Still tracking employee performance in spreadsheets? Over 70% of companies have upgraded to smarter Performance Management Systems that result in a 24% increase in productivity. Modern PMS tools offer real-time goal tracking, continuous feedback, and data-driven insights.

It’s time to level up; we have reviewed the 10 best performance management software for 2025 to help you choose the right one. From usability and dashboards to performance and pros/cons, we break it all down so you can decide faster and manage smarter.

What is Performance Management Software?

Performance management software is a digital tool designed to streamline and automate various aspects of employee performance management.

It facilitates goal setting, tracks progress, provides continuous feedback, conducts performance evaluations, and supports employee development.

By replacing manual processes with intuitive platforms, PMS reduces administrative burdens, minimizes errors, and provides actionable insights through data analytics.

Key features of an employee performance management system:

• Goal Management: Aligns individual and team goals with organizational objectives.
• Performance Reviews: Simplifies scheduling and conducting evaluations with customizable templates.
• Continuous Feedback: Enables real-time feedback between managers, peers, and employees.
• Analytics and Reporting: Offers data-driven insights to inform decision-making.
• Employee Development: Supports training, succession planning, and career growth.

10 Best Performance Management Software in 2025

Below are the top 10 PMS solutions for 2025, based on features, ease of use, integrations, and user feedback:

1. Lattice

Lattice is a modern performance management platform known for its OKR (Objectives and Key Results) and goal tracking to align individual and company objectives. 

It emphasizes continuous feedback, goal tracking, and performance reviews, making it ideal for organizations prioritizing a people-centric approach. Furthermore, it offers integration with HR tools like Slack, Workday, and BambooHR.

Key Features

• Performance Management
• Engagement
• Grow
• OKRs & Goals
• Feedback
• Lattice AI
• Talent Reviews
• Compensation
• Time Tracking
• Analytics
• Onboarding

Free Trial: Lattice did not offers a free trial

Pricing:

Lattice also provides add-ons such as $4 per month for Engagement or Grow and $6 per month for Compensation. 

Pros

Based on users' reviews, these are the advantages of using Lattice:

• Comprehensive Performance Tools: Lattice provides a suite of tools, including OKRs, 1:1 meetings, and real-time feedback.
• User-Friendly Interface: The platform is known for its user-friendly design. Hence, making it accessible for both managers and employees.
• Integration Capabilities: Lattice integrates seamlessly with tools like Slack and Workday, enhancing workflow efficiency.

Cons

As per the reviews highlighted by users, these are the drawbacks of Lattice:

• Limited Customization Options: Some users feel the platform has limited customization options. The workflow aspects may not be flexible enough for specific organizational needs.
• Cost Considerations: The per-employee pricing model can become expensive for larger organizations.

2. 15Five

15Five is a performance management solution that emphasizes continuous feedback and employee development. Its unique approach combines weekly check-ins with goal tracking and engagement tools, making it popular among remote and hybrid teams.

Furthermore, 15Five offers integration with various platforms such as BambooHR, Gusto, Namely, Rippling, etc.

Key Features

• Core Platform Features
• Performance Management
• Goal and OKR Tracking
• Employee Engagement
• Manager Enablement
• Compensation Management
• Analytics and Reporting
• 1-on-1 Meeting Agendas
• Recognition (High Fives)
• 360° Performance Reviews
• Pulse Ratings
• AI Manager Assistant/Copilot

Free Trial: 15Five offers a free trial for 14 days

Pricing:

Pros

Here are the pros of using 15Five as performance management software in your organization:

• Weekly Check-Ins: 15Five's structure encourages regular communication between employees and managers, promoting transparency.
• Employee Recognition: The "High Five" feature allows for peer-to-peer recognition, boosting morale.
• Goal Alignment: OKR tracking helps align individual objectives with company goals.

Cons

The following are the cons of using 15Five highlighted by users:

• Learning Curve: New users may require time to adapt to the platform's features and workflows.
• Limited Advanced Features: Its OKR and goal management features are limited in core plans, and training tools may not be as comprehensive as competitors.

3. BambooHR

BambooHR is a comprehensive HR recruitment software with robust performance management capabilities. It’s known for its all-in-one approach, combining employee data management, performance tracking, and HR operations. 

Furthermore, BambooHR offers 125 pre-built integrations with platforms like Greenhouse, Slack, NetSuite, Okta, Zapier, etc.

Key Features

• Performance Assessments
• Goal Tracking
• Employee Feedback
• Performance Reporting
• 1:1 Meetings
• Automation and Notifications
• Employee Engagement and Sentiment

Free Trial: BambooHR offers 7 days free trial

Pricing: BambooHR offers three plans i.e. Core, Pro, and Elite. However, the pricing of BambooHR is hidden in its official website. You need to contact there sales team for quote.

Pros

These are the pros of using BambooHR, as per the number of user reviews:

• User-Friendly Interface: BambooHR is known for its easy-to-use interface for HR and employees.
• Customization: The platform allows you to create workflows that are tailored to your organization's specific needs.
• Integration: BambooHR integrates with a variety of third-party applications.

Cons

The following are the cons of using BambooHR, as per users:

• Large Enterprise Features: Some functionalities may not be adequate for larger organizations' complex needs.
• Pricing Transparency: Pricing information is not readily available and requires direct contact with sales.

4. Culture Amp

Culture Amp is a people and culture platform that combines performance management with employee engagement tools. It’s designed to help organizations collect, understand, and act on employee feedback. 

Furthermore, Culture Amp offers integrations with platforms such as BambooHR, Workday, Rippling, SAP SuccessFactors, Namely, etc.

Key Features

• Engagement Surveys
• Performance Management
• Development Programs
• Goal Setting
• 1:1 Meetings
• Feedback Tools
• People Analytics
• Skills Coach
• Survey Programs
• Shoutouts
• AI Comment Summaries

Free Trial: Culture Amp did not offer any free trial

Pricing: Culture Amp pricing is hidden in its official website. You need to contact there sales team for quote.

Pros

As per reviews given by users, these are the benefits of Culture Amp:

• Employee Engagement Focus: Culture Amp specializes in collecting and analyzing employee feedback via surveys.
• Performance Reviews: The platform allows for 360-degree feedback, resulting in comprehensive performance insights.
• Analytics: Understanding employee sentiment and organizational culture is made easier with the use of advanced analytics.

Cons

Here are the drawbacks of Culture Amp based on reviews:

• Complexity: Smaller teams may find the range of features too much to handle.
• High Cost: In comparison to other platforms with comparable features, the pricing might be higher.

5. Workhuman

Workhuman (formerly Globoforce) is one of the best performance management tools that integrates performance management with employee recognition. It creates a dynamic, human-centric approach to performance, focusing on connection and growth. 

Workhuman offers integrations with tools like Workday, Slack, Outlook, etc.

Key Features

• Social Recognition
• Conversations
• Life Events
• Service Milestones
• Community Celebrations
• Moodtracker
• Workhuman iQ

Free Trial: Workhuman did not offer any free trail as of now

Pricing: Workhuman has kept their pricing details hidden. Interested businesses should contact their sales team for a quote.

Pros

Based on users' reviews, here are the benefits of Workhuman:

• Social Recognition: Workhuman emphasizes peer-to-peer recognition to promote a positive work environment.
• AI Integration: The "Human Intelligence" feature helps to craft meaningful recognition messages.
• Data-Driven Insights: Managers receive analytics on employee recognition trends that help with talent management.

Cons

The cons of Workhuman, a performance management system, are as follows:

• AI Limitations: Some users find AI-generated messages to be less authentic or emotionally resonant.
• Implementation Complexity: Integrating Workhuman into existing systems can be complex and may require significant effort.

6. Engagedly

Engagedly is a performance management platform focused on boosting employee engagement and growth. It offers tools like 360-degree feedback, goal management, and AI-powered performance reviews to align teams with organizational goals.

Engagdely seamlessly integrates with the following platforms like BambooHR, ADP Marketplace, Google Sheets, Gusto, Google SSO, Meta Workplace, etc.

Key Features

• Performance Management
• Goal Management
• 360-Degree Feedback
• Continuous Feedback
• Employee Engagement
• Recognition and Rewards
• AI-Powered Talent Analytics
• Pulse Surveys
• Succession Planning
• Compensation Management
• Social Collaboration
• AI-Powered HR Assistant

Free Trial: Engagedly provides a 6-month free trial of its E10 Employee Engagement Survey tool. This allows organizations to measure employee engagement and get a tailored report with useful insights. However, the trial applies only to the E10 Survey; other Engagedly platform features may not be included.

Pricing:

The pricing structure of Engagedly may vary based on employee count and bundling. However, the minimum pricing will be $7500 per year.

Pros

Here are the pros of Engagdely, based on reviews given by users:

• AI-Powered Features: Actively uses AI to improve goal-setting and performance evaluations.
• Succession Planning: Career pathing and future leader identification tools are available on the platform.
• Mentorship Programs: Optional add-ons help employees develop through mentorship.

Cons

These are the drawbacks of Engagedly, as per users, that you must know:

• No Free Trial: Engagedly does not provide a free trial period for potential users to test the platform before committing financially
• Pricing: The cost may be expensive for small businesses or startups.

7. ThriveSparrow

ThriveSparrow is a cutting-edge PMS that leverages AI-driven insights and 360-degree feedback to enhance employee performance. It’s designed to streamline HR processes and provide a comprehensive view of workforce performance.

In addition, its anonymous engagement surveys to boost participation make this employee performance management software unique. ThriveSparrow offers integration with platforms like Paycom, Keka, Slack, Gusto, Google, Deel, etc.

Key Features

• Goal OKRs
• Performance Reviews
• Peer Recognition (Kudos)
• eNPS Surveys
• Automated Pulse Surveys
• AI Insights
• Multilingual Surveys
• Personal Development Plans
• 360-Degree Feedback
• Action Plans
• AI-Driven Employee Sentiment Analysis

Free Trial: TriveSparrow offers 14 days free trial

Pricing:

Pros

Below are the following pros of ThriveSparrow based on users' reviews:

• 360-Degree Feedback: ThriveSparrow offers comprehensive feedback mechanisms, including bell curves and GAP analysis.
• AI-Driven Development Plans: The platform provides personalized development plans based on performance data.
• Engagement Surveys: Anonymous surveys help gauge employee satisfaction and areas for improvement.

Cons

As per the reviews highlighted by users, here are the cons of ThriveSparrow:

• Scalability: The software is suitable for small to medium businesses but may not scale for large ones.
• Integration Constraints: Integration options may be limited compared to more established platforms.

8. PerformYard

PerformYard specializes in simplifying performance reviews and feedback processes. Its flexible platform supports various review types, making it one of the best performance management systems among organizations with diverse evaluation needs.

It automatically captures all your performance data in one platform with detailed performance reporting. Besides this, PerformYard integrates well with many platforms like ADP, BambooHR, Gusto, Workday, UKG, Paylocity, etc.

Key Features

• Performance Reviews
• Goal Management
• Continuous Feedback
• Engagement Surveys
• Recognition
• Goal Check-ins
• Meeting Management
• 360 Reviews
• Reporting & Analytics

Free Trial: PerformYard did not offer any free trial

Pricing: 

Pros

Here are the benefits of using PerformYard, as per users:

• Flexible Review Cycles: PerformYard is compatible with several review formats, such as project-based, quarterly, and annual.
• Goal Tracking: Both individual and team goals can be set and tracked using the platform.
• Automated Reminders: Prompt alerts guarantee that performance evaluations are finished on time.

Cons

These are the cons of PerformYard highlighted by different users:

• User Interface: Some users find the interface less user-friendly than competitors.
• Customization Limitations: There may be limitations in tailoring the platform to specific organizational requirements.

9. ADP Workforce Now

ADP offers a comprehensive performance management software as part of its ADP Workforce Now® suite.. It’s ideal for medium to large enterprises needing integrated HR and performance solutions.

Furthermore, its seamless integration with payroll and benefits systems makes it a top priority among users. ADP Workforce Now seamlessly integrates with other ADP tools and platforms such as Sage, Workday, ZipRecruiter, Wex, and others.

Key Features

• Performance Reviews
• Goal Management
• Continuous Feedback
• Employee Engagement
• Reporting and Analytics

Free Trial: ADP Workforce Now did not offer any free trial

Pricing: ADP Workforce Now offers 3 plans Select, Plus and Premium. However, the pricing of ADP Workforce Now is hidden in its official website.

Pros

According to the customers' reviews, these are the advantages of using ADP Workforce Now as a performance management tool:

• Comprehensive HR Suite: ADP Workforce Now provides a comprehensive HR suite, which includes payroll and benefits administration.
• Automated Workflows: The platform streamlines HR processes, reducing manual tasks.
• AI-Based Troubleshooter: ADP Assist provides real-time assistance in resolving issues. It uses AI and natural language processing to understand user queries and provide relevant responses.

Cons

As per the reviews of customers, these are the cons of ADP Workforce Now:

• Add-On Costs: Performance and compensation management features are sold separately. Thus, this may increase overall costs.
• Learning Curve: New users may require time to become proficient with the platform's features.

10. Zoho People

Zoho People is an HR management software and performance management system that streamlines HR processes and tracks employee performance effectively. It is also known as employee appraisal software, which automates performance reviews and evaluations for a seamless feedback system.

Additionally, Zoho People integrates seamlessly with other Zoho tools like Zoho Recruit, Zoho Payroll, etc. As well as third-party applications such as G Suite, Microsoft Teams, and Slack etc.

Key Features

• Goals
• Key Result Areas (KRAs)
• Competencies
• 360-Degree Feedback
• Self-Appraisal
• Feedback Module
• Summary Module
• Performance Reviews
• 9-Box Matrix
• Reporting and Analytics

Free Trial: Zoho People offers 30 days free trial

Pricing:

Pros

These are the advantages of using Zoho People as a PMS, according to users:

• Comprehensive HR Management: Zoho People provides comprehensive HR management, including recruitment and performance tracking.
• User-Friendly Interface: The platform is designed to be simple to use and suitable for users with a variety of technical backgrounds.
• Integration Capabilities: Zoho People can integrate with other Zoho applications as well as third-party software.

Cons

Here are the drawbacks of Zoho People as per customers:

• Limited Analytics: The reporting capabilities of the platform may be limited and non-customizable.
• Pricing Structure: Small businesses with limited funds may be concerned about the per-user billing model.

How to Choose the Right Performance Management Software?

Selecting the best PMS for your organization depends on several factors, including your business size, budget, and specific needs.

Here are key considerations to guide your decision:

1. Ease of Use

A simple project management system reduces the learning curve and increases team adoption. Look for a user-friendly interface that team can easily navigate, reducing the need for extensive training. Drag-and-drop functionality, clear menus, and mobile accessibility ensure easy onboarding and use.

2. Customization

A flexible PMS should match your performance review processes. Select software that customizes review templates, goal-setting, and feedback workflows to fit your organization's culture and goals. This ensures it supports your HR strategies without needing changes to your practices.

3. Integrations

Seamless integration with existing tools increases efficiency and data consistency. Hence, opt for a PMS that integrates seamlessly with your HRIS, payroll systems, and collaboration platforms such as Slack or Microsoft Teams.

4. Scalability

Your performance management tool should grow with your organization. Choose a solution with flexible pricing and features. Scalable systems avoid platform switching as your business expands.

5. Analytics and Reporting

Choose a PMS with real-time dashboards, customizable reports, and insights into employee performance trends. These tools help HR teams identify strengths, address gaps, and align performance with organizational goals effectively.

6. Budget

Balancing cost and functionality is critical for maximizing value. Therefore, evaluate the total cost including subscription fees, implementation, and training expenses, etc. Look for transparent pricing models that align with your financial constraints while delivering essential capabilities.

7. Support and Training

Reliable support ensures smooth use. Choose a vendor with onboarding, customer service, and resources like tutorials or webinars. Strong support minimizes disruptions and helps your team maximize software use.

8. Demos and Trials

Before finalizing your choice, conduct demos or trials to assess the software’s real-world performance. Involve your HR teams and employees to gather feedback on usability and functionality. It ensures the selected PMS meets your organization’s practical needs and expectations.

Benefits of Performance Management Software

The significance of a performance management system offers numerous advantages for both organizations and employees. Below are the importance of implementing a performance management system in your organization:

1. Improved Productivity

A performance management system (PMS) establishes clear, measurable goals. Hence, ensuring employees focus on key priorities. Tracking and updates keep momentum and accountability, boosting productivity by reducing distractions.

2. Enhanced Engagement

Continuous feedback through a PMS encourages trust and open communication between employees and managers. Recognition of accomplishments boosts morale and fosters a sense of worth. Employees who are engaged are more committed, which can reduce turnover by up to 21%. 

3. Streamlined Processes

Automation in a PMS eliminates time-consuming manual tasks like performance reviews. HR teams can redirect efforts toward strategic initiatives, improving overall efficiency. Moreover, centralized data storage ensures easy access to performance records. 

4. Better Decision-Making

PMS analytics provide real-time insights into performance trends and workforce dynamics. Managers can identify top performers and areas needing support accurately. Data-driven workforce planning improves strategic accuracy. Hence, enabling leaders to make informed decisions that promote growth.

5. Talent Development

Personalized development plans in a performance management software focus on individual skill gaps and career goals. Training tools promote ongoing learning and growth, providing clear advancement paths. This creates a skilled and adaptable workforce.

6. Alignment with Goals

A performance management system aligns personal goals with organizational priorities. Employees understand how they contribute to the company's success. Regular check-ins promote continuous cooperation and result in measurable business success.

Research Methodology

Ranking the top 10 PMS (performance management systems) went beyond evaluating each product's features, price, affordability, and benefits. As a result, we visited each of their official websites, checked out real user reviews, and so on to gather accurate information.

Here is how we draft our staff performance management system blog:

• Defining Goals and Criteria: We aimed to select innovative, user-friendly PMS platforms suitable for businesses of all sizes, focusing on 2025 trends like AI and continuous feedback. 
• Gathering Data: We collected information from trusted sources, including websites like Lattice, 15Five, real user reviews on G2 and Capterra, and industry reports.
• Evaluating and Ranking: We analyzed over 20 PMS platforms and then drafted the top 10 PMS software for businesses.
• Final Results: To maintain impartiality, we compared data from multiple sources and consulted HR professionals for diverse perspectives.

Summary: Start Managing Employee Performance Now

A staff performance management system is a game-changer for organizations that want to improve employee performance, increase engagement, and achieve strategic objectives.

From AI-powered insights to continuous feedback and robust analytics, these platforms enable HR teams and managers to build high-performing workplaces. 

When choosing a PMS, consider your organization’s size, budget, and priorities. By investing in the right performance management software, you’ll unlock your workforce’s potential and drive long-term success.

Frequently Asked Questions

1. What software is used for performance management?

Performance management systems include tools like Lattice, 15Five, BambooHR, Culture Amp, and Zoho People. These platforms help businesses streamline goal-setting, feedback, reviews, and employee development.

2. What are the 3 types of performance management systems?

The three main types of performance management systems are: 1. traditional annual reviews, 2. continuous performance management, and 3. 360-degree feedback.

3. Which is the best performance management system?

The best performance management tool varies by organization size, goals, and culture. For example, Lattice and 15Five are great for engagement-focused teams. For an all-in-one HR suite with performance features, consider BambooHR and Zoho People.

4. What is the PMS process in HR?

The PMS (Performance Management Software) in HR includes setting goals, monitoring performance, giving feedback, and conducting evaluations. It begins with goal alignment and regular reviews.

5. Define performance management system

A Performance Management System (PMS) sets goals, monitors progress, and evaluates employee performance to improve productivity and development.