The app has a low learning curve and intuitive interface, and iOS and Android users rate it highly: It scores 4.7 out of 5 on the App Store and 4.8 out of 5 on Google Play.

Workday

Comprehensive HCM software

Intuitive, user-friendly interface and app

Skill assessments to build employee careers

Enterprise-level software can take a while to deploy

No transparent online pricing

Workday is an enterprise-level human capital management (HCM) solution, which makes it best suited to global corporations with the budget for in-depth employee management software. Like BambooHR, Workday HCM bundles payroll, benefits administration, time tracking , talent management, and HR data and analytics within the same system, allowing companies to track employee performance from recruiting to onboarding, employee evaluations, and beyond.

Workday’s performance management solution includes a skills-based module called Workday Skills Cloud. You can gain unique insights into your workforce’s current skill set, identify gaps, and give employees the tools they need to progress along their chosen career paths.

Workday is an out-of-the-box solution with limited customizations. On the one hand, this means Workday may have a lower learning curve for both employees and managers compared to more in-depth, fully customizable solutions like NetSuite. However, if you’re looking for a fully customizable HR platform, you’ll want to look elsewhere.

Lattice

Fully featured people management software

Transparent pricing listed online

Straightforward modular software system

Customer complaints of complicated interface

Limited built-in integrations

Lattice’s transparency and comprehensive features set it apart as a top performance management software choice for small and midsize businesses.

As a truly all-in-one performance management solution, Lattice’s base package includes comprehensive performance management tools, from support for 1:1s to fully customizable review cycles, as well as tools for goal setting (including objectives and key results, or OKRs). Companies can add more expansive feature sets for an extra fee – and unlike most of its competitors, Lattice lists its prices upfront.

For instance, a foundational performance management, goal setting, and OKR package costs $11 per employee per month. You can add employee engagement features for an extra $4 per person per month, compensation tools for $6 per person per month, and growth- and development-focused tools for $4 per person per month. If you need only goal-setting features or performance management tools rather than both of them together, you can opt for one or the other at $8 per person per month.

PerformYard  »

Fully featured performance management solution

High degree of customization

Straightforward, transparent pricing

Fewer built-in integrations than some competitors

No mobile app

Instead of rigidly prescribing which performance management processes your business should follow, PerformYard’s software lets you choose from options like quarterly reviews, semi-annual reviews, annual reviews, project-based reviews, competency reviews, 360 reviews, and continuous feedback.

Plus, PerformYard’s comprehensive automations and simple workflows ensure you aren’t working against the software to make it do what you want. Instead, you can use it as an intuitive tool to bring your review cycle vision to life.

Additionally, PerformYard doesn’t charge extra for top-tier customer service. Every customer gets a dedicated representative and unlimited access to expert support. Your dedicated representative talks you through setup and ensures the software perfectly mirrors your company’s performance management processes.

Trakstar  »

 Trakstar

Competitive benchmarking

Easy-to-read, ready-to-present reports

Straightforward SMART goal templates

Modular software includes LMS, ATS, and advanced reporting tools

Limited customizability

Getting all of your employees and managers on the same page is tricky enough when you’re all working in the same office building. It’s much harder when you’re managing a remote workforce spread across multiple states (or even continents). Fortunately, Trakstar’s performance management software helps every member of your team align their personal and career goals with the company’s larger trajectory – no matter where in the world they’re located.

With Trakstar’s SMART goal templates, employees are empowered to set actionable, achievable goals. Goal-setting and performance reviews can start as soon as a new employee is hired: You’ll receive automated reminders for reviews at the 60-, 90-, and 180-day anniversaries. Plus, Trakstar’s benchmarking tool lets you assess your workforce’s skills and identify opportunities to increase employee engagement while reducing attrition.

As a modular software program, Trakstar offers four main services: Trakstar Perform (performance management), Trakstar Learn (learning management), Trakstar Hire (applicant tracking), and Trakstar Insights (advanced data and analytics). While customers can choose to use Trakstar’s standalone modules, you’ll get the most value from Trakstar by bundling all four services together.

ActivTrak  »

Free trial and free-for-life plan (up to three users)

Transparent, upfront pricing

Real-time employee insights

Employees might be hesitant about in-depth monitoring

Limited performance management features

Add-on fees can add up fast

If you manage a fully remote team, it can be hard to gather quantitative data on how your employees manage their time. As a result, you might struggle to set productivity goals, evaluate employee performance come review time, or identify a burned-out employee before they crash.

ActivTrak uses active employee data monitoring to help you solve these types of problems. The software offers an in-depth look at what your employees do on their company devices. Once you have the data, you can generate personnel and productivity reports and use ActivTrak’s top performance tracking solution to set achievable team goals and benchmarks.

While ActivTrak does work as a solid performance management tool, especially when it comes to quantitative goal setting, it offers more employee monitoring tools than performance management tools. If you’re looking for a more robust solution (albeit one that lacks real-time employee monitoring), you’ll be better off with a competitor like BambooHR or Workday.

On the other hand, if real-time employee data tracking is a top priority for you – especially when it comes to effective employee goal setting – ActivTrak likely has the features you need.

What Is Performance Management Software and How Does it Work?

Performance management software is a (usually cloud-based) software tool that helps employers measure and respond to employee performance. Using the software, you can track your employees’ engagement, observe workforce trends, directly ask for employee feedback, and schedule review cycles that help you assess where an employee is at and how they want to grow from here.

How Much Does Performance Management Software Cost?

Most performance management software companies charge a monthly per-employee fee, so your software costs vary depending on how many employees you have. Many of the top performance management software tools are modular: Expect to incur an extra per-employee fee for any features you add on that don’t come with the base package.

Unfortunately, performance management software companies usually don’t list their prices online. Customers are instead required to call and request a custom quote.

Features To Consider When Buying Performance Management Software

When weighing your performance management software options, we recommend assessing each program’s strengths and weaknesses in the following areas.

If your performance management software doesn’t sync with your payroll , ATS , and other HR-centric software, you’ll waste valuable time comparing employee data across systems to manually verify their accuracy. You’ll also have a harder time ensuring each software tool reflects the most recent employee data.

Instead, find performance management software that integrates natively with the software your company already relies on.

Every new software system has its own learning curve, but software with an intuitive dashboard and user-friendly interface can shorten the time it takes to bring your HR team up to speed. Whether you can test the software yourself or access the interface only via a live demo with a company sales rep, pay particular attention to how easy the software is to navigate.

Not all performance management systems include real-time performance tracking features. If you want to monitor employees and gain insights on their productivity and performance, prioritize software like Trakstar which comes with built-in performance tracking. Alternatively, you can consider a workforce analytics software solution like ActivTrak that integrates with your performance management tool.

If you want performance management that goes beyond typical performance management to increase employee engagement, hone in on software with built-in feedback and goal-setting tools. Some providers offer these features upfront while others make them available as add-ons only, which typically means you’ll pay an additional fee.

With a solid reporting tool, your performance management software is more useful. Carefully consider which reports your preferred software includes with each package. Are they easy to read and decipher? Can they be configured to your exact specifications, or are they available as out-of-the-box templates only?

Whichever software tool you end up choosing, make sure it generates accurate, useful reports – or else you’ll have spent a lot of money on software that doesn’t produce useful results.

How To Choose the Best Performance Management Software

The first step in choosing the best performance management software is to read reviews to get a good sense of the best options in today’s market. From there, take the following steps:

  • Research . Check out verified ratings on sites like G2 and TrustRadius to identify users’ most common complaints about the software. Pay particular attention to whether the software provider interacts with customer complaints – this can give you a good sense of how responsive the customer service team is.
  • List mandatory features . Eliminate any providers on your list of potential solutions that lack those essential features.
  • Review integration options. Check that the providers on your list integrate with your existing software systems, including your payroll provider and any other HR tools your business relies on. Cut out any performance management tools that won’t sync with current software.
  • Evaluate current and future needs. Are you looking for modular software that scales with you as you ramp up hiring activities? Or are you comfortable starting out with a small-business solution and scaling up to a more comprehensive tool like Workday a few years down the road?
  • Request a quote and demo. For the most part, performance management companies don’t list their prices online, so secure quotes from at least two providers to get a sense of fair market price.
  • Create a list of questions. Along with asking pointed questions about how the software will help your business meet its specific personnel goals, ask about any pain points you found repeated by multiple customers during your online research. Does the company have a plan in place to address these concerns? 

Finally, never sign up for a product at the end of your first live demo. Instead, thank your sales rep for their time and tell them you’re excited to get back in touch with them. Find out if you can try a version of the software before signing up. Taking the software out for a spin can ensure that you’ve settled on the right performance management solution.

Alternatives to Performance Management Software

If you’re part of a small business with fewer than 50 employees, you might prefer standalone performance management software that syncs with your existing HR and payroll tools. But once your business is big enough to require a full suite of HR management tools, you might consider scaling up to either a human resources information system (HRIS) or human capital management (HCM) solution.

HCM solutions are more comprehensive than HRIS systems, but the two terms are often used interchangeably. Speaking broadly, though, HRIS and HCM systems are all-in-one HR platforms from which you can manage any data connected to the employee lifecycle, from applicant tracking and hiring to payroll, performance management, and legally compliant offboarding. These types of HR systems are usually modular and sold at custom prices only.

Depending on the HRIS or HCM provider you select, you can pick and choose which tools your business wants (including performance management tools) and create your ideal HR platform from there.

The Bottom Line

In the end, the best performance management software is the one with the right price and features for your unique establishment. While reviews and lists are useful in pointing you toward top software options, getting your own firsthand experience with the software is the best way to determine whether or not it will work for you.

Some enterprise-level performance management solutions require you to sign a long-term contract, but many tools allow you to pay month to month. If you aren’t sold on a particular system, steer clear of signing a contract and simply try the product on for size for a few months (ideally, long enough to complete one review cycle). From there, you can decide if you want to move forward with this particular software, or if you need to start searching for a better performance management tool that will truly help your employees succeed.

How We Chose the Best Performance Management Software

To choose the best performance management software for this piece, our reviewer sorted through more than 20 of the most popular performance management tools for businesses of all sizes. She then looked at product specs, consulted verified user reviews, and tested the software whenever possible to trim that list from to the top six products.

Our top criteria for evaluating software include pricing, features, user-friendliness, compatibility with other business software tools, customer service, and – most importantly – our own first-hand experience with the product.

WHY SHOULD YOU TRUST US?

Kylie McQuarrie, the author of this article, has spent most of her decade-long career reviewing and writing about business software products. As the lead payroll, accounting, and HR writer for TechRepublic and Business.org, she led initiatives to prioritize hands-on software testing on a company-wide basis. For Kylie, the best software services are also the most accessible; she strongly recommends doing your own research and testing software yourself instead of relying on a sales pitch in a live demo.

Performance management software can be scalable, but the exact degree of scalability depends on which performance management solution you choose. Most performance management providers offer custom plans with custom features and pricing, so businesses can add more extensive HR features (such as talent acquisition and learning management systems) as they grow.

Yes, performance management software is an ideal tool to help people managers identify employee development needs. However, not all performance management software offers truly comprehensive employee development tools. Before deciding on a performance management provider, run through its list of features to ensure your chosen provider can support your employees’ development.

Yes, your performance management software should integrate with other HR systems, especially payroll software and application tracking systems (ATS).

Some performance management companies, including BambooHR and Namely, offer built-in payroll, time-tracking, and ATS software add-ons. These solutions allow you to tackle all your HR tasks on one platform. Other performance management systems, such as Leapsome and Trakstar, integrate with third-party payroll providers instead of offering these features themselves.

Yes, performance management software is secure as long as you use it correctly and choose a software provider with a proven record of software security. Since the software is used to handle sensitive data, your performance management provider should describe in detail how its data centers are secured. It should also state upfront that it uses data encryption, requires native multi-factor authentication, and works with third parties to ensure data is secure against attack.

About Our Team

Kylie McQuarrie

Kylie McQuarrie

Contributor

Jana Lynch

U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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Performance Management System

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Performance Management System

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DoD Lead Agent: Office of the Assistant Secretary of the Army (Installations and Environment) Department of Defense Voluntary Protection Programs Center.

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Performance Management Diagram PowerPoint Template

Download our featured Performance Management Diagram PowerPoint Template to present the steps of effective performance management for implementing the innovation strategy in the organization. Performance management is a technical term representing a standard protocol of performance monitoring and setting targets to promote output. In other words, organizations can achieve their goals more easily by managing how their employees work, carefully monitoring their activities, and providing regular feedback on improvement. This concept is closely related to innovation, i.e., the innovation process becomes successful with a strong performance management strategy. We have designed a cyclic diagram to present the four performance management steps. Users can conveniently edit and use this PPT template for their professional presentations. 

The Performance Management Diagram PowerPoint Template shows a cyclic diagram with four curved arrows. Each of the arrows indicates the steps of performance management that are:

We have provided editable text boxes with each arrow to mention relevant points for presentation. Users can change the colors, font styles, and other features according to their requirements. The second slide of the template has four text boxes with distinct colors carrying placeholder text boxes to mention the details of the steps. Likewise, the next slide has four circles arranged in a square form with infographic icons. This diagram represents how teams and individuals collectively play a role in the objectives and goals of the organization. Professionals can choose from the slides and prepare their management presentations in a go. The diagram slides can be edited using all PowerPoint versions. So, download and try it now!

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Presenting best performance management system powerpoint slides. This is a best performance management system powerpoint slides. This is a six stage process. The stages in this process are organizational structure, skills and expertise, motivated teams, regular feedback, role clarity, inspired leadership.

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The image is of a PowerPoint slide titled "Best Performance Management System PowerPoint Slides," designed to discuss key elements of an effective performance management system. The slide is organized into five horizontal bars, each representing a different component, with corresponding icons that visually represent the concept of each element:

1. Organizational Structure: 

Suggests a focus on how a company is arranged to ensure efficiency and effectiveness.

2. Skills & Expertise: 

Emphasizes the importance of harnessing and developing the abilities and knowledge within the team.

3. Motivated Teams: 

Highlights the need for teams to be driven and enthusiastic about their work.

4. Regular Feedback: 

Points out that consistent, constructive feedback is crucial for continuous improvement.

5. Role Clarity: 

Underlines the importance of each team member understanding their specific responsibilities.

6. Inspired Leadership: 

Indicates the role of visionary leaders in guiding and influencing the team positively.

Each bar has a "Adapt it to your needs and capture your audience's attention" tag, indicating the slide is customizable.

Here are seven industries where such slides can be used:

1. Information Technology:

Use: Streamlining project management processes.

Presenter: IT Manager

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Audience: Medical staff, department coordinators

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Audience: Faculty, educational staff

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Use: Maximizing financial performance through team motivation and clear roles.

Presenter: Finance Director

Audience: Analysts, account managers

7. Hospitality:

Use: Delivering exceptional service through inspired leadership and staff feedback.

Presenter: Hotel General Manager

Audience: Service staff, department heads

Best performance management system powerpoint slides with all 5 slides:

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Ratings and Reviews

by Clair Gray

May 1, 2021

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