5 of the Best Performance Management Tools for CEOs

When it comes to HR, we all know the expression, “What gets measured, gets managed.”

Performance management is a continual process of communication between managers and employees, aligning individual efforts with organisational goals. 

It involves setting objectives, providing feedback and evaluating results to improve overall performance.

Performance management tools and systems have become a huge market for software vendors. 

The global performance management systems market is expected to reach US$8.53bn by 2030 – growing at a compound annual growth rate (CAGR) of nearly 12%. 

What to look out in a performance management tool

When selecting a performance management tool, CEOs should prioritise features which support their specific business needs. Key considerations include goal-setting capabilities, real-time feedback mechanisms and data analytics for informed decision-making. Integration with existing HR systems and user-friendly interfaces are also crucial for widespread adoption and effectiveness.

Many modern performance management tools offer continual feedback options, moving away from traditional annual reviews. This approach allows for more timely course corrections and better alignment with your business needs.

Some tools incorporate artificial intelligence to provide personalised development recommendations and identify potential skill gaps.

Mobile accessibility is becoming increasingly important, enabling managers and employees to engage with performance processes on-the-go. This feature is particularly valuable for organisations with fully remote workers or those working from home. 

Additionally, tools which facilitate peer-to-peer feedback can foster a culture of collaboration and continuous improvement.

Security and compliance features are essential, especially for organisations handling sensitive employee data. Look for tools that offer robust data protection measures and comply with relevant regulations such as GDPR.

"The most effective performance management tools today are those that empower employees to take ownership of their development while providing managers with actionable insights," Josh Bersin, global industry analyst, told HR Executive.

5 of the best performance management tools

When selecting a performance management tool, consider factors like your organisation's size, existing processes, integration needs, and specific performance management goals. 

Many of these platforms offer free trials, allowing you to test their functionality before committing.

Leapsome

Leapsome is an all-in-one performance management and employee engagement platform. Key features include:

• Customizable performance reviews and 360-degree feedback
• Goal setting and OKR tracking
• Continuous feedback and recognition
• Employee engagement surveys
• Learning and development tools

Best for: Stands out for its flexibility and ability to integrate performance management with employee engagement initiatives.

PerformYard

PerformYard offers a streamlined performance management solution focused on simplifying and automating review processes. Notable features:

• Flexible review cycles and templates
• Goal tracking and alignment
• Real-time feedback
• Performance reporting and analytics
• Dedicated customer success manager for every client

Best for: Ideal for organisations looking to streamline existing processes without imposing a rigid system.

15Five

15Five specialises in continuous performance management with an emphasis on regular check-ins and feedback. Key capabilities include:

• Weekly check-ins between managers and employees
• OKR and goal tracking
• 360-degree reviews
• Employee recognition
• Career development planning

Best for: Well-suited for companies wanting to improve communication and focus on employee development.

Lattice

Lattice offers a comprehensive performance and engagement platform. Standout features:

• Goal setting and OKR management
• Performance reviews and 360-degree feedback
• 1-on-1 meeting tools
• Employee engagement surveys
• Career development planning

Best for: A good fit for mid-sized to large companies looking to integrate performance management with employee engagement initiatives.

Culture Amp

Culture Amp combines performance management with employee engagement and development. Key features:

• Performance reviews and 360-degree feedback
• Goal setting and tracking
• Employee engagement surveys
• Learning and development tools
• People analytics and reporting

Best for: Ideal for data-driven organisations focused on improving company culture alongside performance.

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