Author: Srikant Chellappa

Struggling with employee underperformance can disrupt productivity, impact team morale, and hinder organizational goals. Without structured guidance, employees may find it difficult to improve, leading to frustration, disengagement, and even turnover.

In fact, companies with highly engaged employees are 23% more profitable than those with low engagement. This highlights the importance of having a clear strategy to support and uplift struggling employees.

Enter the Performance Improvement Plan (PIP) — a formal framework designed to help employees address performance gaps in a constructive way. A well-crafted PIP sets clear objectives, offers actionable feedback, and establishes achievable targets within a defined timeline.

It encourages open communication, provides structured support, and fosters skill development. By aligning individual efforts with company goals, PIPs not only help employees succeed but also boost accountability, motivation, and overall productivity.

In this blog, we’ll explore the best practices, examples, and templates to create effective PIPs. Whether you’re an HR leader or a manager, implementing these strategies can transform underperformance into growth opportunities, creating a thriving and goal-oriented work

When to Use a PIP

Below are key scenarios where a PIP can be beneficial.

1. Consistent Underperformance

A PIP is appropriate when an employee consistently fails to meet performance expectations. This may include missing sales targets, failing to achieve benchmarks, or producing low-quality work. These issues often point to gaps in skills, lack of motivation, or unclear expectations.

A PIP helps by identifying specific performance gaps and providing actionable steps to address them. It also communicates that the organization recognizes the employee’s potential and is committed to their long-term success.

2. Behavioral Issues Affecting Teamwork or Productivity

Persistent behavioral issues — such as poor communication, conflicts with colleagues, or reluctance to provide feedback — can disrupt team harmony and reduce productivity. If left unchecked, these behaviors can harm the work environment and project outcomes.

In such cases, a PIP can encourage self-awareness, define acceptable behaviors, and provide structured support through mentoring or training. By addressing these issues, a PIP helps create a positive work environment where employees can contribute effectively to team success.

3. Difficulty Meeting Deadlines or Quality Standards

Employees who consistently struggle to meet deadlines or maintain quality standards may benefit from a PIP. These challenges can stem from insufficient tools, poor time management, or inadequate training.

A PIP sets clear expectations by outlining specific objectives related to timeliness and quality. It provides a structured timeline for improvement and allows managers to assess whether additional resources or training are needed to support the employee’s performance.

4. Inconsistent Performance Levels

If an employee’s performance fluctuates significantly — excelling one month and underperforming the next — a PIP can help stabilize their output by providing clear benchmarks, regular feedback, and consistent expectations.

5. Resistance to Feedback or Development

If an employee resists constructive feedback, coaching, or professional development opportunities, a PIP can outline expectations for growth and cooperation. This approach emphasizes the importance of continuous learning and adaptability.

6. Lack of Initiative or Engagement

When employees demonstrate a lack of initiative, enthusiasm, or engagement, it can impact team dynamics and productivity. A PIP can help set goals to encourage proactive behavior, improve participation, and foster a greater sense of ownership in their work.

When Not to Use a PIP

A Performance Improvement Plan (PIP) can be a great tool for addressing performance issues — but let’s be real, it doesn’t work for every situation. Misusing a PIP can create unnecessary stress and damage trust.

Here’s when you should skip the PIP and try something else instead.

1. When Expectations Aren’t Clear

If your employee hasn’t had proper training or doesn’t know what’s expected of them, a PIP isn’t the answer. It’s not fair to hold someone accountable for goals they never understood in the first place.

👉 Fix First: Make sure job expectations, training, and resources are crystal clear before you even think about a PIP.

2. When Personal Challenges Get in the Way

Sometimes life happens. Maybe your employee is dealing with health issues, family emergencies, or other temporary setbacks. Slapping a PIP on them during a tough time isn’t just ineffective — it’s kind of heartless.

👉 Be Human: Offer support, flexibility, or counseling instead. Sometimes, a little empathy goes a long way.

3. When the Decision Is Already Made

Let’s be honest — if you’ve already decided to let someone go, don’t waste their time (or yours) with a PIP. It’s not meant to be a box-checking exercise before firing someone.

👉 Keep It Ethical: A PIP should be about helping employees improve, not leading them on.

4. For One-Off Mistakes

Everyone makes mistakes. If an employee messes up once or twice, it doesn’t mean they need a full-on improvement plan. PIPs are for consistent or major performance issues.

👉 Keep It Simple: A quick chat or some constructive feedback will usually do the trick.

5. When It’s a Personality Clash

If two employees just don’t get along, a PIP won’t fix that. These issues are more about relationships than performance.

👉 Resolve Conflicts: Try team-building activities, mediation, or honest conversations to work things out.

Key Components of a PIP

1. Specific Goals and Objectives

One of the most crucial elements of a Performance Improvement Plan (PIP) is setting clear and specific goals. Vague instructions like “do better” won’t cut it. Employees need to know exactly what’s expected of them.

Instead of saying, “Improve communication,” a better goal would be:
“Respond to all emails within 24 hours for the next two weeks.”

These goals should be:

• Precise and Measurable: Make sure targets are clear and easy to track.
• Relevant: Align objectives with the employee’s job responsibilities and core tasks.
• Time-Bound: Assign deadlines to create urgency and focus.

For example, if an employee struggles with deadlines, a goal might be: “Submit all assignments on time for the next 30 days.”

Clear, relevant, and time-bound targets give employees a concrete pathway to success and show them the company is invested in their growth.

2. Timeline for Improvement

A PIP needs a well-defined timeline to ensure accountability and track progress. Timelines typically range from 30, 60, or 90 days, depending on the complexity of the performance issue.

• Shorter Timelines: Ideal for addressing immediate issues (e.g., meeting weekly sales quotas).
• Longer Timelines: Better for more complex challenges, like skill development or behavioral changes.

Including milestones and check-ins within the timeline is key. For instance:
“Weekly progress meetings to review tasks, address challenges, and adjust strategies as needed.”

Also, make sure the timeline factors in the support and resources provided to the employee, such as training, mentorship, or additional tools.

3. Actionable Steps and Support

Goals are great, but employees need to know how to achieve them. Break down objectives into actionable steps that are:

• Practical and Measurable: For example, if the goal is to improve quality, an actionable step might be: “Double-check all work against a quality checklist before submission.”
• Time-Specific: Assign deadlines for each step to keep progress on track.

Regular check-ins (e.g., weekly meetings) give employees a chance to get feedback, ask questions, and tackle roadblocks.

But it’s not just about tasks — support matters too. This could include:

• Mentorship: Pairing the employee with a mentor for guidance.
• Training: Offering workshops or courses to build necessary skills.
• Tools and Resources: Ensuring they have everything they need to succeed.

Finally, open communication is essential. Employees should feel comfortable asking for help or clarifying doubts without fear of judgment. Regular encouragement and constructive feedback can boost confidence and motivation.

4. Clear Consequences

A PIP should lay out the potential outcomes clearly. Employees need to know what happens if they succeed — and what happens if they don’t.

• If the Employee Succeeds:
  
  Positive outcomes could include retaining their position, being eligible for new opportunities, or earning renewed trust from management.
• If the Employee Fails:
  
  Consequences might include reassignment, demotion, or, in some cases, termination.

Being upfront about these outcomes ensures transparency and reinforces the seriousness of the PIP. However, the focus should always be on supporting improvement rather than punishment.

5. Performance Metrics and Measurement Criteria

Clearly define how success will be measured. Metrics provide objectivity and help both the employee and manager track progress effectively. For example:

• Sales Goals: “Close 5 new deals per month.”
• Quality Standards: “Achieve a project error rate of less than 2%.”
• Customer Service: “Maintain a customer satisfaction score of 90% or above.”

Why It Matters: Metrics create transparency and eliminate ambiguity, ensuring both parties understand what success looks like.

6. Regular Feedback and Communication Plan

Incorporate a schedule for consistent feedback throughout the PIP period. Regular check-ins help keep the employee on track and provide opportunities for real-time adjustments.

• Weekly Meetings: To review progress, address challenges, and offer support.
• Progress Reports: Document key achievements and areas that still need attention.

Why It Matters: Ongoing communication fosters a collaborative environment and makes employees feel supported rather than scrutinized.

7. Employee Input and Agreement

Engage the employee in the PIP process by encouraging their input. Discussing their perspective and challenges can lead to a more tailored and effective plan.

• Ask for Feedback: “Does this plan feel achievable to you?”
• Mutual Agreement: Have the employee acknowledge and agree to the plan in writing.

Why It Matters: Collaboration ensures the employee feels ownership and commitment to the process.

8. Support from HR

Involve HR to ensure the process is fair, legal, and consistent with company policies.

• HR Review: Ensure the PIP is documented and aligns with employment laws and company guidelines.
• HR Mediation: If conflicts arise during the PIP, HR can help resolve them objectively.

Why It Matters: HR involvement safeguards against legal risks and supports fairness in the process.

9. Documentation and Record-Keeping

Maintain thorough documentation of the entire PIP process, including:

• Initial Performance Issues
• Goals and Action Plans
• Progress Updates
• Final Outcomes

Why It Matters: Proper documentation protects the company in case of disputes and ensures transparency.

10. Follow-Up Plan After Completion

Even after the PIP ends, have a follow-up plan to sustain improvement and prevent regression.

• Continued Check-Ins: Monthly or quarterly reviews to monitor ongoing performance.
• Recognition: Acknowledge improvements and successes to reinforce positive behavior.

Why It Matters: Follow-ups ensure long-term success and show the employee that their growth is valued.

Best Practices for Implementing a PIP

1. Maintain a Collaborative Approach

A PIP isn’t meant to be a top-down directive — it works best as a collaborative effort. When employees feel like partners in the process, it fosters trust, open communication, and mutual accountability.

• Get Their Input: Involve employees in creating the PIP. Ask for their perspective on the challenges they’re facing and what support they need. For example, if deadlines are an issue, they might suggest tools or processes to help them stay on track.
• Regular Check-Ins: Schedule weekly or bi-weekly meetings to discuss progress, challenges, and adjustments. Make these meetings a safe space where employees feel comfortable asking for help or clarification.
• Offer Resources and Guidance: Provide the tools, mentorship, or training they need to succeed. This shows the company’s commitment to their development.
• Celebrate Small Wins: Acknowledge progress along the way to keep morale high and reinforce positive behavior.

Why It Works: A collaborative approach shows employees that the company values them and is invested in their success, making the PIP feel supportive rather than punitive.

2. Be Transparent and Document Everything

Transparency and documentation are your best allies in implementing a fair and effective PIP. Clear communication and detailed records create trust and ensure accountability.

• Set Clear Expectations: From the start, explain the goals, steps, timeline, and potential outcomes of the PIP. No one should be left guessing about what they need to achieve.
• Document Thoroughly:
  • Initial Plan: Outline performance issues, specific goals, and the resources provided.
  • Meeting Summaries: After each check-in, document progress, feedback, and any changes to the plan.
  • Final Outcome: Whether the PIP succeeds or fails, document the result and the reasons behind it.
• Explain Consequences Clearly: If the PIP could lead to disciplinary action, be upfront about it. Conversely, if the employee succeeds, highlight how that reinforces their value to the company.

Why It Works: Transparency removes ambiguity, while documentation protects both the employee and the company, ensuring a fair and consistent process.

3. Offer Constructive Feedback and Support

The goal of a PIP is improvement, not criticism. Providing constructive feedback and ongoing support makes the process positive and motivating.

• Be Specific: Focus on behaviors and actions, not personal traits.
  • Instead of: “You’re not meeting expectations.”
  • Try: “I’ve noticed delays in submitting reports. Let’s discuss ways to improve your time management.”
• Regular Feedback: Hold consistent check-ins to review progress, celebrate wins, and tackle challenges. This shows that the company is committed to helping the employee improve.
• Provide Support: Offer the resources they need to succeed — whether it’s mentorship, training, or tools. If workload is an issue, consider redistributing tasks or adjusting deadlines.

Why It Works: Continuous support and clear, actionable feedback help employees feel guided and motivated, increasing their chances of success.

4. Focus on Growth, Not Punishment

A PIP should be seen as a tool for development, not discipline. Emphasizing growth helps employees stay positive and motivated.

• Frame It Positively: Communicate that the goal of the PIP is to help the employee succeed, not to penalize them. Let them know their contributions are valued and the company is invested in their improvement.
• Set Realistic Goals: Ensure the targets are achievable and aligned with the employee’s role. Clear steps for improvement make the process less daunting.
• Avoid Threats: Don’t treat the PIP as a prelude to termination. Instead, approach it as a way to unlock potential and address performance gaps together.

Why It Works: When employees see the PIP as an opportunity for growth, they’re more likely to engage with the process and take ownership of their improvement.

📝 Basic PIP Template

Use this template as a foundation for any role or industry.

1. Employee Information

• • Name: ______________________
  • Job Title: __________________
  • Department: ________________
  • Date of PIP Initiation: _______

2. Performance Issues

Describe the specific behaviors or performance gaps that need improvement.
Example: “Failure to meet deadlines for 3 consecutive projects” or “Consistent delays in responding to customer inquiries.”

3. Specific Goals and Objectives

Outline measurable and clear targets.
Example: “Submit all project deliverables on time for the next 60 days” or “Respond to customer emails within 24 hours.”

4. Action Plan

List the steps and resources available to support improvement.
Example:

• • Attend a time management workshop.
  • Weekly mentorship sessions with [Mentor Name].

4. Timeline for Improvement

Define the duration of the PIP and check-in dates.
Example: “This PIP will run from [Start Date] to [End Date] with weekly progress check-ins.”

6. Support and Resources

Detail any tools, training, or assistance provided.
Example:

• • Access to project management software.
  • Training on effective communication skills.

7. Consequences

Explain what will happen if the PIP is successfully or unsuccessfully completed.
Example:

• • Success: Retain current position and responsibilities.
  • Failure: Possible reassignment or termination.

🔧 Customized PIP Examples

1. Sales Role PIP

• Performance Issues:
  
  Failure to meet monthly sales targets for 3 months.
• Goals and Objectives:
  • Achieve 10 new client conversions per month for the next 60 days.
  • Schedule and complete at least 20 client calls per week.
• Action Plan:
  • Weekly sales coaching sessions.
  • Access to new CRM tools for tracking leads.
• Timeline:
  
  60 days with bi-weekly check-ins.
• Consequences:
  • Success: Eligible for performance bonuses.
  • Failure: Possible reassignment to a different role.

2. Customer Service Role PIP

• Performance Issues:
  
  Slow response time and unresolved customer complaints.
• Goals and Objectives:
  • Respond to customer queries within 2 hours during business hours.
  • Resolve 90% of customer complaints within 48 hours.
• Action Plan:
  • Training on customer service best practices.
  • Daily review of customer interactions with a supervisor.
• Timeline:
  
  30 days with weekly check-ins.
• Consequences:
  • Success: Retain position and receive recognition for improvement.
  • Failure: Potential formal warning or transfer to another team.

3. Technical Role PIP

• Performance Issues:
  
  Delayed project submissions and lack of familiarity with new software.
• Goals and Objectives:
  • Complete all project deliverables on time for the next 3 assignments.
  • Achieve proficiency in [New Software] within 45 days.
• Action Plan:
  • Attend software training sessions.
  • Weekly check-ins to review project progress.
• Timeline:
  
  45 days with bi-weekly check-ins.
• Consequences:
  • Success: Eligible for new project opportunities.
  • Failure: Possible reassignment or reduction in responsibilities.

IDPs in an Agile / Continuous Learning Era

In today’s fast-changing environment, it helps to treat your IDP as a living, adaptive plan rather than a static annual document. Here’s how you can make your IDP more agile:

• Break it into shorter cycles — Instead of planning for 12 months only, divide goals into quarterly or 6-month cycles.
• Frequent check & adjustment — At the end of each cycle, revisit goals, drop or reset those that no longer fit, and add new ones.
• Feedback loops built in — Use regular 1:1s or peer check-ins to review progress, obstacles, and changes.
• Dynamic reprioritization — As business needs shift, allow flexibility to reassign effort toward emergent skills or projects.
• Use a digital, collaborative tool — Maintain the plan in a shared document or platform so both employee and manager can comment, update, and track changes.
• Celebrate incremental wins — Recognize smaller achievements along the way, not just the big end goals.

This approach helps the IDP remain relevant, prevents goals from becoming stale, and encourages continuous growth rather than “set and forget.”

Examples of PIPs in Action

📈 Case Study 1: Sales Underperformance

Scenario:
Alex, a sales representative, struggled to meet monthly targets for three consecutive quarters. While he had excellent communication skills, he faced challenges managing follow-ups and converting leads, which severely impacted his overall performance.

PIP Details:
The company implemented a 60-day PIP to address Alex’s challenges. The plan included measurable targets like:

• 20% increase in lead conversion within 60 days.
• Follow-ups within 24 hours of initial contact.

To support Alex, the plan provided:

• Weekly mentorship with a senior sales manager to refine strategies.
• Weekly training sessions on objection handling and advanced sales techniques.
• Access to new CRM tools to streamline lead tracking and follow-ups.

Progress Review:
Bi-weekly check-ins were held to review progress, provide constructive feedback, and make adjustments as needed.

Outcomes:
By the end of the PIP, Alex exceeded expectations with a 30% improvement in lead conversion. The structured mentorship and training boosted his confidence, helping him retain his position and rebuild his credibility within the team.

✅ Key Takeaway:
This case highlights how a well-designed PIP with clear goals and strong support can turn underperformance into success.

🤝 Case Study 2: Improving Workplace Behavior

Scenario:
Emily, a project manager, frequently interrupted colleagues during meetings and made negative comments about their ideas. This behavior led to decreased collaboration and team morale.

PIP Details:
The company initiated a 45-day PIP focusing on improving Emily’s behavior. Specific goals included:

• Practicing active listening by not interrupting during meetings.
• Participating in conflict resolution training.
• Seeking feedback from team members on her communication improvements.

To support her, the company assigned a mentor to help Emily develop her interpersonal and leadership skills.

Progress Review:
Regular check-ins allowed Emily to discuss her progress and challenges while receiving constructive feedback.

Results:
Emily showed significant improvement by the end of the PIP. She actively participated in meetings with a more positive attitude and received favorable feedback from her team. Stronger working relationships and improved collaboration boosted overall team productivity.

✅ Key Takeaway:
This case demonstrates how a PIP can effectively address behavioral issues and promote personal growth within a team setting.

🏢 PIP in Action: Amazon’s Approach

At Amazon, underperforming employees are given a performance rating of “Needs Improvement.” They are placed on a program called “Focus,” which provides a development plan to help them get back on track.

If employees fail to improve during the Focus period, they move to a program called “Pivot.” At this stage, they have two choices:

1. Accept the PIP and commit to meeting the outlined improvement goals.
2. Leave the company.

✅ Key Takeaway:
Amazon’s approach shows how PIPs can serve as both a structured development tool and a final opportunity for employees to align with performance standards.

Final Thoughts

A well-crafted Performance Improvement Plan (PIP) is more than just a corrective tool — it’s an opportunity for growth and development. By setting clear goals, maintaining open communication, and providing actionable support, PIPs create a pathway for employees to succeed.

Customizing PIPs to address specific roles and challenges makes them more effective, while templates ensure consistency and clarity. When implemented thoughtfully, PIPs can transform underperforming employees into productive, engaged contributors.

By following best practices and learning from real-world examples, organizations can foster a culture of continuous improvement and support. In the end, a successful PIP benefits both employees and the organization, promoting growth, accountability, and long-term success.

What if the very system meant to boost employee performance is actually holding your company back? According to Deloitte, nearly half of executives believe their current performance review processes are fundamentally broken. Outdated methods not only fail to motivate employees but can actively contribute to burnout and disengagement.

The last few years have shown just how quickly businesses can adapt—shifting to remote and hybrid models, rethinking workflows, and embracing digital-first operations. Yet, performance review systems have lagged behind. A staggering 95% of HR professionals report that employee burnout is eroding retention efforts, according to Kronos research. Without modern tools, even the most innovative companies risk losing their top talent.

That’s where performance review software comes in. By providing structured, data-driven, and transparent evaluation processes, the right platform helps leaders turn reviews into opportunities for growth, recognition, and engagement.

This guide breaks down the top 10 performance review software solutions in 2025, exploring their features, benefits, and how they can transform your organization’s approach to performance management. Here’s what we’ll cover:

• Understanding Performance Review Software
  
• Why Performance Review Software Matters
  
• Essential Features to Look For
  
• The Leading Solutions in 2025

TL;DR – Top 10 Performance Review Software Solutions (2025 Guide)

1. 15Five – Emphasizes managerial effectiveness and team engagement
2. Leapsome – Integrates OKRs, feedback, and learning in a unified platform
3. Reflektive – Excels in real-time feedback and engagement monitoring
4. PerformYard – Data-driven platform for customizable review processes
5. Betterworks – Goal-oriented tool with actionable insights and feedback loops
6. Lattice – Comprehensive platform for reviews, engagement, and development
7. 7Geese/Paycor – Integrated HCM with OKRs and coaching capabilities
8. ClearCompany – Combines reviews, hiring, and workforce planning
9. Small Improvements – Streamlined solution for continuous feedback and reviews
10. Engagedly – AI-powered talent management with comprehensive review features

What is Performance Review Software?

Performance review software is a digital tool that helps organizations manage, track, and improve employee performance. Instead of relying on outdated annual appraisals, it enables continuous feedback, goal alignment, and fair evaluations.

How It Helps

• Streamlines Reviews – Automates performance cycles, from scheduling and reminders to collecting feedback and ratings.
  
• Encourages Continuous Feedback – Supports regular check-ins and 360° feedback so employees receive timely guidance.
  
• Aligns Goals – Connects individual objectives with company priorities, ensuring everyone works toward shared outcomes.
  
• Reduces Bias – Provides structured evaluation methods, rating scales, and calibration tools to ensure fairness.
  
• Supports Growth – Identifies skill gaps, training needs, and development opportunities for employees.
  
• Boosts Retention – Engaged employees who feel recognized and supported are more likely to stay and thrive.
  

In short, performance review software turns evaluations into a meaningful process—helping organizations build stronger teams, improve engagement, and drive long-term success.

Top 10 Performance Review Systems in 2025

Successful software implementation creates positive organizational ripple effects. It aligns workforce efforts with business goals while simplifying employee engagement and collaboration processes.

As numerous organizations advance toward digitalizing and modernizing their review systems, the following employee performance review software list will assist in selecting appropriate tools that match organizational needs and objectives.

1. Engagedly

Engagedly is an AI-powered talent management platform designed to help organizations build high-performing, people-first cultures. At its core is Marissa AI, an Agentic AI layer that automates repetitive HR tasks, delivers real-time insights, and empowers HR leaders, managers, and employees to focus on strategic, impactful work.

Built around the E3 framework—Engage, Enable, Execute—Engagedly seamlessly blends performance reviews, employee engagement, development, and recognition into one unified platform. From OKRs and 360-degree feedback to skill development and cultural alignment, every feature is designed to drive measurable outcomes.

What Sets Engagedly Apart:

• Agentic AI Capabilities: Role-based AI agents handle tasks like onboarding, feedback nudges, learning recommendations, meeting summaries, and engagement analysis
• Scalable & User-Friendly: Intuitive for both employees and HR teams, adaptable across organizations of all sizes
• Proven Impact: Companies report 2.5× faster goal alignment, 60% reduction in review cycle time, and over 30% improvement in employee development completions

Key Solutions Offered:

• OKR & performance review consulting
• Comprehensive performance reviews & 360 feedback
• OKR alignment, goal setting & tracking
• Continuous 1:1 check-ins & project reviews
• Leadership development & succession planning
• Employee engagement surveys & analytics
• Personalized learning & skill-building paths
• Streamlined onboarding workflows
• DEI & cultural alignment initiatives
• AI-driven talent insights & recommendations

2. 15Five

15Five is a technology-powered platform offering employee engagement, continuous performance reviews, and managerial effectiveness. The solution combines software, education, and community resources to develop effective managers and enhance employee performance.

Solutions offered by 15Five:

• Boosting Engagement Levels
• Enhancing Manager Effectiveness
• Remote Team Development
• Organizational Success Alignment
• People Development Programs

3. Leapsome

This software delivers continuous performance review cycles and personalized learning through features including OKR management, performance evaluations, employee engagement surveys, feedback systems, and recognition programs. It assists in aligning workforce efforts with organizational objectives.

Solutions offered by Leapsome:

• Goals and OKR management
• 1:1 and team meeting facilitation
• Personalized learning and development paths
• Engagement surveys with real-time analytics
• Development frameworks for employee advancement

4. Reflektive

Reflektive is a comprehensive performance evaluation software that supports business growth through continuous improvement processes. The platform enhances productivity through constructive employee engagement and drives growth via high-performance teams.

Solutions offered by Reflektive:

• Real-time feedback systems
• Quick and easy employee recognition
• Multiple user tagging capabilities
• Performance and talent calibration
• Employee engagement measurement through surveys

5. PerformYard

PerformYard is a scalable performance review platform providing intelligent workforce insights through data-driven features. It facilitates performance evaluations, frequent check-ins, real-time feedback, and organization-wide input collection.

Solutions offered by PerformYard:

• Managing qualitative, quantitative, individual, and team OKRs
• Supporting upward, downward, lateral, and external reviews
• Comprehensive performance tracking and analysis

6. Betterworks

Betterworks helps enterprises scale performance by providing intuitive and directional insights. This performance review tool creates vision through appropriate goal setting, reviews, and continuous employee feedback. Managers utilize features like reviews, check-ins, goal management, and continuous feedback for performance enhancement.

Solutions offered by Betterworks:

• Goal deployment and progress tracking
• Individual progress monitoring
• Clear visualization dashboards
• Intelligent performance insights gathering
• 1:1 feedback mechanisms

7. Lattice

Lattice provides engaging features for enterprises while supporting employee growth and development. The software uses intelligent methodologies to combine performance reviews, employee engagement, and development into one comprehensive solution.

Solutions offered by Lattice:

• OKR and goal management systems
• Continuous performance tracking through 1:1 reviews, feedback, and recognition
• Actionable people insights
• Continuous employee development through growth planning

8. 7Geese/Paycor

This human capital management tool offers comprehensive services including HR & payroll management, talent management, workforce management, and employee experience enhancement. It builds engaging and collaborative cultures to boost organizational performance.

Solutions offered by 7Geese/Paycor:

• 1:1 and feedback tools
• Automated workflows eliminating repetitive tasks
• Customizable coaching session dashboards
• OKRs and goal management systems

9. ClearCompany

ClearCompany provides a platform combining recruitment, onboarding, performance reviews, and workforce planning in one comprehensive system. It offers solutions helping organizations develop and nurture talent for enhanced performance.

Solutions offered by ClearCompany:

• Workforce planning and analytics
• Employee onboarding processes
• Employee engagement tools and surveys
• Comprehensive performance review systems

10. Small Improvements

Small Improvements is a lightweight performance review platform built for growing teams. Used by companies like Duolingo, SoundCloud, and Zapier, it fosters cultures of continuous feedback, alignment, and development.

Key Features:

• Customizable performance reviews & 360° feedback
• Lightweight goals & objectives setting
• Real-time feedback & recognition systems
• 1:1 meeting agendas & notes
• Pulse surveys & engagement insights
• Integrations with BambooHR, Slack, and Google

Ideal for companies with 10–1350 employees, Small Improvements offers flexible, user-friendly toolkits to improve performance and employee experience.

Importance of Performance Review Software

Performance review software plays a critical role in aligning people, processes, and strategy. Its core purpose is to synchronize leadership, management, employees, and organizational resources with business objectives. By setting clear performance metrics and tracking progress, leaders can identify potential challenges early and respond proactively—ensuring the organization stays on course toward growth.

Modern approaches, such as Continuous or Agile Performance Reviews, go beyond annual evaluations. They help managers identify skill gaps in real time, provide targeted coaching, and build a more productive workforce through mentorship and training. In today’s competitive landscape, this shift is no longer optional—organizations that fail to evolve risk disengagement, higher turnover, and missed opportunities for improvement.

Key Benefits of Performance Review Software

1. Enhanced Employee Engagement and Productivity

According to Gallup, 85% of employees worldwide are disengaged at work, costing businesses trillions in lost productivity. Disengaged employees are less motivated, less innovative, and more likely to leave.

Performance review software helps combat this by fostering ongoing conversations between employees and managers. For example, a retail company could use monthly check-ins to recognize top performers, address workload concerns, and align tasks with team goals. This creates a culture of trust, accountability, and recognition, where employees feel valued and motivated to perform at their best.

2. Employee Skill Development and Career Growth

A LinkedIn Workplace Learning Report found that 94% of employees would stay longer with companies that invest in their learning and development. Younger workers, especially Gen Z, expect continuous growth opportunities, not just annual reviews.

Performance review platforms make this possible by linking reviews to learning programs, mentoring initiatives, or stretch assignments. For example, a tech firm could identify that a junior developer shows leadership potential during review cycles and then create a tailored development plan—including leadership training and mentorship opportunities. This not only boosts employee performance but also builds a pipeline of future leaders.

3. Improved Communication and Collaboration

Effective communication is a hallmark of high-performing teams. McKinsey research shows that improved communication can raise productivity by 20–25%, while CMSWIRE reports that 85% of employees now juggle multiple devices for work.

Features of Top Performance Review Software

When selecting performance review software, the goal is clear: simplify evaluation, boost engagement, and align employee growth with organizational objectives. The right solution should automate manual tasks, reduce errors, and provide leaders with meaningful insights. While many platforms offer partial solutions, Engagedly stands out as a complete, future-ready performance review system.

Key Features to Look For (and How Engagedly Delivers Them)

1. Continuous Feedback
Modern performance management isn’t about once-a-year check-ins—it’s about ongoing conversations. Engagedly enables managers and employees to share continuous, real-time feedback, helping identify performance gaps early and keeping projects on track without surprises.

2. 360-Degree Feedback
True performance insight comes from multiple perspectives. Engagedly’s 360° feedback feature collects input from peers, managers, and direct reports, offering employees a holistic view of their performance and work relationships. This unbiased approach helps build trust and accountability across teams.

3. Simple, Automated Experience
Engagedly’s intuitive design makes the process seamless. Automated reminders, customizable dashboards, and easy-to-use surveys eliminate delays and administrative bottlenecks, freeing HR leaders to focus on strategy rather than paperwork.

4. Advanced People Analytics
With Engagedly, performance reviews go beyond feedback. Robust analytics highlight workforce trends, identify top talent, and support smarter decisions in areas like succession planning and skill development. Leaders gain a data-driven edge in shaping their teams’ future.

5. Social Performance Reviews
Engagedly fosters connection in hybrid and remote workplaces through its social features. Employees can request real-time feedback, share ideas, and celebrate wins openly—bridging gaps caused by distance and strengthening collaboration.

6. Recognition and Rewards
Recognition drives retention. Engagedly integrates gamified recognition tools so employees can celebrate each other’s contributions. This boosts morale, strengthens engagement, and helps companies retain their top talent.

7. SMART Goal Setting
Clear goals fuel productivity. Engagedly enables managers and employees to set and track SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals in real time. This ensures clarity, alignment, and accountability at every level.

8. Integrated Learning & Development
Performance reviews should lead to growth. Engagedly connects seamlessly with learning modules, enabling managers to assign courses or training plans directly from review outcomes. Employees can upskill while organizations build stronger future leaders.

9. Customization, Security, and Integration
Every organization is unique. Engagedly offers customizable modules, enterprise-grade security, and smooth integration with existing HR tech stacks—making it a flexible, reliable choice for companies of all sizes.

Why Choose Engagedly?

While many platforms promise better performance reviews, Engagedly delivers a complete ecosystem of performance, learning, and engagement tools—all in one place. From AI-powered insights to continuous feedback loops, Engagedly empowers organizations to build high-performing, future-ready workforces.

If your goal is to transform performance management into a driver of engagement, growth, and retention, Engagedly is the best option to make it happen.

Concluding Thoughts

In today’s rapidly evolving workplace, traditional performance reviews no longer meet the needs of agile, growth-driven organizations. Businesses require systems that provide continuous feedback, actionable insights, and personalized development pathways—all while aligning employees with strategic goals.

This is where AI-powered performance review software makes the difference. By leveraging advanced analytics and machine learning, platforms like Engagedly deliver unbiased feedback, identify hidden performance patterns, and provide managers with intelligent recommendations for coaching and talent development. AI transforms performance reviews from a reactive process into a proactive strategy for engagement and retention.

With features like 360° feedback, SMART goal tracking, real-time recognition, and integrated learning, Engagedly goes beyond basic evaluations to create a holistic performance ecosystem. Its AI-driven insights empower leaders to make data-informed decisions, minimize bias, and unlock the full potential of every employee.For organizations that want to move beyond outdated reviews and embrace the future of performance management, Engagedly offers the ideal blend of people-first design and AI innovation. It’s more than software—it’s a strategic partner in building a high-performing, future-ready workforce.