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The success of a company hinges significantly on its workforce. When working with a high-performing team, achieving organizational goals is no longer a distant dream. However, for small businesses, the challenge remains: how can you be certain that your team is performing at its best, and what can you do to support them in reaching their full potential?

The answer can be found in utilizing the potential of performance management software. Such tools help businesses track how well their employees are doing at work. The software allows managers to set goals, give feedback, and evaluate performance so that everyone can improve and grow in their roles.

That said, choosing the right performance management software for small businesses comes with its own set of challenges. To help you with this, Software Finder presents a list of the best performance management software for small businesses, featuring advanced tools that can turn your workforce into a force to be reckoned with.

Nine Best Performance Management Software For Small Businesses

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Human resources (HR) software solutions have come a long way, as they now incorporate various features and functionalities, including performance management tools. This advancement makes it easier for small businesses to streamline employee evaluations, goal setting, and development planning—all from a single platform. 

Here's a list of the top 9 software options with performance management capabilities:

Comparison Table

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1. BrightHR

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BrightHR is an all-in-one HR platform with a special focus on people management. It is an easy-to-use software that comes with advanced tools for tracking employee performance, setting goals, and conducting appraisals.

Unique Features

The software is known as a comprehensive employee recognition platform, allowing HR managers to identify and reward top performers easily. There's a live leaderboard, which makes the entire process transparent and boosts employee confidence and productivity.

Pros

  • Easy to navigate, even for non-tech-savvy users
  • Generates insight reports on employees' performance
  • Highlights employees' achievements with company-wide visibility

Cons

  • Few customization options

Pricing

The vendor offers personalized pricing plans for every business according to its individual requirements.

2. Paycor

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Apart from core HR functionalities, Paycor comes with an extensive set of features to streamline performance management. It is a well-equipped software solution that helps small businesses evaluate employee performance and manage reviews efficiently.

Unique Features

Paycor incorporates advanced 'goal management' tools, allowing managers to set, track, and update goals in real time. It has ready-to-use templates that streamline the performance review process.

Pros

  • Customizable reporting feature
  • Dedicated tools for talent development and career management
  • Supports seamless integrations with payroll and other HR functions

Cons

  • Occasional lag in software updates
  • Doesn't cater to large enterprises

Pricing

The software offers flexible pricing plans depending on the company's size.

3. Paylocity HR

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Paylocity HR is a cloud-based software that excels in performance management. It is suitable for small and mid-sized businesses, automates critical HR processes, and improves employee engagement and productivity.

Unique Features

The software stands out for its 'Peer Recognition' feature, which enables employees to recognize each other's achievements. Furthermore, it can seamlessly integrate with a learning management system (LMS) to boost performance management and align employee learning with performance goals.

Pros

  • Robust employee engagement tools
  • Responsive and helpful customer support
  • User-friendly interface

Cons

  • Limited customization for performance review forms

Pricing

The vendor offers tailored pricing plans catering to the diverse requirements of businesses.

4. BambooHR Payroll

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Renowned for its simple yet functional interface and effectiveness, BambooHR boasts various features that streamline essential HR processes, including performance management. It is an award-winning software that caters to businesses of all sizes, keeps them compliant with regulations, retains employees, and fosters a culture of growth and positivity. 

Unique Features

The software is known for its intuitive employee self-service portal, which allows employees to view and track their performance data. Moreover, it uses employee net promoter score (eNPS) surveys to help HR managers or employers measure employee satisfaction within the company.

Pros

  • Intuitive platform with robust features
  • Strong focus on employee engagement and loyalty toward the company
  • Accurate tracking and reporting

Cons

  • Limited advanced reporting tools
  • Setting up digital signatures can be complex

Pricing

The vendor offers flexible pricing plans according to the company's requirements.

5. HiBob

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It is a modern, easy-to-use platform that can help you manage all your human resource information system (HRIS) needs. In addition to core HR functions, it features advanced tools for performance management and employee engagement. 

Unique Features

HiBob facilitates the creation of individual employee development plans, which help them achieve their career goals. Furthermore, it creates customizable performance cycles, allowing managers to tailor performance reviews to business requirements.

Pros

  • Emphasizes employee growth and active engagement
  • Highly customizable and flexible
  • Modern and intuitive user interface

Cons

  • Some feedback indicates rare instances of system irregularities

Pricing

The vendor offers custom pricing plans according to the business's requirements.

6. Lattice HR

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Lattice is a powerful performance management and employee engagement platform. It's ideal for businesses, big or small, focusing on continuous employee development and creating a high-performance culture. 

Unique Features

With OKR tracking, Lattice helps companies align employee goals with organizational objectives. In addition, it facilitates managers and employees to have structured one-on-one meetings using easy-to-use meeting templates.

Pros

  • Can be tailored to fit the needs of businesses of all sizes
  • Offers advanced performance management tools
  • Offers valuable insights and analytics
  • Focuses on employee engagement, productivity, and goal alignment

Cons

  • Delayed customer support response, according to user reviews
  • The process of migrating data from old systems can be improved

Pricing

The software pricing starts from $11/user/month.

7. PerformYard

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PerformYard is a performance management platform that supports employee growth by providing tools for tracking progress and conducting thorough, consistent reviews. It helps organizations manage and improve employee performance through a structured approach. 

Unique Features

The software stands out due to its 'flexible review cycles', which allow managers to customize review schedules to fit their business requirements. Moreover, it offers a '360-degree feedback' feature that helps collect feedback from multiple sources.

Pros

  • Simple and intuitive interface
  • Supports comprehensive evaluations using advanced review and feedback tools
  • Highly customizable performance review process
  • Responsive and helpful customer support

Cons

  • Limitations with org structure
  • Lacks advanced reporting features

Pricing

The software offers flexible pricing plans, starting from $5/user/month.

8. Performance Pro

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Simplify, optimize, and customize your team's capabilities with Performance Pro. It is a savvy performance management solution that promotes ongoing coaching and feedback through various features and channels. 

Unique Features

The software is known for its 'automated review reminders' feature, which helps keep the performance review process on track. Furthermore, 'competency libraries' and 'employee goal setting' features also make it valuable for HR managers.

Pros

  • Facilitates effective employee development
  • Provides comprehensive employee evaluation process
  • Comes with advanced goal-setting and tracking tools

Cons

  • Lacks advanced customizable options for performance reviews

Pricing

The pricing starts from $2/user/month.

9. Engagedly

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Engagedly is a comprehensive talent management software aimed at elevating employee performance. It is an all-in-one suite that offers robust tools to simplify and streamline performance reviews, fostering a culture of real-time feedback and continuous development. 

Unique Features

Companies prefer Engagedly due to its OKR and goal alignment features. Furthermore, it enjoys widespread fame due to its 'social recognition' feature, which helps promote a positive work culture.

Pros

  • Responsive customer support team
  • Strong focus on employee development
  • User-friendly interface with easy dashboard access

Cons

  • Lacks customization in some features

Pricing

Engagedly pricing plans start from $5,000 (billed annually).

How We Chose The Best Performance Management Software For Small Businesses

At Software Finder, we have a team of experienced software consultants who handpicked the best performance management software for small businesses by following a strict criterion. We considered the following factors when curating the list: 

Target Market 

For this list, our focus was primarily on small businesses. Therefore, we evaluated performance management solutions based on cost-effectiveness, ease of use, and scalability to ensure they meet smaller entities' needs. 

Features 

We factored in core features and functionalities essential for effective performance management, including goal setting, feedback systems, performance reviews, and employee development tools. 

User Experience 

No matter how many features a performance management tool offers, it wouldn't be useful if it didn't offer an optimal user experience. This is why we have only selected software solutions with an intuitive interface. This way, small businesses don't have to worry about the steep learning curve, and managers can start working on improving employees' performance right away. 

Customer Support 

A prompt and knowledgeable customer support team can elevate the experience of using any software. Therefore, we considered the availability of customer support channels and the quality of their response to ensure small businesses face minimal downtime. 

Integration Capabilities 

HR personnel in small businesses typically have to use different tools, such as payroll or HR software, to complete various tasks. To ensure performance management software fits smoothly into their tech ecosystem, we looked for solutions that come with strong integration capabilities. 

Affordability 

Small businesses often face budget constraints, making selecting a performance management solution a major challenge. To make the process easy for them, we selected tools that offer maximum value for money in terms of features and functionalities. We evaluated their pricing models, subscription costs, and additional charges (if any) to ensure they are cost-effective for small businesses. 

User Feedback And Reviews 

To make our list completely objective, we analyzed user feedback and reviews obtained through various credible channels. This helped us gauge each tool's reliability and performance. 

What Features Should Small Businesses Look For In Performance Management Software

Given the diverse nature of businesses across different industry niches, their objectives and requirements for selecting performance management software can vary. However, there are certain features that a performance management solution must possess in order to cater to small businesses' expectations. 

These include:

  • Goal setting and tracking to monitor performance goals
  • Continuous feedback mechanisms for regular feedback
  • Employee development tools for career growth
  • Performance reviews for structured evaluations
  • Reporting and analytics for data-driven insights
  • Mobile accessibility for on-the-go access
  • Strong security measures to protect data

Benefits Of Performance Management Software For Small Businesses

Implementing performance management software offers numerous benefits that can make it a worthwhile investment for your small business, even if you're concerned about the costs. 

Here are some key advantages to consider:

  • Enhanced Employee Performance: With a performance management system in place, managers are better positioned to conduct regular performance reviews and provide continuous feedback to employees. This results in enhanced employee performance
  • Improved Goal Alignment: Performance management software can help align individual and team objectives with organizational goals, ensuring that the entire workforce is on the same page and working towards achieving the same targets
  • Time And Cost Efficiency: Automating performance management processes reduces the time and resources spent on administrative tasks, allowing managers to focus on more strategic activities
  • Data-Driven Decision Making: Most performance management software solutions have built-in reporting and analytics tools. By leveraging data obtained through these tools, managers can make informed decisions related to growing employees' skills
  • Personalized Employee Development: Managers can create personalized employee development plans by obtaining key insights on employee performance. This will help enhance their skills, ultimately creating a strong workforce
  • Enhanced Employee Retention: Performance management software helps tailor career paths and provides employees with growth and development opportunities. This leads to higher employee retention rates

Drive Success Through Effective Performance Management

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By selecting the right performance management software, you take charge of boosting employee productivity and improving your workforce's capabilities. Therefore, be very tactful when it comes to making the right pick. Get in touch with us and talk to our experts if you can't find the right software for your small business.