What is performance management software?
Performance management software gives HR teams and managers one place to set expectations, follow employee goals, conduct reviews, share feedback, and plan development. You can buy it as a standalone tool that connects to your HR system or as part of a broader HR management platform.
The strongest tools do more than digitize an annual appraisal. They connect day-to-day feedback with goals, one-on-one meetings, review cycles, skills, and compensation decisions so managers can evaluate performance using a broader record of an employee’s work. That record can support more consistent discussions, but it does not remove bias or make difficult people decisions for you.
For this guide, I reviewed the top performance management software solutions on the market and narrowed them down to the best of the best.
| Software | Best for | Starter monthly price |
| 15Five | Overall performance management software | $11 per user* |
| Leapsome | Employee coaching and development | Call for a quote |
| Engagedly | Goal management | $5 per user* |
| HiBob | Global organizations | Call for a quote |
| Lattice | Compensation management | $13 per user seat |
*for performance review tools
Top performance management software compared
| Software | One-year contract required | Performance review is an add-on | Compensation management tools | Expert score (out of 5) |
| 15Five | Yes | No | $9 per user monthly | 3.94 |
| Leapsome | Yes | No | Call for a quote | 3.83 |
| Engagedly | With a $7,500 minimum spend | No | $10 per user monthly | 3.77 |
| HiBob | Yes | Yes; call for a quote | Call for a quote | 3.35 |
| Lattice | With a $4,000 minimum spend | No | $10 per user seat monthly | 3.24 |

15Five: Best overall performance management software
Overall Score
3.94/5
Performance management features
4.06/5
Goal tracking features
4.13/5
Platform/interface
4.8/5
Reporting and analytics
4.13/5
Pricing
2.06/5
Support
3.35/5
User scores
4.37/5
Pros
- Transparent pricing.
- Recommended actions function with in-app learning modules.
- Customizable weekly check-ins.
- Built-in career development features.
Cons
- Limited integrations.
- Slow customer support and lack of live chat feature.
- Most unique features are only available in the Total Platform plan.
Why I chose 15Five
15Five has all the features you need for managing the performance review process, and those tools integrate effectively with each other. Everything connects. For example, weekly check-ins can surface an issue, carry it into a one-on-one, inform a review, and lead to a development action. That continuity is why 15Five rises above products that offer many of the same functions but leave managers to piece the record together.
I like its AI-curated recommended actions that connect you to its in-app learning hub. I also appreciate its HR dashboard, which displays critical information like manager effectiveness, performance, and engagement and provides recommended actions to address issues like reducing turnover.
Leapsome may go deeper on competency-based development, and Lattice in creating a more deliberate connection between reviews and compensation. However, 15Five is the better all-around choice for midsize organizations that want weekly manager habits, goals, formal reviews, and development actions to operate as one connected process.

Leapsome: Best for employee coaching and development
Overall Score
3.83/5
Performance management features
4.06/5
Goal tracking features
4.13/5
Platform/interface
3.93/5
Reporting and analytics
4.13/5
Pricing
2.81/5
Support
3.05/5
User scores
4.01/5
Pros
- Available in 38 languages.
- Functional, comprehensive AI tools.
- Single sign-on (SSO) capabilities with integrated apps.
- Modular pricing, with multi-module discounts available.
Cons
- Need to call for a price quote.
- Customer success teams’ services are limited to customers with a $6,000 annual contract.
- High learning curve.
Why I chose Leapsome
I chose Leapsome as the best option for employee coaching and development because of its data-driven, AI-guided frameworks and insights. Leapsome has the most superior AI tools I’ve seen in my research, which sets it apart when it comes to pulling and interpreting data. That data then integrates with its other systems to build a clear, achievable career development plan.
Leapsome’s fully customizable competency frameworks identify the skill benchmarks and objectives necessary for teams and individual positions. These tie into employee goals and performance reviews; Leapsome’s AI can identify skill gaps and connect individuals to the software’s learning hub to facilitate growth. Every one of these steps and integrations is designed to help employees along their desired path.
15Five provides a more structured rhythm for weekly manager conversations, but Leapsome gives HR more control over defining proficiency and connecting a skill gap to learning. That matters because coaching often stalls at general advice such as “improve communication” or “show more leadership.”

Engagedly: Best for goal management
Overall Score
3.77/5
Performance management features
4.06/5
Goal tracking features
4.13/5
Platform/interface
4.35/5
Reporting and analytics
2.81/5
Pricing
3.00/5
Support
3.58/5
User scores
3.95/5
Pros
- Easy to use.
- Comprehensive, customizable goal-setting.
- Strong customer support.
Cons
- Does not offer a comprehensive HR solution.
- It can be cost-inefficient depending on company size.
Why I chose Engagedly
Engagedly is my top pick for goal management because it allows admins to assign weights to objectives, which sets it apart from traditional “high/low” priority displays. On top of that, it’s the only platform I reviewed that used gamification features, offering points, badges, and incentives as rewards for completing goals.
Engagedly’s goal management features also encourage alignment across the organization. Cascading goals mean that individuals and teams can see how their tasks contribute to the wider company and that a global perspective can drive engagement. Goal templates and automation also make it easier to set and sync these goals across the organization.
However, if you want to connect employee goals to competencies and learning, consider Leapsome. 15Five is also stronger than Engagedly at carrying goals into weekly check-ins.

Bob: Best for global organizations
Overall Score
3.35/5
Performance management features
4.06/5
Goal tracking features
3.19/5
Platform/interface
3.95/5
Reporting and analytics
4.13/5
Pricing
0.5/5
Support
2.08/5
User scores
4.47/5
Pros
- Global mindset, with localized templates for various lifecycle stages.
- Truly comprehensive HR platform.
- Club view connects employees based on hobbies and interests.
Cons
- Mobile app lacks some features.
- Lack of pricing transparency.
- Performance management is part of the paid Talent add-on.
Why I chose HiBob
Global performance processes get messy quickly. Review dates, local holidays, reporting lines, currencies, and employment practices can differ by location even when the organization wants a shared framework. HiBob is the strongest fit here because it combines performance tools with location-aware employee data and configurable sites.
It’s a solid performance management software with strong customization options, performance review and goal-setting functions, recognition options, and compensation management tools. HiBob tailors each of these tools to the work culture, employment regulations, and time zones of each employee’s location and combines them on one platform.
15Five and Engagedly may offer more focused performance review routines, but HiBob is better equipped to keep reviews connected to the employee records, locations, and compensation data of a global distributed workforce.

Lattice: Best for compensation management
Overall Score
3.24/5
Performance management features
2.94/5
Goal tracking features
2.88/5
Platform/interface
3.83/5
Reporting and analytics
4.13/5
Pricing
1.75/5
Support
3.35/5
User scores
4.48/5
Pros
- Customizable performance and compensation review cycles.
- Actionable insights from engagement surveys.
- Configurable pay guidelines, approvals, budgets, and market data.
Cons
- Minimum annual contract is $4,000, billed annually.
- Difficult-to-navigate UI.
Why I chose Lattice
When it comes to compensation management, the most important things are transparency and equity. I chose Lattice as the best in this field because its features enable those two factors. Lattice includes market benchmarks based on role and location to drive pay equity and can connect its compensation frameworks to performance reviews to drive transparency.
Find your new performance management software
Performance management software FAQs
Boosts morale and motivation
One of the most important elements of performance management software is facilitating performance reviews. Regular performance reviews let managers recognize individuals for their hard work, improving employee morale. Moreover, performance management software includes feedback features that support consistent communication between managers and employees.
Along the same lines, many performance management software solutions have employee recognition and rewards capabilities, enabling organizations to further show appreciation for employees’ work. When companies consistently praise workers for exceptional performance, this encourages other staff members to enhance their own performance.
Strengthens employee retention
Regular feedback sessions give employees opportunities to interact with their managers and raise concerns. You can then resolve said issues as soon as possible. Workers are more likely to stay loyal to the company when their concerns are swiftly addressed, improving employee retention. Performance management also helps in role clarity, expectations, and more consistent and fair compensation practices, which also lower the possibility of employees looking for work elsewhere.
Supports employee engagement
Performance management software’s continuous feedback and one-on-one manager meeting features make employees feel heard and included in the organization. Further, these mechanisms help your employees better understand what’s expected of them. When employees have clear guidance on day-to-day tasks, their efforts naturally achieve better outcomes.
Surfaces skill gaps and opportunities
With frequent performance check-ins, managers can better monitor and understand the skill sets and capacity of employees. HR teams can pinpoint individuals with skill gaps and introduce training to bridge the gap before it impacts productivity. At the same time, regular performance reviews also reveal which employees are ready for a promotion or increased responsibilities.
Encourages employee agency
Numerous performance management solutions let employees view their work progress and set business goals for themselves. Employees feel valued and more engaged because of their active involvement in the decision-making process and their focus on their own professional goals.
Performance review tools
Unsurprisingly, performance management software tends to have tools to facilitate performance reviews. This includes larger annual or quarterly performance reviews, along with structures for 1:1 meetings with managers, performance improvement plans, and other feedback. Many platforms will have 360-degree review capability, allowing reviews from yourself, your peers, and your managers.
Goal management tools
These tools include methods of assigning and setting goals, tracking progress, OKR management, and so on. Anything that involves measuring what an employee is doing and how far along they are can fall into this category. Goal management tools often integrate with review tools to provide objective measures of performance metrics.
Reports and dashboards
Performance review and goal management tools gather data, and reports and dashboards are for analyzing and displaying it. They can track performance over time, by team or manager, or highlight what skills need improvement. These displays are often customizable to specific organizational needs.
Performance review software
As the name suggests, performance review software lets managers evaluate the performance of their direct reports. The software usually measures employee performance on a set cadence throughout the year based on standardized metrics and/or self-evaluation. To be successful, the performance review process requires consistent communication between the manager and the employee.
KPI software
Key performance indicator or KPI software is a performance management tool that automatically tracks how well your organization, its departments, teams, or individual employees are performing against company goals and objectives. KPIs also work as an HR tool when used to support data-driven performance conversations with employees.
Similarly, goal setting and tracking solutions concentrate on setting work-related goals to inspire employees to improve their performance. Goal software also ensures that employee goals align with department and organization objectives.
360-degree feedback software
360-degree feedback software simplifies the performance review process by gathering feedback from multiple sources instead of focusing on only manager reviews. It provides each employee with a performance assessment based on the views of their colleagues, clients, and leaders.
Moreover, this software allows employees to provide assessments of their managers. Evaluation results are always confidential, but this software tends to be more successful when deployed in larger teams.
Employee recognition software
Employee recognition systems play a critical role in any performance management strategy. You can distribute rewards and recognition in the form of cash incentives or bonuses or via simple public acknowledgement of employees’ efforts and contributions. Regardless of the form it takes, recognizing high performance is key to maintaining morale and retaining top talent.
































