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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 Outdated methods not only fail to motivate employees but can actively contribute to burnout and disengagement.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)
15Five – Emphasizes managerial effectiveness and team engagement
Leapsome – Integrates OKRs, feedback, and learning in a unified platform
Reflektive – Excels in real-time feedback and engagement monitoring
PerformYard – Data-driven platform for customizable review processes
Betterworks – Goal-oriented tool with actionable insights and feedback loops
Lattice – Comprehensive platform for reviews, engagement, and development
7Geese/Paycor – Integrated HCM with OKRs and coaching capabilities
ClearCompany – Combines reviews, hiring, and workforce planning
Small Improvements – Streamlined solution for continuous feedback and reviews
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 Instead of relying on outdated annual appraisals, it enables continuous feedback, goal alignment, and fair evaluations.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.
Performance management tools play a pivotal role in enhancing employee performance and overall organizational productivity. These tools facilitate continuous feedback, goal setting, performance reviews, and employee engagement, which are crucial for maintaining a motivated and high-performing workforce. By implementing robust performance management systems, companies can align individual objectives with organizational goals, identify and address performance gaps, and foster a culture of continuous improvement and development.
Why Companies Might Seek Alternatives to 15Five
While 15Five is a widely recognized performance management tool known for its user-friendly interface and comprehensive features, companies might seek alternatives for several reasons. Some organizations may find that 15Five’s features do not fully align with their specific needs or industry requirements. Others may be looking for a more cost-effective solution, better integration capabilities with existing systems, or advanced analytics and reporting functionalities. Additionally, as the market for performance management tools evolves, new players with innovative features and unique approaches continue to emerge, offering competitive alternatives to established solutions like 15Five.
This article aims to provide an overview of the best alternatives to 15Five, helping companies identify the right performance management tool that meets their unique needs. We will evaluate each alternative based on key criteria such as features, pricing, user experience, and unique selling points, ensuring a comprehensive analysis to aid in the decision-making process.
Criteria for Evaluation
Features
Key functionalities are essential in performance management tools to ensure they meet the diverse needs of an organization. Important features include:
Performance Reviews: Regular and systematic assessments of employee performance.
Goal Setting and Tracking: Tools for setting, monitoring, and achieving individual and team goals.
Feedback Mechanisms: Continuous feedback options to facilitate communication between employees and managers.
Employee Engagement: Features that promote engagement and monitor employee satisfaction.
Analytics and Reporting: Advanced reporting tools to analyze performance data and make informed decisions.
Integration Capabilities: Ability to seamlessly integrate with other HR and productivity tools.
User Experience
Ease of use and user interface are vital for ensuring widespread adoption and effective utilization of the tool. Key aspects include:
Intuitive Design: User-friendly interface that simplifies navigation and reduces the learning curve.
Accessibility: Availability of mobile and web applications for easy access.
Customization: Ability to tailor the tool to meet specific organizational needs and preferences.
Support and Training: Availability of customer support, training resources, and documentation.
Unique Selling Points (USPs)
What sets each alternative apart from the competition is crucial in identifying the right fit for an organization. USPs might include:
Innovative Features: Unique functionalities that address specific challenges or provide distinct advantages.
Market Position: Reputation and credibility in the performance management space.
Customer Reviews: Positive feedback and testimonials from existing users.
Differentiation: How the tool stands out in terms of technology, approach, or user experience.
By evaluating 15Five alternatives based on these criteria, this article aims to provide a clear and comprehensive guide to help organizations choose the most suitable performance management tool for their needs.
Top 10 Excellent Alternatives to 15Five You Should Consider
Here are 10 excellent alternatives to 15Five to consider before choosing performance management software:
Engagedly is a comprehensive employee experience platform designed to address all aspects of talent management, providing organizations with the tools they need to overcome common challenges. Mid-market organizations often struggle with issues such as maintaining consistent performance evaluations, aligning individual goals with organizational objectives, fostering employee engagement, and supporting continuous learning and development.
Engagedly seamlessly integrates performance management, employee engagement, and learning management into one robust solution, enhancing employee performance and fostering a culture of continuous improvement.
Key Features:
Performance Reviews: Comprehensive tools for conducting regular performance evaluations, ensuring consistent feedback and development. This feature helps mid-market organizations maintain transparency and fairness in performance assessments, which is crucial for employee satisfaction and retention.
Goal Setting: Facilitates setting, tracking, and achieving individual and team goals. By aligning employee efforts with organizational objectives, this feature helps mid-market companies overcome the challenge of ensuring that all employees are working towards the same strategic goals.
Employee Engagement: Advanced tools to measure and improve employee engagement. Engagedly provides mid-market organizations with insights into employee satisfaction and motivation, helping to address disengagement and turnover issues.
Feedback: Continuous feedback mechanisms enhance communication and development between employees and managers. This feature helps mid-market companies create a feedback-rich culture, which is essential for employee growth and organizational improvement.
Learning Management: An integrated learning management system supports ongoing employee development and skill enhancement. This is particularly beneficial for mid-market organizations that need to upskill their workforce efficiently without investing in separate training platforms.
360-Degree Feedback: Comprehensive feedback from peers, managers, and direct reports provides a holistic view of employee performance, promoting well-rounded development and growth.
OKRs (Objectives and Key Results): Tools for setting, tracking, and aligning objectives and key results, ensuring all employees work towards common organizational goals.
Engagedly offers a user-friendly interface with easy navigation, ensuring a smooth and intuitive user experience. The platform is accessible via a mobile app, allowing employees and managers to access essential features on the go, enhancing flexibility and convenience. The intuitive design reduces the learning curve and encourages widespread adoption across the organization.
Unique Selling Point (USP):
Engagedly stands out as a versatile solution for organizations looking to improve performance, employee development, growth, and engagement. Its comprehensive capabilities in performance management, learning management, and employee engagement make it a powerful tool for fostering a high-performance culture and driving organizational success. For mid-market organizations, Engagedly addresses critical challenges such as maintaining consistent evaluations, aligning goals, fostering engagement, and supporting continuous learning, making it an indispensable asset for sustained growth and success.
2. Lattice
Lattice is a performance management and employee engagement platform that focuses on continuous feedback and employee development. It helps organizations drive better performance through goal setting, performance reviews, and engagement surveys.
Key Features:
Performance Reviews: Structured performance evaluations to assess and develop employee performance.
OKRs: Tools for setting and tracking objectives and key results.
Feedback: Continuous feedback options to facilitate regular communication between employees and managers.
Employee Engagement Surveys: Tools to measure and improve employee engagement and satisfaction.
User Experience: Lattice is known for its intuitive interface and robust analytics, making it easy for users to navigate and gain insights. The platform’s design focuses on simplicity and effectiveness, ensuring a positive user experience.
USP: Lattice’s strong focus on employee development and continuous feedback sets it apart, making it an excellent choice for organizations that prioritize ongoing employee growth and improvement.
3. Betterworks
Betterworks is a performance management platform that emphasizes goal alignment and achievement. It provides tools for setting and tracking goals, conducting performance reviews, and facilitating continuous performance management.
Key Features:
Goal Setting and Tracking: Tools to set, monitor, and achieve individual and organizational goals.
Feedback: Continuous feedback mechanisms to support employee development.
Continuous Performance Management: Tools to ensure ongoing performance tracking and improvement.
User Experience: Betterworks features a clean and user-friendly interface that integrates seamlessly with other tools. Its design focuses on ease of use, ensuring a smooth user experience.
USP: Betterworks stands out for its emphasis on goal alignment and achievement, helping organizations ensure that their employees’ goals are aligned with overall business objectives.
4. Culture Amp
Culture Amp is an employee engagement and performance management platform that provides data-driven insights to improve company culture. It offers tools for engagement surveys, performance reviews, goal setting, and feedback.
Key Features:
Employee Engagement Surveys: Tools to measure and enhance employee engagement.
Performance Reviews: Comprehensive tools for conducting performance evaluations.
Goal Setting: Facilitates setting and tracking individual and team goals.
Feedback: Continuous feedback mechanisms to support employee development.
User Experience: Culture Amp features a user-friendly design that provides actionable insights, making it easy for users to navigate and make informed decisions.
USP: Culture Amp’s data-driven insights for improving company culture make it a valuable tool for organizations looking to enhance employee engagement and performance through actionable data.
5. Reflektive
Reflektive is a performance management platform that focuses on real-time feedback and goal management. It provides tools for performance reviews, goal setting, feedback, and check-ins to drive continuous improvement.
Key Features:
Performance Reviews: Structured tools for conducting regular performance evaluations.
Goal Management: Tools for setting and tracking individual and team goals.
Feedback: Real-time feedback mechanisms to facilitate regular communication and development.
Check-Ins: Regular check-ins to monitor progress and address any issues promptly.
User Experience: Reflektive features a modern and intuitive interface that ensures ease of use. The platform’s design focuses on simplicity and effectiveness, providing a positive user experience.
USP: Reflektive’s real-time feedback and goal management capabilities set it apart, making it a valuable tool for organizations that prioritize continuous improvement and timely feedback.
6. Leapsome
Leapsome is a comprehensive performance management and learning platform designed to enhance employee development and organizational performance. It integrates various functionalities to provide a seamless experience for managing performance reviews, goal setting, and continuous feedback.
Key Features:
Performance Reviews: Structured and customizable performance review processes.
Goal Setting: Tools for setting, tracking, and achieving individual and team goals.
Feedback: Continuous feedback mechanisms to foster ongoing development and communication.
Learning Management: Integrated learning management system to support employee training and development.
User Experience: Leapsome features an intuitive platform with customizable workflows, making it easy for users to tailor the system to their specific needs. The user-friendly interface ensures a smooth experience for both employees and managers.
USP: Leapsome stands out for its integration of performance management and learning, providing a holistic approach to employee development and organizational growth.
7. 7Geese
7Geese is a performance management platform that focuses on OKR-driven performance management. It provides tools for setting and tracking Objectives and Key Results (OKRs), conducting performance reviews, and facilitating feedback and recognition.
Key Features:
OKRs: Tools for setting, tracking, and achieving Objectives and Key Results.
Feedback: Continuous feedback mechanisms to support employee development.
Recognition: Features to recognize and reward employee achievements.
User Experience: 7Geese features a clean interface with easy navigation, ensuring a positive user experience. The platform is designed to simplify the performance management process and enhance user engagement.
USP: 7Geese’s strong focus on OKR-driven performance management sets it apart, making it an excellent choice for organizations that prioritize goal alignment and achievement.
8. Trakstar
Trakstar is a performance management platform that provides tools for performance reviews, goal setting, feedback, and employee engagement. It aims to enhance organizational performance through comprehensive reporting and analytics.
Key Features:
Performance Reviews: Tools for conducting regular and structured performance evaluations.
Goal Setting: Features to set, track, and achieve individual and team goals.
Feedback: Continuous feedback mechanisms to facilitate communication and development.
Employee Engagement: Tools to measure and improve employee engagement.
User Experience: Trakstar features a simple and effective design, making it easy to navigate and use. The platform provides comprehensive reporting and analytics to support informed decision-making.
USP: Trakstar’s extensive reporting and analytics capabilities make it a valuable tool for organizations seeking in-depth insights into their performance management processes.
9. Zoho People
Zoho People is a comprehensive HR management platform that includes performance management features. It integrates seamlessly with other Zoho products, providing a unified solution for managing HR and performance processes.
Key Features:
Performance Reviews: Tools for conducting regular performance evaluations.
Goal Setting: Features to set, track, and achieve goals.
Feedback: Continuous feedback mechanisms to support employee development.
HR Management: Comprehensive HR management features, including employee data management, leave tracking, and more.
User Experience: Zoho People provides a user-friendly interface that integrates with other Zoho products, ensuring a seamless experience for users. The platform’s design focuses on ease of use and efficiency.
USP: Zoho People’s comprehensive HR suite with integrated performance management features makes it a versatile solution for organizations seeking a unified HR and performance management platform.
10. BambooHR
BambooHR is an all-in-one HR management platform that includes performance management features. It provides tools for performance reviews, feedback, goal setting, and employee data management.
Key Features:
Performance Reviews: Structured tools for conducting performance evaluations.
Feedback: Continuous feedback mechanisms to support employee development.
Goal Setting: Features to set, track, and achieve individual and team goals.
Employee Data Management: Comprehensive tools for managing employee data, leave tracking, and more.
User Experience: BambooHR features an easy-to-use interface that simplifies HR and performance management processes. The platform is designed to be intuitive and accessible, ensuring a positive user experience.
USP: BambooHR’s all-in-one HR and performance management platform makes it a valuable tool for organizations looking for a comprehensive solution to manage their HR and performance processes.
Conclusion
Performance management platforms offer a wide spectrum of options, each catering to diverse organizational needs and preferences. From tools emphasizing advanced analytics and seamless integration capabilities to those focusing on real-time feedback, goal alignment, or comprehensive employee engagement, the choices are plentiful. By carefully evaluating these alternatives based on criteria such as functionality, user experience, and innovative features, companies can select a platform that best supports their unique goals and operational dynamics. This strategic decision not only enhances organizational effectiveness but also fosters a culture of continuous improvement and employee development, driving sustained success in today’s competitive landscape.
Imagine having a clear dashboard that shows exactly how well your team is performing and whether you’re on track to achieve your business goals—just like a GPS guiding you to success. That’s exactly what a well-designed KPI system offers.
By focusing on specific goals and using KPIs (Key Performance Indicators) to measure progress, organizations can ensure they’re moving in the right direction and scaling effectively.
KPIs help quantify employee productivity and ensure alignment with business objectives, making them essential tools for driving performance. In this article, we’ll guide you through developing a KPI system for performance reviews, setting key metrics, and implementing them to build high-performing teams.
Why KPI Performance Review Matters More Than Ever in 2025
In 2025, performance reviews are evolving—teams that focus feedback on strengths are 8.9% more profitable and 12.5% more productive than those that emphasize weaknesses (SelectSoftware Reviews). Yet, despite this potential, trust in review systems remains low—only 6% of organizations believe their process effectively uses data while also building trust (Deloitte).
This is why modern KPI performance reviews must go beyond metrics—they must combine data-driven insights with meaningful, human-centered feedback to create reviews that employees trust and act on.
What are the KPIs for Employees?
KPIs, or Key Performance Indicators, are just a fancy way of saying measurable goals that show how well employees are helping the company hit its targets. They’re used to track performance across different departments—whether it’s sales, marketing, HR, or customer service—and help ensure that everyone is contributing to the overall success of the business.
Take a sales team, for example. One of their KPIs might be the number of new clients they bring in each month. If the goal is 20 new clients, and they’re only hitting 15, it’s a clear sign that something needs adjusting, whether it’s offering more training or tweaking the sales pitch.
KPIs can vary depending on the department. In sales, it could be revenue growth; in HR, it might be something like “time-to-hire.” If it’s taking 45 days to fill a position when the industry average is 30, that KPI can highlight the problem and prompt HR to streamline the hiring process.
What makes KPIs so important is that they give you a quick snapshot of how things are going. They show you where you’re doing well and where there’s room for improvement. You can even set individual KPIs to measure personal performance and see where employees might need some extra support or training.
In short, KPIs are like a report card for your business, helping you keep track of what’s working and what needs a bit of fine-tuning.
Trending HR Performance Metrics in 2025
When selecting KPIs for performance reviews, organizations are prioritizing metrics that align with both business outcomes and employee engagement.
Top trending metrics include:
Goal Achievement Rate – Tracks progress against individual or team objectives.
Work Quality – Assesses accuracy, attention to detail, and adherence to standards.
Productivity Efficiency – Measures output relative to resources and time.
Engagement Scores – Monitors motivation, satisfaction, and commitment to the organization.
Organizations that emphasize continuous feedback—rather than only annual reviews—report 31% lower turnover and higher engagement when managers conduct frequent check-ins.
Artificial Intelligence is reshaping how KPI performance reviews are conducted.
Better Articulation of Achievements – AI tools help employees describe their accomplishments more clearly.
Bias Reduction – Algorithms can minimize unconscious bias, especially critical for diversity and equity in evaluations.
Adoption & Preference – 75% of knowledge workers already use AI tools, and 89% of Oracle employees preferred AI-assisted reviews when introduced (Business Insider).
By integrating AI into KPI reviews, companies can speed up the process, improve fairness, and support more objective decisions—all while maintaining a human oversight layer.
Examples of KPI Reviews for Employee Performance
There are a variety of Key Performance Indicators that can measure employee performance. Below are four examples:
KPI for Engineering
The KPI of Engineering is typically measured as a Cost Performance Indicator (CPI). Engineering KPIs are like analytics and tell engineers how they’re doing at a specific moment. A product may have one or several KPIs depending on your situation and where your company is in its life cycle.
Some of the important engineering KPI metrics are given below:
Engineering-on-Time Delivery
Cost Performance Indicator (CPI)
Schedule Performance Indicator (SPI)
This will tell you a lot about key performance indicators (KPIs) that you can use when assessing how well your company’s engineering department is functioning.
KPI for Sales
A Sales Key Performance Indicator (KPI) or metric can act as a performance monitoring system often used by the sales team and the company’s top management to track the effectiveness of relevant sales strategies, tactics, and activities. With these indicators or metrics, it’s possible to optimize sales performance, funnel, and cycle length.
Some of the Important Sales KPI metrics include:
Earnings before taxes, depreciation, and amortization (EBITDA)
Profit before taxes (how much revenue the company retains after deducting the production cost )
Profit after taxes (how much revenue the company owns after paying taxes, expenses, etc.)
Based on these KPI metrics, companies set their sales strategies and further course of action.
KPI for HR
An HR KPI is a measurable value that helps track pre-defined organizational goals of human resources management. HR departments use KPIs to optimize recruitment processes, employee engagement programs, opportunities for professional development, etc.
Some of the significant examples of HR KPIs include:
The rate of absenteeism (to determine how much productivity has been lost due to employee sick or personal days)
Attrition rate
Cost Per employee
KPI for Product Design
Every business owner has a set of data points upon which the business is evaluated upon, especially in the case of Product Design. It’s essential to track these KPIs for many reasons, but the main one is assessing if products deliver effectively to get the expected outcomes or results.
Per-project lead time The time it takes for a project to go from request to completion is lead time.
Estimated vs. Actual Project Time
Client Satisfaction Ratings. Client satisfaction ratings can be measured with a short post-project survey.
Trends Shaping KPI Performance Reviews
As 2025 progresses, KPI-driven reviews are becoming more continuous, human-centered, and coaching-focused:
Performance as an Ongoing Conversation – Annual reviews are being replaced by micro-goals and nudges throughout the year.
Managers as Coaches – The role of managers is shifting from “judge” to “coach,” backed by peer insights and feedback prompts rather than top-down evaluation.
How Should You Evaluate the Performance of Your Employees?
Evaluating employee performance goes beyond just looking at KPIs. Here are a few important pointers to keep in mind when reviewing an employee’s performance:
Don’t Rely Solely on KPIs: While KPIs give you measurable insights, they shouldn’t be the only factor. It’s crucial to consider other aspects like job experience, level, and past performance to get a more complete picture.
Balance Qualitative and Quantitative Feedback: Numbers are important, but they don’t tell the whole story. A well-rounded performance review includes both quantitative metrics (like KPIs) and qualitative feedback (such as communication skills, teamwork, and problem-solving abilities).
Collaborate with Employees: Instead of just setting annual targets and waiting until the end of the year, work with employees throughout the review period. Involving them in the process gives them clarity on where they can improve and helps them feel more engaged.
Consider Individual Differences: Each employee is unique, and their strengths may vary. One-size-fits-all evaluations don’t work. Tailor the performance review process to reflect the employee’s specific role, skills, and growth trajectory.
Look Beyond the Numbers: KPIs show progress toward goals, but they don’t explain how someone can improve. A thorough evaluation digs into the why behind the numbers and provides actionable insights.
Context Matters: Different roles and organizations place varying weight on different metrics. Be sure to adjust the emphasis on specific KPIs or qualitative factors based on the job and the company culture.
What Makes a Great KPI Review?
Think of KPIs like a fitness tracker for your business. If you’re not tracking those steps (or sales, or project completions), how will you know whether you’re crushing it or need to pick up the pace?
Here’s what makes a good KPI review:
Just like you wouldn’t use a fitness tracker that only gives you vague hints (“maybe you walked today”), a good KPI review needs to be clear and precise.
Measurable: The KPI should provide clear, quantifiable data so you can easily gauge progress. If you can’t measure it, you can’t manage it.
Relevant: The KPI must be directly tied to the company’s objectives. It should reflect a critical part of the business goal, not just a general performance metric.
Timely: A good KPI allows for real-time or frequent assessment. This ensures that performance is tracked regularly and can be adjusted before it’s too late.
Actionable: If a KPI shows that performance is off track, it should provide insights into what needs to change. A good KPI doesn’t just point out problems—it helps create solutions by being adaptable and providing actionable insights.
How to Create a KPI System for Performance Reviews?
KPI is often interpreted as a critical performance indicator. As a leader, it’s in your best interest to find out how well your company or team is performing. The effectiveness of using various KPIs is driven by how much they can affect the business outcomes.
The right KPI system for performance review helps you align your business goals in the right direction, and it’s essential to make sure the KPIs are related to performance metrics.
1. To the point and be specific
A KPI must be specific and denote an actual value that can be measured to track the performance metrics. Like “Customer Satisfaction to be increased” has to be replaced by “Customer Satisfaction survey should result in a 10% increase by the end of Q3”.
2. Measurable
A good Recipe needs quality ingredients like the key performance indicator (KPI) itself should be specific, measurable, and attainable. The best point in time to define what those KPIs are is when discussing your initial goals and objectives.
A perfectly measurable KPI for employees is always better than those which are not specific and measurable.
3. Relevant for the role
It is important to note that all KPIs should be aligned with a larger key business objective. When setting Key Performance Indicators for a team, it’s essential to ensure that each employee is working on an appropriate set of KPIs.
It’s essential to ensure that each employee is working on an appropriate set of KPIs. If the sales team has KPIs unrelated to their role and the sales process, it will be hard for them to stay motivated and work on the correct metrics. Each employee has to be assigned proper metrics appropriate for them and to help them understand how to achieve them.
4. Specific and time-bound
A realistic amount of time has to be set to measure the progress of a specific KPI for employee performance and a KPI system for performance reviews.
For example, you have set a goal to achieve a recurring product sale of 30% for every month. Here you have set a specific time of one month for achieving a specific goal.
Setting a specific time limitation lets us measure a key parameter more effectively. Any need for improvement can be implemented quickly and effectively.
Implementing a KPI System for Performance
Developing and implementing KPI system performance are the final and most important objectives of the organization to analyze the health of the organization and check whether the business is running towards its actual desired direction.
As an essential tool to establish and implement a system of performance system, performance management, and KPIs is among the most critical performance systems to measure the efficiency and effectiveness of a company or an organization.
It is used to measure an entity’s performance level and then improve the business performance levels. Given that, an organization’s overall objectives should be the organizational health analysis and business direction analysis. The most crucial objective is to develop and implement the KPI system to monitor the performance and analyze the health of an organization.
To successfully implement and measure a KPI system for performance reviews, consider the following key steps:
Identify Key Areas to Evaluate: Determine which aspects of business performance you want to track and which parameters will be most relevant to your goals.
Set Clear Benchmarks: Establish the optimal targets or benchmarks for each KPI, ensuring they align with your overall objectives.
Compare Actual Performance to Targets: Regularly measure current performance against the goals you’ve set to assess progress and identify gaps.
Analyze Performance Trends: Review recent changes in performance to spot patterns, improvements, or declines.
Define Review Intervals: Set a consistent time interval for reviewing each KPI to ensure timely feedback and adjustments.
Conclusion
Data, when used effectively, can offer valuable insights and reduce uncertainty by providing a clear focus for improvement. In the same way, a well-implemented KPI system helps organizations track performance, understand workforce productivity, and identify areas for improvement.
With key performance indicators, both organizations and individuals can monitor progress and ensure alignment with broader business goals. For employees, knowing how their performance stacks up helps them refine their strategies and contribute more efficiently to company objectives.
When used thoughtfully, KPIs become a powerful tool for informed decision-making, boosting both individual and organizational performance. Ultimately, well-designed KPIs lead to smarter business decisions, improved productivity, and long-term success.
Conclusion
Q1: What’s the ROI on strength-based performance reviews? Teams focusing on strengths are 8.9% more profitable and 12.5% more productive (SelectSoftware Reviews).
Q2: Are KPI reviews still relevant in a fast-changing world? Absolutely—real-time KPIs like goal achievement and engagement, paired with continuous feedback, increase agility and accuracy.
Q3: Should we use AI in reviews? Yes—AI makes reviews fairer and more objective, but human oversight is critical to preserve nuance and trust.
Imagine a busy office atmosphere in which a group of people is gathered around a conference table to brainstorm futuristic solutions for the firm. Among them is Sarah, a marketing expert who reports to the project manager.
For some guidance on a professional issue, Sarah reports directly to the marketing director, bypassing the project manager in the hierarchy. This is the normal course of hierarchy in the organization, so how does this work? Let us dive into the obscurity of dotted-line reporting.
Dotted-line reporting is a concept within organizational structures in which an employee has two reporting relationships: a solid reporting line to a direct supervisor and a dotted line to another manager or leader. The solid line shows the primary reporting structure, while the dotted line refers to secondary or additional reporting connections outside the direct supervision line.
Dotted-line reporting has a significant contribution to developing teamwork through enhancing collaborative activities, facilitating knowledge-sharing, and promoting cross-functional teamwork within the business environment. It provides employees with the ability to be part of projects, initiatives, or teams that extend beyond their departments´ boundaries.
Why Dotted Line Reporting Matters More in 2025
The shift toward agile, hybrid, and matrix organizations requires more flexible leadership structures. Dotted line reporting enables teams to collaborate across departments, share expertise, and respond swiftly to changing market needs—all without adding rigid hierarchy. This structure enhances organizational flexibility and supports cross-functional alignment, which is essential for thriving in 2025.
What Is Dotted-Line Reporting?
Dotted-line reporting means that the employee ensures a continuous reporting line with their supervisor while having a second reporting relationship with another manager or leader. The secondary reporting system is identified with a dotted line on organizational charts, so it is called “dotted-line reporting.”
The two-level reporting relationship creates an environment where the employee can work on projects or initiatives that require inputs and views from more departments or functions. Even though the project duties fall under their direct supervisor’s authority, the project manager ensures the employee’s involvement in cross-functional areas through the dotted-line manager.
Through dotted-line reporting, organizations can utilize expert staff and promote teamwork and tactical alignment within creative and diverse groups. It ensures efficiency by reducing bureaucracy and silos and by encouraging everyone to participate in a wider effort beyond their specialized areas.
Dotted line reporting examples in various types of organizational structures:
Cross-Functional Projects: Take the example of a software development company, where the engineers are usually reporting to the head of engineering. On the other hand, when engineers tackle a new product launch, their relationship with a product manager may be dotted-line reporting. This method ensures a smooth interplay between engineering and product development teams.
Matrix Organizations: In a matrix organization, people have both solid-line and dotted-line reporting relationships. For example, an organization might have a marketing manager who reports directly to the head of marketing but has a dotted-line reporting relationship with a regional sales director for a particular campaign.
Shared Services Centers: In firms with shared service centers, employees can also have redline reporting relationships with both their department manager and the shared services center manager. This guarantees a balance between the activities of the shared support team and the separate departments.
Here are some common reasons for using dotted line management:
Dotted-line reporting promotes collaboration by enabling individuals to collaborate beyond organizational boundaries.
Organizations use dotted-line reporting to identify and employ specialists or experts who may be situated in diverse departments or teams. This helps the group benefit from the synergy of resources.
Dotted-line communication endows the organization with the ability to adapt quickly to changing market and business requirements and develop cross-functional teams to cope with specific opportunities or issues.
Benefits of Dotted-Line Reporting
1. Increased Efficiency & Expertise
Dotted-line reporting allows organizations to leverage skillsets across teams more effectively. By working in secondary reporting relationships, employees can contribute their specialized knowledge and expertise to projects or initiatives beyond their immediate departments.
For example, a marketing specialist with a dotted-line reporting relationship to a product development manager can provide valuable insights into customer preferences and market trends, enhancing the overall quality and effectiveness of new product launches.
Dotted-line reporting breaks down silos within organizations and fosters communication and collaboration across functional boundaries. When employees have secondary reporting relationships with managers outside their immediate teams, it facilitates knowledge-sharing and the exchange of ideas.
For instance, a software engineer with a dotted-line reporting relationship to a user experience (UX) designer can collaborate more effectively on interface design, ensuring that technical considerations align with user needs and preferences.
Dotted-line reporting streamlines project management, particularly for cross-functional projects that require input from multiple departments or teams. By assigning dotted-line reporting relationships to key project stakeholders, organizations can ensure clear accountability and coordination among diverse contributors.
For example, in a construction project involving architects, engineers, and contractors, each team member may have dotted-line reporting relationships to a project manager overseeing the entire project. This centralized oversight ensures that project milestones are met, resources are allocated efficiently, and potential bottlenecks are addressed promptly.
Challenges of Dotted-Line Reporting
1. Conflicting Priorities & Confusion
Managing multiple reporting lines can lead to conflicting priorities and confusion among employees. They may receive instructions or feedback from different managers, each with their own agenda or perspective. This can result in uncertainty about which tasks to prioritize or which direction to follow, potentially leading to inefficiencies and frustration.
2. Performance Evaluation & Accountability
Performance evaluation and accountability can become challenging in dotted-line reporting structures. Employees may receive feedback and performance reviews from both their solid-line and dotted-line managers, which can be confusing and may result in discrepancies in expectations or assessments. Additionally, determining responsibility for performance outcomes and addressing underperformance can be complex when multiple managers are involved.
3. Communication Breakdown & Micromanagement
In dotted-line reporting, communication breakdowns can occur if expectations, roles, and responsibilities are not clearly defined. Employees may feel overwhelmed by micromanagement if both their solid-line and dotted-line managers provide detailed instructions or closely monitor their work. This can stifle autonomy and creativity, leading to disengagement and reduced productivity.
Making Dotted-Line Reporting Work
1. Clear Roles & Responsibilities
To mitigate challenges, organizations must establish clear roles and responsibilities for both managers and employees involved in dotted-line reporting relationships. They must also define expectations, objectives, and areas of authority for each manager, ensuring that employees understand who to turn to for guidance on specific tasks or projects.
2. Open Communication & Collaboration
Foster open communication and collaboration among all parties involved in dotted-line reporting. Encourage regular check-ins, team meetings, and project updates to facilitate information sharing and goal alignment. Create channels for feedback and discussion to address concerns and resolve conflicts proactively.
3. Performance Management Strategies
Develop performance management strategies that accommodate the complexities of dotted-line reporting. Implement joint performance reviews involving both solid-line and dotted-line managers to ensure consistency and fairness in evaluating employee performance. Establish clear performance metrics and objectives aligned with organizational goals, providing constructive feedback and support for professional development.
Employees are overloaded with competing priorities
There’s no clear purpose for introducing dual reporting lines
Summing Up
In conclusion, dotted-line reporting is a creative approach in an organization that allows flexibility and collaboration between different departments. Workers can report to more than one manager, stimulating work between different functional areas.
However, it can face challenges like confusion about power and responsibility. Therefore, establishing a good flow of information, clearly delegating roles, and fostering a supportive company culture is crucial to making the most of the dotted-line reporting system.
Frequently Asked Questions
Are there any alternatives to dotted-line reporting?
Yes, alternatives to dotted-line reporting include solid-line reporting, where employees have a single reporting relationship to one manager, and functional reporting, where employees report to managers within their specific functional area or department. Organizations may choose the reporting structure that best fits their unique needs and goals.
How does dotted-line reporting impact career growth and development?
Dotted-line reporting can provide employees with opportunities to gain exposure to different organizational areas, develop new skills, and expand their professional networks. By working on cross-functional projects or collaborating with colleagues from other departments, employees may enhance their career prospects and advancement opportunities within the organization.
Can dotted-line reporting be used in remote work environments?
Yes, dotted-line reporting can be effectively utilized in remote work environments by leveraging digital communication tools and platforms to facilitate collaboration and coordination between teams and managers. Clear communication channels, regular check-ins, and virtual meetings can help maintain alignment and accountability despite physical distance.
While managers commonly set growth objectives for their teams, crafting specific development goals for work and managers can markedly enhance their leadership skills, ultimately improving employee performance and satisfaction. A comprehensive grasp of the elements that contribute to a manager’s development goals is pivotal in maximizing employee potential. This article explores various professional development goals tailored for managers, offering insights into setting objectives that elevate employee productivity levels.
Development Goals for Managers–What is it and Why is it Required in 2025?
Development goals for work act as a guide for managers to create measurable and attainable objectives for their employees. To elaborate, the goals act as a beacon for a manager to set employees’ objectives. The objectives may help to bring about an improvement in their performance, aligned with the company’s plans.
Managers today are navigating an unprecedented leadership landscape—hybrid workforces, rapid AI integration, and shifting employee expectations. Yet, only 44% of managers have received formal training (Business Insider), even as global manager engagement continues to decline.
Research from Gallup shows that 70% of employee engagement is directly influenced by managerial quality. This means that developing managers is no longer a “nice-to-have”—it’s a strategic necessity for organizational health and retention.
According to Gartner, 75% of HR leaders say managers are overwhelmed, and 70% believe current development programs are falling short. In 2025, manager development is not just about improving performance—it’s about sustaining leadership resilience, agility, and trust in an era of constant change.
Key Factors that Lead to the Success of a Manager’s Development Plan
In every organization, managers strive hard for the growth of the company. Ideally, they want employees to operate at their maximum efficiency. To achieve optimum productivity, managers need to understand both development goals for work and their role in guiding employees toward success. These goals provide a clear roadmap for employees and managers alike.
In line with this, we have listed down certain key factors related to professional development goals for managers that they need to be cognizant of.
Clarity – Clarity of the goals helps managers to increase employee efficiency.
Measurable: Measurement of goal achievement helps to set new targets for the employees.
Achievable–When you set measurable, attainable goals for a manager, they will not only bring improvements in his performance but also help the manager overcome his limitations.
Timeline—Managers should be in sync with the project timeline so that team members can give their best to reach them, within the stipulated time.
Reward–When a goal is met, it is important to recognize the achievement and reward your employees. This boosts employees’ confidence and fosters future development.
12 Development Goals for Managers
A goal-oriented manager understands where he is headed. With goals in place, a manager understands exactly what he needs to do to accomplish them and how to guide his team in the right direction. Without further ado, let’s get started with 10 manager development goals. Following these goals may help managers boost employee confidence and increase their productivity.
1. Organize productive meetings
Managers conduct one-on-one employee meetings, organize team meetings, and oversee other group meetings. This means managers must have a thorough understanding of the types of meetings and points of discussion. Here are a few suggestions to help your managers conduct meetings effectively:
Setting pragmatic goals for employees
Establishing regular meeting schedules
Taking detailed notes about project progress
Specifying an action plan to reach the set target
Having constructive meetings can enhance employee enthusiasm as they get a sense that the company values their input.
Active listening signifies being open-minded to non-verbal signals or any form of employee concerns. Thus, managers need to develop active listening skills to not just hear what their team members say but also to understand them. Better listening skills will help managers to learn more from their teams. As a result, they will be able to handle problems effectively, understand the needs of their team, and become more efficient.
3. Employee development
Several employees want to take on leadership positions. Other employees might like to explore another role or gain expertise that can be useful in enhancing employee productivity. Thus, as a manager, you should encourage employees to go beyond their comfort zone.
You must provide employees with an opportunity to learn new skills and grow, in line with the company’s requirements. Effective employee training and development programs can significantly enhance skill-building and productivity
4. Boost team productivity
Productivity goals are often included in managers’ strategic objectives. You may want to consider how your managers set and communicate goals. You would also like to know how they track employees’ progress.
For instance, ask your manager to assess each employee’s contribution toward the overall team productivity. By facilitating regular status meetings, managers can review team progress and ensure that the development goals for work are being met effectively.
These meetings allow managers to identify gaps and take necessary action to boost productivity. Look for positive trends in productivity to gauge an employee’s development.
Implement the Eisenhower Matrix to prioritize tasks—studies show busy managers save 4+ hours weekly when classifying urgent vs. important.
In 2024, 68% of managers used data dashboards to track team health (Source: Gallup). Companies tying leadership metrics to bonuses saw a 30% uplift in engagement (Source: SHRM 2023) Average training hours per manager rose to 35 in 2023, up 15% YoY (Source: LinkedIn Learning)
Setting effective development goals for work is crucial for both managers and their teams. These goals not only drive personal growth but also enhance overall team performance.
By aligning individual development goals with the organization’s objectives, managers can ensure that each team member contributes to larger business goals while also focusing on their personal career development.
When managers support these goals, it creates a culture of continuous improvement, leading to higher retention rates and job satisfaction.
6. Celebrate employees’ efforts and intentions
Great leaders know that the most valuable asset of their business is their employees. Be gracious and appreciative of your team’s efforts, especially when they accomplish a new milestone. Whenever possible, acknowledge your employees publicly so that they understand how valuable and appreciated they are.
Do not take your employees’ contributions for granted as are a valuable part of your company. Hold a companywide meeting where employees can thank each other for the help they received or for going the extra mile. This way, happy employees would contribute to increased productivity and reduced turnover.
7. Offer insightful inputs
Professional development goals for managers can guide managers to set specific objectives for each employee. This way managers can gain a comprehensive insight into an employee’s work style and share the same with the employee. Insightful feedback can help employees to improve their performance.
For instance, managers can ask employees to identify specific goals related to their jobs and meaningful to them. To ensure employees’ suggested goals align with company objectives, a manager can offer better insights and develop action plans, like creating employee guides to reach those goals.
8. Work on networking skills
Managers should develop, practice, and apply networking skills as part of their development goals. Having a fixed daily routine, with the least emphasis on building relationships with employees, can only take you up the rungs of the leadership ladder.
You can gain a great deal of insight into employees around you by building strong work relationships. As a manager, honing your networking skills would not only help you but your team as well. It is therefore certainly worthwhile to explore networking as a key development goal.
9. Increase Retention Rates
To increase the retention rate, employees must be given regular feedback to enhance their productivity–both positive and constructive.
According to a Harvard Business Review study, the optimal ratio between positive and negative suggestions is 5.6 (positive) to 1 (corrective).
To motivate employees and to empower them to work to their optimal capacity, positive feedback should be given often. Having said this, constructive and corrective remedial measures must be provided with equal importance, particularly when an issue needs to be nipped in the bud.
Other techniques that can be part of development goals for managers to increase retention rate can be:
10. Encourage creativity among employees
Many companies claim to value creativity, but they don’t necessarily have policies or initiatives to support it. To Increase creativity, offer rewards for tangible results.
Take employees’ suggestions seriously and implement them if you want to encourage them. Encourage and reward employees who make a tangible contribution.
11. Foster a respectable work environment
Nowadays, employees expect respect from their employers more than ever. In an organization, employees do not want to feel undervalued or insignificant, which may result from a lack of respect.
There are many ways to foster a culture of respect. Among them are: taking feedback intending to improve their productivity; recognizing their contributions; sharing ideas and encouraging collaboration.
12. Be a mentor and coach
It is considered that good leaders can turn out to be great mentors as well. Employees look up to their managers as a source of guidance, coaching, and counseling. Mentorship should therefore be made a priority by all managers to help their employees achieve career and knowledge growth.
Work with each employee to help them set career goals and devise productivity strategies accordingly. Make sure you provide them with opportunities that challenge them so that they can grow as individuals.
Engagedly’s Mentoring Complete can be an effective solution to mentor your employees and help them grow.
13. Regular upskilling
Being a manager does not mean that one knows everything there is to know about your industry. There is always more to learn as a manager and there is no end to learning to become more efficient with time. Thus, as a part of a manager’s growth and development goals, managers should find time to learn and master new skills. It might range from learning technical skills to management or leadership skills.
They can even enroll in a development course or register for a webinar session in an area they wish to further develop. Also, an organization can provide online resources for developing unique competencies related to project management, time management, and motivation.
Example Goal: By Q3, gather 360° feedback and hold monthly one-on-one coaching sessions to support team growth.
3. Lead Hybrid Teams Effectively
Example Goal: Within 3 months, implement a set of team rituals, asynchronous updates, and transparent decision-making processes to maintain cohesion in hybrid settings.
4. Champion Inclusive & Agile Leadership
Example Goal: Lead at least one DEI initiative and one agile improvement project before year-end.
5. Strengthen Digital Resilience
Example Goal: Complete a resilience-focused leadership module and facilitate monthly discussions with your team to share coping strategies for digital overload.
Lessons from Today’s Trends: Leadership Development in Action
Executive Coaching on the Rise Top organizations and business schools are integrating coaching as a critical development tool. It’s now the third most in-demand learning method, after career development and skills assessments.
Ethical AI Leadership As AI becomes integral to business operations, managers must model ethical decision-making, prioritizing transparency, fairness, and trust.
Gen Z’s “Conscious Unbossing” Younger leaders are rejecting traditional “boss” dynamics in favor of autonomy, purpose, and balance. Development goals must reflect this shift to attract and retain next-gen talent.
How to Set Effective Development Goals for Managers
Start with a 360-Degree Assessment – Identify strengths, blind spots, and development opportunities.
Integrate Structured Coaching – Provide access to internal or external coaching to help managers stay focused and reflective.
Set 3–5 SMART Goals Per Quarter – Ensure a mix of technical skills (e.g., AI literacy) and behavioral skills (e.g., empathy, inclusion).
Offer Mentorship Opportunities – Structured mentorship can boost both productivity and well-being.
Wrapping Up
Professional development goals change a manager’s outlook and make them an individual who leads by example.
By setting development goals for your manager, you are creating a road to success for three entities: your organization, employees, and yourself.
FAQs
Q1: How many development goals should a manager set per quarter? Aim for 3–5 SMART goals—enough to drive growth without overwhelming workload.
Q2: What’s more critical—technical or soft skill development? Both. Technical skills (like AI fluency) enhance credibility, while soft skills (like coaching and empathy) sustain engagement and trust.
Q3: Can AI help in setting or tracking these goals? Absolutely. AI tools can tailor learning plans, monitor progress, and provide timely nudges or personalized coaching prompts.
In today’s ever-changing business environments, companies always look for ways to improve organizational and team performance. Considering the dynamic digital era, powerful tools are available that can transform the way organizations execute reviews, track goals, and improve employee engagement.
Since various online options are available, selecting the most appropriate performance management platforms becomes even more crucial. Management needs solutions that tackle staff challenges while enhancing productivity and training.
When companies adapt to a particular software for evaluating team performance, two names—Lattice and 15Five—come into the limelight. Although both have advantages and disadvantages, it is very important to know the core differences to make informed decisions about what the business requires.
Specifically, comparing Lattice vs. 15Five includes essential features, the possibility of scaling, and the overall return on investment. Let’s explore these tools and how they fit into your business to understand how they can help and benefit your business.
What’s Changed in 2025 for Lattice & 15Five?
Comprehensive Growth vs. Modular Value Lattice now offers scalable modules—such as HRIS for $10/user/month and Grow for $4/user/month—catering to evolving organizational needs. 15Five continues with straightforward all-in-one tiers, including Total Platform access at $14/user/month.
Continuous Feature Expansion Lattice has strengthened internal analytics, external reviews, and compensation tools for enterprise complexity. 15Five has enhanced AI-powered manager tools and streamlined onboarding for rapid deployment.
Review Scores Reflect Growing Trust Lattice consistently leads in user satisfaction surveys (e.g., SoftwareReviews) with higher recommend and renewal metrics.
What is Lattice?
Lattice is a cloud-based performance management and engagement solution for performance testing, employee culture, and team development. It is an all-in-one tool for managing employee performance reports, tracking targets, and managing employee development programs.
Features & Benefits:
1. Performance Assessments:
Customizable Review Templates: Tailor performance reviews to fit your organization’s unique needs, whether it’s 360-degree feedback, self-assessments, or manager-led evaluations.
Continuous Feedback Mechanisms: Encourage a culture of ongoing feedback with tools for real-time praise, constructive criticism, and recognition.
Synchronized Modules: Performance data is integrated with other Lattice modules, such as goal tracking and engagement surveys, to provide a holistic view of employee performance.
Regular Check-ins: Facilitate frequent one-on-one meetings between managers and employees, ensuring alignment on priorities and progress.
AI-Powered Insights: Leverage AI to identify patterns in feedback and performance, helping managers address potential issues proactively.
2. Goal Setting and OKRs:
Alignment with Organizational Goals: Ensure individual and team goals are directly tied to the company’s broader objectives, fostering a sense of purpose and direction.
Real-Time Progress Tracking: Monitor goal progress in real-time, with visual indicators and dashboards that highlight achievements and areas needing attention.
Flexibility in Goal Management: Easily adjust goals as priorities shift, ensuring teams remain agile and responsive to changing business needs.
Transparency and Visibility: Create a transparent environment where employees can see how their contributions impact the organization’s success.
OKR Coaching and Support: Access resources and best practices for implementing and managing OKRs effectively.
3. Engagement Surveys:
Comprehensive Survey Tools: Conduct pulse surveys, onboarding feedback, exit interviews, and more to gather insights at every stage of the employee lifecycle.
eNPS (Employee Net Promoter Score): Measure employee loyalty and satisfaction with eNPS surveys, providing a clear metric for organizational health.
Customizable Templates: Design surveys tailored to your organization’s culture and priorities, ensuring relevant and actionable feedback.
Sentiment Analysis: Use advanced sentiment analysis to identify trends, uncover hidden issues, and track improvements over time.
Action Planning: Turn survey results into actionable initiatives with built-in tools for creating and tracking follow-up actions.
4. Advanced Analytics:
DEIB (Diversity, Equity, Inclusion, and Belonging) Analytics: Gain insights into DEIB metrics, such as representation, pay equity, and inclusion sentiment, to drive meaningful change.
Sentiment Analysis: Analyze employee feedback to gauge overall morale and identify areas for improvement.
Team Performance Indicators: Track key performance metrics at the team level, such as productivity, engagement, and goal achievement.
Custom Dashboards: Create personalized dashboards to visualize data and trends, making it easier for leaders to make informed decisions.
System Adoption Tracking: Monitor how effectively teams are using Lattice, ensuring maximum ROI and engagement with the platform.
5. Employee Development:
Personalized Growth Plans: Help employees create and track individualized development plans, aligning their career aspirations with organizational needs.
Learning Integrations: Integrate with third-party learning platforms (e.g., LinkedIn Learning, Udemy) to provide employees with access to relevant courses and resources.
Mentorship Programs: Facilitate mentorship connections within the organization, fostering knowledge sharing and professional growth.
Skill Gap Analysis: Identify skill gaps across teams and individuals, enabling targeted training and development initiatives.
15Five is a performance management platform that improves communication between managers and employees through continuous feedback and development tools.
Features & Benefits:
1. One-on-One Meetings:
Structured Agenda Tools: Provide managers and employees with pre-built templates and agendas to ensure productive and focused discussions.
Progress Tracking: Monitor employee progress on goals, tasks, and action items over time, ensuring accountability and alignment.
Action Item Management: Assign and track action items directly within the platform, making it easy to follow up on commitments.
Customizable Templates: Tailor meeting agendas to suit specific team or individual needs, ensuring relevance and effectiveness.
Continuous Growth Monitoring: Use historical data and trends from one-on-one meetings to identify patterns and areas for improvement.
Integration with Goals: Link meeting discussions to broader organizational goals, ensuring alignment and clarity.
2. Continuous Feedback:
Real-Time Recognition: Enable employees and managers to give and receive praise instantly, fostering a culture of appreciation and motivation.
Performance Tracking: Track feedback trends over time to identify strengths, areas for improvement, and development opportunities.
Anonymous Feedback: Allow employees to provide honest feedback anonymously, encouraging transparency and trust.
Feedback Templates: Use pre-built templates to guide constructive feedback, ensuring it is actionable and meaningful.
Recognition Tools: Celebrate achievements with public shout-outs, badges, or rewards, boosting morale and engagement.
3. Engagement Surveys:
Pulse Surveys: Conduct short, frequent surveys to gauge employee sentiment and identify emerging issues before they escalate.
eNPS (Employee Net Promoter Score): Measure employee loyalty and satisfaction with a standardized metric, providing insights into organizational health.
Detailed Analysis: Break down survey results by team, department, or demographic to uncover trends and areas for improvement.
Action Planning: Turn survey insights into actionable initiatives with built-in tools for creating and tracking follow-up actions.
Benchmarking: Compare your organization’s engagement metrics against industry standards to identify strengths and opportunities.
4. Strengths-based Development:
Strengths Assessment Tools: Help employees identify their core strengths and areas of natural talent through scientifically validated assessments.
Career Vision Planning: Enable employees to create long-term career plans aligned with their strengths and aspirations.
Role Clarity Assessments: Ensure employees understand their roles and responsibilities, reducing confusion and increasing productivity.
Personalized Growth Paths: Develop customized development plans that focus on leveraging strengths while addressing areas for improvement.
Coaching and Mentorship: Facilitate coaching relationships and mentorship programs to support employee growth and development.
5. Goal Setting and OKRs:
Alignment with Organizational Goals: Ensure individual and team goals are directly tied to the company’s broader objectives, fostering a sense of purpose and direction.
Progress Tracking: Monitor goal progress in real-time, with visual indicators and dashboards that highlight achievements and areas needing attention.
Collaborative Goal Setting: Involve employees in the goal-setting process, increasing buy-in and commitment.
OKR Support: Access resources and best practices for implementing and managing OKRs effectively.
6. Performance Reviews:
360-Degree Feedback: Gather feedback from peers, managers, and direct reports to provide a comprehensive view of employee performance.
Custom Review Cycles: Design performance review cycles that fit your organization’s needs, whether quarterly, biannually, or annually.
Development-Focused Reviews: Focus reviews on growth and development rather than just evaluation, fostering a growth mindset.
Integration with Feedback: Incorporate continuous feedback into performance reviews, ensuring they are data-driven and holistic.
Pros & Cons
Pros:
User-friendly interface with intuitive navigation and modern design.
Flexible price structure based on special needs and team size.
Strong focus on manager training with special coaching resources.
Integration with LearnUpon training management system and 30+ platforms.
Mobile application for easy access to the device.
Weekly check-ins with customizable questions and response tracking.
Hybrid teams staying connected, Startups boosting morale
When to Choose
Lattice for in-depth engagement diagnostics
15Five for ongoing, lightweight engagement
7. Manager Support:
Category
Lattice
15Five
Features
Team performance dashboards, Coaching resources
AI-powered ‘Manager Copilot’, Customizable training
Use Cases
New managers needing insights, Global companies training managers
Managers needing AI prompts, Startups scaling leadership skills
When to Choose
Lattice for analytics-driven coaching
15Five for AI-assisted, day-to-day management support
8. Compensation Management:
Category
Lattice
15Five
Features
Compensation benchmarking, Payroll integration
Basic compensation planning
Use Cases
Public companies ensuring pay equity, Organizations linking performance to bonuses
Small businesses without complex structures
When to Choose
Lattice for advanced compensation workflows
15Five if compensation is not a priority
Quick Comparison Table: Lattice vs 15Five
Feature/Aspect
Lattice
15Five
Starting Price
$8/employee/month
$4/employee/month
Best For
Mid-large organizations (50-1,000 employees)
Small-medium teams (50-150 employees)
Core Strengths
Advanced analytics suite
Robust goal tracking
Extensive customization
Compensation management
Career development tools
User-friendly interface
Strong manager training
AI-powered reviews
Weekly check-ins
Strength-based development
Key Features
Performance reviews
OKRs & Goals
Engagement surveys
DEIB analytics
Compensation tools
Career tracks
Development plans
Real-time feedback
1:1 meetings
Engagement surveys
Manager coaching
Recognition tools
Career vision planning
Integrations
24+ integrations including:
HRIS systems
Payroll
SSO providers
Communication tools
30+ integrations including:
LearnUpon LMS
Slack
Popular workplace tools
User Ratings
G2: 4.7/5 (3,709 reviews)
Capterra: 4.5/5 (110 reviews)
G2: 4.6/5 (1,757 reviews)
Capterra: 4.7/5 (881 reviews)
Analytics
Comprehensive performance metrics
Integrated engagement data
Advanced DEIB insights
Custom reporting
Basic performance tracking
Engagement analytics
HR outcomes dashboard
Support
Dedicated onboarding
Email support
Online resources
Lattice University
Email ticket system
Chat support
Support hours: 9 am-8 pm EST
Unique Offerings
Org charts
Compensation management
European data residency
Succession planning
AI-powered manager copilot
Private manager assessment
Transform coaching program
Manager effectiveness indicator
Which Tool is Right for Your Team?
Knowing more about your organization and its dynamics will help you identify which solution better suits your performance management goals.
Decision Criteria:
Team Size: Lattice is constructed for organizations with large staff (50-1000 people), while 15Five is built for small teams (up to 150 people).
Budget: To summarize, let’s discuss the starting prices—Lattice costs $8 per employee/month, while 15Five costs $4 per employee/month.
Specific Needs: Determine the proximity between the detailed analytical capabilities and a logical interface for the service.
Recommendations:
Choose Lattice if:
You’re a large or compliance-focused organization needing advanced analytics, DEIB tools, and structured performance processes.
Ideal for: Enterprises, tech firms, and DEIB-driven companies.
Choose 15Five if:
You prioritize agility, strengths-based development, and lightweight engagement.
Ideal for: Startups, remote teams, and culture-first organizations.
Both platforms excel in modern performance management but cater to different organizational maturities and priorities. Align your choice with your company’s size, goals, and cultural values.
Recent statistics reveal that 95% of consumers rely on online reviews when seeking to purchase, and one reason consumers will refer to user ratings is that they are vital.
Feature-by-Feature Comparison (Updated for 2025)
When it comes to analytics and reporting, Lattice offers deep HRIS dashboards, DEIB filters, and compensation insights—making it a strong choice for data-driven HR teams. 15Five, on the other hand, focuses on an Outcomes Dashboard that highlights retention risk insights, which is better suited for quick, actionable decision-making.
In terms of implementation speed, Lattice requires a slower setup due to its richer customization options, while 15Five delivers fast deployment and comes with broader HRIS integrations, making it easier for teams to get started quickly.
For reviews and compensation, Lattice provides structured 360° reviews, performance improvement plan (PIP) tracking, and dedicated pay strategy modules. 15Five takes a different approach with OKR tools, integrity checks, and learning modules that support continuous improvement and employee engagement.
Finally, ideal use cases vary. Lattice is built for mid-to-large enterprises with complex HR needs and a focus on modular expansion. 15Five is better suited for small to mid-sized companies that prioritize speed, simplicity, and culture alignment.
Key Takeaway: Lattice is best for organizations seeking depth, modular growth, and data granularity—though it requires a longer setup time. 15Five shines when speed, simplicity, and cultural fit are top priorities, making it a go-to option for agile teams.
Conclusion
While Lattice and 15Five are well-known for performance management, Engagedly stands out as a powerful alternative that offers a more holistic approach. Beyond just performance reviews, Engagedly integrates employee engagement, learning, and recognition into a seamless experience—helping organizations foster high-performance cultures.
Each platform has its strengths, but the right choice depends on your organization’s needs, team size, and future growth strategy. If you’re looking for a comprehensive solution that combines performance management with real-time engagement and development, Engagedly is the perfect fit.
Why settle for less when you can have it all? Explore Engagedly today! 🚀
Did you know that 78% of managers admit their performance reviews are influenced by what employees did in the last month rather than their entire yearly performance? This phenomenon, known as recency bias, silently undermines fair workplace evaluations and can make or break careers.
Recency bias is a cognitive tendency where recent events disproportionately influence our judgment and decision-making. In performance reviews, this means managers unconsciously weigh the last few weeks or months more heavily than an employee’s complete annual performance record.
Recency Bias Examples
Consider Daniel, a top sales performer at XYZ organization. Throughout 2022, Daniel consistently exceeded targets, closing major deals and contributing significantly to team success. However, during his January-March 2023 review period, Daniel faced personal challenges that temporarily affected his performance—his quarterly revenue dropped 70% below the team average.
When performance review time arrived, Daniel’s manager Sean focused exclusively on these recent three months of underperformance. Despite Daniel’s outstanding annual track record, he received no raise or promotion. This unfair evaluation led to Daniel’s disengagement, decreased motivation, and eventual job dissatisfaction.
This real-world example illustrates how recency bias creates a distorted lens that can destroy employee morale and overlook genuine talent. Organizations lose valuable contributors when recent performance overshadows consistent excellence.
How Does Recency Bias Affect Performance Reviews?
Performance reviews are meant to be a fair, evidence-based evaluation of an employee’s contributions. However, recency bias—the tendency to give more weight to recent events—often distorts the process. This bias can unintentionally reward or penalize employees based on their most recent performance, rather than their work across the full review period.
In 2025’s hybrid and fast-paced work environments, recognizing and addressing recency bias is critical for accurate evaluations, higher employee trust, and better talent retention.
Why Recency Bias Is Especially Problematic in 2025
Performance volatility – Fluctuations caused by remote work dynamics or project cycles can be misinterpreted as permanent trends.
Emotional weight of recent events – Mistakes or wins close to review time can overshadow consistent performance earlier in the cycle.
Hybrid visibility gap – In distributed teams, recent interactions (e.g., via Slack, Teams) are more top-of-mind than contributions made months ago.
Accelerated work cycles – Short sprints and fast deliverables mean recent outcomes dominate discussions.
Why does Recency Bias Occur in Workplaces?
Recency bias occurs in workplaces due to several psychological and cognitive factors:
Memory and Attention: Humans tend to give more weight to recent events because they are more easily remembered and still in our immediate attention. The human brain may prioritize recent information over older experiences when making judgments.
Availability Heuristic: People often rely on information that is readily available to them when making decisions. Recent events or experiences are more accessible in memory, leading individuals to place greater importance on them when assessing situations.
Impacts of Emotion: Recent events or experiences may evoke stronger emotions, which can influence decision-making. Emotionally charged events are more likely to be remembered and given undue weight when evaluating an individual’s performance or behavior.
Short-Term Memory Bias: The human brain tends to prioritize information stored in short-term memory. Events or information that occurred recently are more likely to be at the forefront of individuals’ minds, influencing their judgments and perceptions.
Cognitive Load: In busy work environments, individuals may be overwhelmed with information and tasks. This cognitive load can make it challenging to consider a person’s performance over an extended period, leading to a reliance on recent information for convenience.
Recency’s Perceived Relevance: People often assume that recent events are more indicative of a person’s current capabilities or behavior. This assumption may lead to the belief that the most recent information is more relevant in evaluating performance.
To mitigate recency bias in workplaces, it’s essential for managers and decision-makers to consciously consider a broader time frame when assessing performance, utilize comprehensive performance evaluation systems, and incorporate feedback from the entire evaluation period.
Recency Bias Effect on Performance Appraisal
Good reviews depend on the reviewer objectively reviewing an employee’s performance from the beginning of the year to the end of the year (for a 6-month period, a 3-month period, etc.). For a yearly appraisal sample that provides a balanced evaluation across the entire year, check out these performance review examples.
That means the final review is a summation of all the work that has been done, both the good and the bad, and the in-between as well. This is how a good review works.
With recency bias, however, the scenario is a little different. When reviewers suffer from recency bias, they tend to remember the most recent work the employee has done. And based on the quality of that work, they review their performance.
If a low-performing employee suddenly starts performing better just before the review, then despite their previous low performance, they are going to get a good review.
On the other hand, if an employee performs well throughout the year, but before the review, their performance drops, then despite their previous good performance, they are going to get a bad review.
Recency bias penalizes people based on factors outside of their control and rewards people for momentary bursts of effort.
How Recency Bias Distorts Reviews & Why It Matters
Recency bias is closely tied to cognitive science principles:
Availability heuristic – Recent performance is easier to recall, so it becomes overemphasized.
Serial-position effect – Information presented last is remembered more vividly than earlier data.
The result?
Misaligned promotions – Employees with consistent long-term excellence may get overlooked.
Demotivation – Staff feel their earlier achievements aren’t valued.
Attrition risk – High-performers may seek workplaces with fairer recognition systems.
How to Avoid Recency Effect in Performance Appraisals
Combating recency bias requires intentional systems and consistent practices:
Implement Continuous Documentation: Maintain detailed performance records throughout the review period. Note specific achievements, challenges, skill development, and feedback instances as they occur. Don’t rely on memory during review season.
Use Performance Management Technology: Digital platforms like Engagedly offer employee feedback tracking and private note features that create comprehensive performance histories. These tools eliminate guesswork and provide objective data for fair evaluations.
Establish Regular Check-ins: Schedule monthly or quarterly progress discussions instead of relying solely on annual reviews. Frequent touchpoints create multiple data points that prevent any single period from dominating the evaluation.
Create Structured Review Templates: Use standardized forms that require managers to address performance across different time periods and categories. This forces comprehensive evaluation rather than recent-event focus.
Train Management Teams: Educate supervisors about cognitive biases and their impact on performance reviews. Awareness is the first step toward making more objective, fair assessments.
While completely eliminating recency bias may be impossible due to human psychology, these strategies significantly reduce its influence. Organizations that prioritize fair performance evaluation create stronger employee engagement, better retention rates, and more accurate talent development decisions.
Remember: exceptional employees deserve recognition for their complete contribution, not just their most recent weeks. By implementing systematic approaches to performance tracking and evaluation, managers can ensure every team member receives the fair assessment they’ve earned through sustained effort and achievement.
Steps to Mitigate Recency Bias in 2025
Performance Journals – Encourage managers to keep logs throughout the year to maintain a full-cycle view.
Structured Rating Criteria – Use defined metrics and consistent scales to anchor assessments.
Regular Feedback Cadence – Hold monthly or quarterly 1:1s to ensure performance is tracked continuously.
Manager Calibration – Host review calibration meetings to align standards across teams.
360-Degree Reviews – Gather feedback from peers, reports, and cross-functional partners to provide a holistic view.
2025 Tools & Practices to Counter Recency Bias
Continuous Feedback Software – Platforms like Engagedly, Lattice, or Leapsome log year-round performance notes and feedback.
Self-Assessments with Data – Employees document achievements supported by objective metrics.
Bias-Awareness Training – Equip managers to spot and counter recency bias during reviews.
Feedback Templates – Prompts for capturing progress across the entire review period, not just recent events.
Conclusion
Recency bias may be subtle, but its effects on employee morale, fairness, and retention are significant—especially in 2025’s evolving work environment. Organizations that measure performance continuously, train managers to spot bias, and implement structured review systems can create fairer, more accurate evaluations and retain top talent.
Employee performance management tools and techniques are two of the critical management tools that influence employee growth and organizational development significantly.
A Gartner report shows that 95% of managers are unhappy with their organization’s present performance management practices. If you take the time to review your processes and how you can best utilize performance management tools, it can help you keep your employees engaged as well as help your business get ahead of the competition.
A performance management system includes various important HR functions, like goal-setting, feedback, rewards, and performance review.
An effective performance management system helps HR managers establish clear performance expectations through which employees can easily understand what to expect out of their jobs. Moreover, it allows managers to reinforce individual accountability to meet their goals and evaluate their own performance for employees.
Most organizations use performance management systems suitable to their needs based on factors like industry, number of employees, etc.
Employee performance tools in 2025 are no longer just systems for annual reviews—they are dynamic, real-time platforms that monitor performance, drive engagement, and provide actionable insights for development.
Modern tools integrate real-time dashboards, AI-powered feedback loops, and predictive analytics to help organizations make data-driven talent decisions. They go beyond evaluation—focusing on continuous engagement, personalized coaching, and proactive performance optimization to keep employees aligned and motivated in hybrid and remote work models.
Why These Tools Matter in 2025
The role of employee performance tools has evolved significantly:
From Time-Based to Energy-Based Management – Organizations are shifting from measuring hours worked to tracking energy, engagement, and impact. (Source: The Guardian)
AI-Powered Coaching – Platforms like BetterUp and Paycom offer AI-driven career coaching, learning recommendations, and talent mapping. (Sources: Business Insider, Reuters)
Hybrid-Ready Integration – Seamless integration into workflows (Slack, Teams, HRIS) ensures tools fit into employees’ daily routines. (Source: The Guardian)
Predictive Talent Insights – AI algorithms identify potential burnout, disengagement, and high-potential talent before managers notice.
What Are Employee Performance Management Tools in 2025?
Employee performance management tools in 2025 go well beyond static review systems—they are continuous, AI-enhanced platforms designed to support ongoing development, real-time feedback, and goal alignment.
Key components include:
Live, interactive dashboards tracking progress and engagement
Continuous feedback loops and recognition systems
Predictive analytics for identifying performance trends, at-risk scenarios, and coaching needs
Smooth integrations with HRIS, communication platforms (like Slack/Teams), and learning systems
These tools don’t just evaluate—they enable continuous performance growth.
Why Employee Performance Management Tools Are Critical Today
Shift to Continuous Feedback: Employers moving toward open, frequent check-ins enhance development and reduce performance anxiety.
Energy-Based Performance Metrics: Organizations are focusing on employee energy and well-being—not just hours worked—using HR tools to detect burnout and engagement dips.
AI as a Growth Enabler: Tools like Paycom that apply AI for at-risk alerts and task automation are seeing increased adoption and revenue.
What Are HR Tools for Performance Management in 2025?
HR tools for performance management in 2025 are no longer just performance review systems—they’re AI-enhanced, cloud-native solutions designed for real-time alignment, development, and engagement across hybrid and global teams.
Key capabilities include:
Sentiment-aware pulse analytics and energy tracking to proactively address workload imbalances, motivation drops, and burnout risks.
AI-generated goal clarity and feedback frameworks (e.g., COIN method) to help managers write clear, bias-free, and actionable reviews.
Integrated workflows that align performance management with skills mapping and career growth via advanced e-HRM platforms.
Predictive analytics to forecast attrition risks and skill gaps before they impact productivity.
Why HR Tools for Performance Management Matter in 2025
Manager Effectiveness Crisis – Only 26% of managers feel confident in enabling performance effectively (Deloitte, 2025).
Surge in 1:1s & Continuous Feedback – 41% of organizations now prioritize weekly or bi-weekly check-ins instead of annual reviews (ThriveSparrow, 2025).
Strategic HR Reboot – HR leaders are focusing on manager training, workforce planning, and culture-building—all powered by smarter HR tools (Gartner & SHRM).
Hybrid Work Adaptation – Modern tools ensure fair performance evaluations regardless of location or schedule.
What is Performance Management?
Performance management is the process of establishing a motivating work culture in an organization, where employees and managers constantly review themselves and work towards a few common organizational goals.
Essentially, it includes goal-setting, goals tracking, ongoing check-ins, real-time feedback, 360-degree feedback, rewards and recognition, learning and development, and talent analytics.
What happens in an organization that doesn’t have a performance management system?
It fails to motivate its employees and leaves them directionless and disengaged. A system helps an organization build a skilled and efficient workforce, which increases its overall productivity. Here are some tools you can utilize to draw the best results.
It is important to define performance plans and objectives clearly. Having plans that are open-ended and unclear creates a lack of interest in employees. At the beginning of the year or at the
beginning of the quarter, managers meet with their employees and set clear goals and objectives for them. In this phase, managers plan on ‘how’ their employees should fulfill their goals and accomplish results. These goals should be SMART and challenging.
We recommend the use of goal-setting tools that help you create objectives and key results (OKRs and KPIs) and align your individual goals to those of the organization. Performance management tools like Engagedly can help you use OKRs and get the best out of them.
Frequent employee feedback is one of the best practices for tracking employee progress and improving it from time to time. This practice helps not only employees but also the team and the entire organization increase their productivity.
While most organizations already have digitized the process of employee feedback, many organizations claim that implementing a feedback tool has helped them create a culture of frequent feedback, which in turn, promotes employee engagement. These feedback tools also include 360-degree feedback and peer-to-peer feedback.
Encourage your employees to come forward and share frequent feedback with their managers. This practice helps you build a culture of trust and continuous development. Using employee feedback software can make this practice easier to implement. Engagedly allows users to share, receive, and request feedback from their managers, team members, and peers.
3. Employee Appreciation Tools
Most employers forget to appreciate their employees’ good work, but they specifically remember to criticize when something goes wrong. This practice not only promotes disengagement but also creates a sense of dissatisfaction in employees, which directly affects their productivity. So, always remember to appreciate and recognize the good work of your employees.
Using an employee recognition tool could be the start of changing your company culture to one that promotes appreciation and recognizes employees for even the smallest of their progress. Engagedly allows you to recognize and praise your employees socially for any contribution that they’ve made to the organization.
4. HR Management Tools
HR is undoubtedly one of the most crucial functions in any organization. Managing employees manually is time-consuming and exhausting for HR personnel.
Therefore, having automated HR management software at your organization can ease many daily HR activities and solve many HR management issues.
When looking for HR software, there are many things HR managers need to consider, such as ease of set-up, strong data security, good customer support, powerful performance management, etc. Besides those features, it is also important to find a performance management tool that can adapt to your needs and grow with you.
5. Performance Appraisal Tools
When it comes to having a performance management tool in place, performance appraisal is possibly the most ordinarily used one. It’s a powerful tool that can help an organization align its goals to individual ones and track their progress and performance over time.
But if you are looking to derive the best results out of this tool, you need to make sure that the appraisal process is a regular, fair, and constructive two-way conversation between your employees.
If you fail to create an environment where your employees can speak freely, they will get demotivated and will not stay with the organization for too long.
A performance development plan is a very effective mechanism for building up employee performance. Both managers and employees benefit greatly from the PDP process, which helps in identifying areas for growth, strategies to achieve that growth, goal setting, and tracking. Some key benefits of the tool include:
A definite path to achieve goals
Measurable goals, improvement, and results
More distinctive alignment with organizational and team goals
The PDP process encourages and motivates employees to direct their growth toward organizational progress. It helps streamline the performance process and inspires success. Engagedly’s LMS (Learning Management System) can help your organization in setting this process up for your employees.
7. Pulse Survey tool
Pulse survey tools are a simple, powerful, and flexible way of collecting employee feedback and reading the pulse of your employees. The result can help you understand your employees better and, in turn, can help your organization strategize for better employee engagement.
Proper engagement surveys come from a well-set intention and well-defined goals. Moreover, they need to be frequent enough to show trends in temperament and attitude. If the intention is unclear, these surveys will ask unimportant questions and receive vague responses.
In such a scenario, it won’t be compelling enough to take any action. Read here if you wish to know more about pulse surveys.
Performance Management Techniques
Organizations must have an effective performance management system. But no matter how good the system is, its success depends on the managers who implement it.
1. Plan
The planning stage comes first. Here, you define individual goals & strategies clearly and communicate them organization-wide so that your employees understand that meeting their individual goals contributes to the organizational goals.
Coordinate with your employees before setting up their individual goals and make sure that the goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
After you define the goals and strategies for your employees, you should constantly keep track of their improvements and take care of their developmental needs. Monitoring continually means providing ongoing feedback and consistently measuring employee performance.
It helps you check if the employees are meeting their goals as planned.
3. Rate
Rating means evaluating employees based on their performance standards. Though this step is a part of monitoring and giving feedback, it is considered a more formal way to evaluate employee performance. It also helps managers know who their best employees are.
Rating employees at regular intervals helps them improve themselves. It also helps managers look at and compare performance over time or across a set of employees.
4. Reward
Effective managers understand the importance of rewarding employees who perform well. Employees feel empowered and motivated when their work is recognized.
This leads to increased productivity in the organization. So reward the employees who meet your expectations or exceed your expectations.
5. Upgrade
Keep upgrading the goals & strategies at regular intervals. If your employees feel that their existing goals seem unattainable or that they have a negative impact on the organizational work culture, then it is time to coordinate with your employees and change them.
6. Mentor and Coach
It is said that there are no such things as poor performers. So if there are employees in your organization that are showing up with mediocre performance, then they are just waiting to be discovered for the right talent that they have.
With coaching and mentoring tools in place, your organization can bring out the best in every employee. If tapped right, can you imagine where these tools can take your organization?
The growing divide between employees and organizations has made it difficult to engage the workforce and lead them to a path of optimal performance.
Leaders need to be cognizant of their employees’ needs and take a progressive approach to meeting them. Performance management tools and techniques help human resource managers find blindspots and take corrective action.
Which performance management tools do you use in your organization? Let us know in the comments section below.
Frequently Asked Questions
Q1. What are performance management tools?
Ans. Performance management tools are real-time software that helps managers and leaders track the productivity of their team members. With the help of an inbuilt data management system, these tools organize and interpret the data to get productivity insights into the organization. These insights further help leaders in making informed decisions for organizational growth.
Q2. What are the four stages of performance management?
Q3. What are some of the performance management tools?
Ans. The following performance management tools are highly beneficial for businesses: goal setting, real-time performance analysis, surveys, Real-time feedback, learning and development, and 360 performance reviews.
Q4.What are the 5 elements of performance management?
The five elements of performance management are setting goals, tracking progress, developing skills, giving feedback, and evaluating results.
Q5.What are the 5 pillars of performance management?
The five pillars of performance management are planning, monitoring, development, evaluation, and rewarding achievements.
“The Global Human Capital Trends report by Deloitte highlighted that 49% of executives found their Performance Management Process to be ineffective and required a complete overhaul.” The statistics highlight the importance of using the right performance management software to derive effective results.
In the last two years, organizations have remodeled their business processes to contain the impact of the pandemic and thereby boost the productivity of their employees working remotely and from the office.
However, regarding performance management, the achievement is not significant. A survey conducted by Kronos found that 95% of HR leaders feel that employee burnout is sabotaging their workforce retention. The problem calls for robust performance evaluation and performance review software that uses crucial parameters in managing and monitoring the workforce.
By utilizing performance review software, organizations can ensure that their review process is structured, efficient, and focused on measurable outcomes, ultimately leading to better employee performance and engagement.
This article will help you understand the intricacies of performance management systems and will explore the various features of top 10 performance management software. We will unpack the following in the below sections:
What is a Performance Management Software?
Importance of Performance Management Software
Features of Performance Management Software
Top Performance Management Software
What Is Employee Performance Software in 2025?
Employee performance software in 2025 goes far beyond basic review systems—it’s a real-time, AI-powered platform that tracks outcomes, enables continuous feedback, and supports strategic development. It includes features like:
Live performance dashboards
Two-way feedback loops and recognition tools
Predictive analytics for talent insights
Seamless integration with communication channels and HR ecosystems
Today’s software powers ongoing performance dialogue and development, not just annual checkboxes.
Why Employee Performance Software Matters Today
Data + Trust Gaps: Deloitte reports that 72% of employees distrust current performance management systems. :contentReference[oaicite:0]{index=0}
Engagement & Outcomes: Continuous systems help managers coach in real time—boosting alignment and performance. :contentReference[oaicite:1]{index=1}
AI Adoption & Demand: Companies like Paycom saw a rise in demand after adding AI-driven task automation and at-risk employee alerts. :contentReference[oaicite:2]{index=2}
What Is Continuous Performance Management Software?
Continuous Performance Management (CPM) software is a modern approach to employee performance tracking that replaces rigid annual reviews with real-time feedback, agile goal-setting, and continuous coaching.
Unlike traditional models that rely on infrequent evaluations, CPM software enables frequent check-ins, dynamic goal adjustments, and data-driven decision-making to keep performance conversations ongoing.
Core Features of CPM Software:
Goal management & alignment – Create, track, and update individual and team goals dynamically.
15Five – Focuses on manager effectiveness and employee engagement
Leapsome – Combines OKRs, feedback, and learning in one platform
Reflektive – Strong in real-time feedback and engagement tracking
PerformYard – Data-rich platform for customizable performance reviews
Betterworks – Goal-focused tool with actionable insights and feedback
Lattice – Unified platform for performance, engagement, and development
7Geese/Paycor – Integrated HCM with OKRs and coaching tools
ClearCompany – Combines performance, hiring, and workforce planning
Small Improvements – Lightweight solution for continuous feedback and reviews
What is Performance Management Software?
Performance management is a tool used by organizations globally to increase employee productivity and help them become successful in their job roles. The process encompasses continuous communication between a manager and employees for the mutual achievement of organizational goals.
Changing business needs and the latest technological developments have given rise to new-age performance management software that helps in holistic workforce management. The traditional practice of annual performance review is now transitioning into continuous process management.
The latest developments in performance management involve setting clear objectives and goals, task assignments, frequent check-ins, providing feedback at regular intervals, and analyzing the results. Through this, managers and leaders can track the performance of their employees and provide them feedback in real-time to help them perform better at their jobs.
Performance management helps organizations in utilizing the complete potential of their employees and provides effective measures to increase employee engagement, collaboration, and retention. Through the analytics feature offered by the tools, executives can look into the intricacies of performance management and create an actionable plan for performance improvement.
Importance of Performance Management Software
The primary aim of business performance management is to align leaders, managers, team members, and resources to meet the strategic goals of the business. By providing metrics to measure the performance and productivity of the system, leaders can gauge the early signs of a potential threat and create workarounds to get the business on track.
Continuous Performance Management (also known as Agile Performance Management) helps in creating a productive and skilled workforce by analyzing the performance gaps and offering solutions to increase productivity through training and mentoring.
Performance management tools are becoming increasingly important for organizations to be successful in the current business environment. By adopting performance management measures, leaders can understand the factors that are working well for the business and seek better results through proper implementation.
Employee performance management software can be highly beneficial to organizations. The following points highlight its importance in the workplace.
(Globally, 85% of employees are disengaged or not actively engaged at work, resulting in massive loss of business and revenue- A report by Gallup). Employee engagement and productivity are directly linked to the success of an organization. Engaged employees are involved actively in their work and can create strong bonds with their colleagues.
By utilizing continuous performance management, organizations can create an environment of trust, support, and encouragement. Strategic implementation of a performance management solution helps in aligning the individual goals with the organizational goals.
Employee Reskilling and Upskilling
A LinkedIn 2021 workplace learning report shows that 94% of employees would have stayed longer at their last organization had the company invested in their learning and development. The report also highlighted that the interest and zeal to learn is highest among the younger workers belonging to Gen Z.
Providing mentoring and coaching to employees not only helps them perform better at their jobs but also motivates them to take up more responsibilities. By reskilling and upskilling employees, organizations can attract new talent and train existing employees to take up managerial positions.
Employee development is at the heart of business performance management solutions, and organizations can reap numerous benefits by using them effectively.
Improves Workplace Communication and Collaboration
A report by McKinsey highlights the importance of communication in the workplace. It states that improved communication can increase the productivity of interacting employees by 20-25%. Another report by CMSWIRE states that 85% of employees use more than one device for communication.
The statistics outline the importance of clear and efficient workplace communication. The major difference between a performing and a non-performing team is efficient communication. By improving communication in the workplace, organizations can improve employee efficiency and mitigate critical risks that lead to the failure of the organization.
Top 10 Performance Management Systems in 2025
The successful implementation of software can cause a ripple effect in the organization. It helps in aligning the workforce towards the business goals and makes employee engagement and collaboration easier.
As many organizations are paving their way to digitizing and modernizing their performance systems, the following list of employee performance management software will be helpful to them in selecting the right tool that matches their organizational needs and objectives.
Engagedly is an AI-powered talent management platform designed to help organizations build high-performing, people-first cultures. At the heart of Engagedly 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 management, 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—freeing up teams for high-value work.
Scalable & User-Friendly: Intuitive for both employees and HR teams, and adaptable across organizations of all sizes.
Proven Impact: Companies using Engagedly have seen 2.5× faster goal alignment, 60% reduction in review cycle time, and over 30% improvement in employee development plan completions.
Key Solutions Offered:
OKR & performance management consulting
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
Onboarding workflows
DEI & cultural alignment initiatives
AI-driven talent insights & recommendations
2. 15Five
15Five is a tech-powered platform that offers employee engagement, continuous performance management, and manager effectiveness. The solution combines software, education, and community to build effective managers and improve employee performance.
Solutions offered by 15Five:
Weekly Check-Ins – Simple surveys that keep managers informed about employee progress, challenges, and morale.
Continuous Feedback – Real-time feedback tools that encourage timely recognition and constructive input.
OKR & Goal Tracking – Aligns individual and team objectives with organizational goals, with progress tracking dashboards.
Engagement Surveys – Science-backed surveys to measure employee engagement and identify improvement areas.
1-on-1 Meeting Agendas – Structured templates and scheduling tools to make manager-employee conversations more productive.
Performance Reviews – Streamlined review cycles with customizable forms, rating scales, and automated reminders.
3. Leapsome
This software provides a continuous cycle of performance management and personalized learning through features like OKR management, performance reviews, employee engagement surveys, feedback, and praise. It helps in aligning the workforce towards organizational goals.
Solutions offered by leapsome:
Performance Reviews & 360° Feedback – Fully customizable review cycles, competency frameworks, and role-based feedback to ensure fair and actionable evaluations.
Goals & OKRs Tracking – Set, align, and monitor organizational, team, and individual goals, with visual progress dashboards to keep everyone on track.
Continuous Feedback – Real-time recognition and constructive input between peers, managers, and direct reports to build a feedback-rich culture.
Employee Engagement Surveys – Customizable pulse surveys with analytics to measure engagement drivers and address problem areas proactively.
Learning & Development Modules – Personalized learning paths, skill frameworks, and integration with external learning content.
Competency Frameworks – Define skills and expectations for each role to guide employee development and performance measurement.
4. Reflektive
Reflektive is a comprehensive performance evaluation software that assists in business growth through continuous improvement. The tool helps increase productivity through constructive employee engagement and driving growth through high-performance-driven teams.
Solutions offered by Reflektive:
Real-time Feedback
Easy and quick employee recognition
Multiple user tagging
Performance and talent calibration
Increase and measure employee engagement through surveys
5. PerformYard
PerformYard is a scalable performance management platform that provides intelligent insights about the workforce through data-driven features. It helps in executing performance reviews, frequent check-ins, real-time feedback, and inputs from throughout the organization.
Solutions offered by Performyard:
Customizable Performance Review Cycles – Create review schedules that fit your business rhythm, from quarterly check-ins to annual appraisals.
360-Degree Feedback – Gather multi-source feedback from peers, managers, and direct reports for a balanced employee performance view.
Goal Setting and Tracking – Align individual and team goals with organizational objectives, track progress visually, and adjust in real time.
Continuous Feedback Loops – Encourage frequent, informal feedback to build a culture of ongoing improvement rather than one-time evaluations.
Automated Reminders and Notifications – Keep managers and employees on track with built-in alerts for upcoming tasks and review deadlines.
Detailed Performance Analytics – Access dashboards and reporting tools to spot trends, identify high performers, and address skill gaps.
Betterworks helps enterprises scale up their performance by providing intuitive and directional insights. This performance management tool helps create a vision with the right set of goals, reviews, and continuous feedback from the employees. Managers can use features like reviews and check-ins, goal management, and continuous feedback for performance enhancement.
Solutions offered by Betterworks:
Continuous Performance Management & Check-Ins
Offers ongoing feedback loops, regular one-on-one check-ins, and light, coaching-oriented performance conversations instead of infrequent formal reviews.
OKR & Strategic Goal Setting Alignment
Facilitates company-wide objectives (OKRs) cascaded down to team and individual levels, ensuring alignment of efforts with larger business goals.
360-Degree Feedback & Peer Recognition
Incorporates multi-source feedback, real-time peer-to-peer recognition (e.g., digital badges), and fosters a supportive, transparent feedback culture.
Advanced Analytics & Reporting
Equipped with real-time dashboards, trend and historical performance tracking, customizable analytics, and manager-specific insights to guide decision-making.
7. Lattice
Lattice provides engaging features for enterprises and supports employee growth and development. The software uses intelligent methodologies to combine performance management, employee engagement, and employee development into one holistic solution.
Solutions offered by lattice:
Goal Management & OKRs: Set, track, and align organizational, team, and individual goals with OKR frameworks, ensuring visibility across the company.
Performance Reviews: Conduct structured annual, quarterly, or project-based reviews with customizable templates and rating scales.
360-Degree Feedback: Facilitate peer, manager, and self-assessments to provide well-rounded performance insights.
Real-Time Feedback: Allow employees and managers to give and receive instant recognition or constructive feedback.
Engagement Surveys & Pulse Checks: Measure employee sentiment with customizable surveys and AI-driven analytics.
Employee Growth Plans: Create personalized career development plans tied to skills, competencies, and organizational needs.
8. 7Geese/Paycor
It is a human capital management tool that offers a range of services, like HR & payroll management, talent management, workforce management, and employee experience. It helps in building an engaging and collaborative culture to enhance organizational performance.
Solutions offered by 7Geese/Paycor
1:1 and feedback tools
Automated workflows to eliminate repetitive tasks
Customizable dashboard for coaching sessions
OKRs and goal management
9. ClearCompany
ClearCompany offers a platform that combines recruitment, onboarding, performance management, and workforce planning into one ambit. It offers a range of solutions that help organizations develop and nurture talent for higher performance.
Solutions offered by ClearCompany:
Workforce planning and analytics
Employee onboarding
Employee engagement tools and surveys
Performance management system
9. Small Improvements
Small Improvements is a lightweight performance management platform built for growing teams. Used by companies like Duolingo, SoundCloud, and Zapier, it helps foster a culture of continuous feedback, alignment, and development.
Key Features:
Customizable performance reviews & 360° feedback
Lightweight goals & objectives
Real-time feedback & praise
1:1 meeting agendas & notes
Pulse surveys & engagement insights
Integrations with tools like BambooHR, Slack, and Google
Ideal for companies with 10–1350 employees, Small Improvements offers a flexible, user-friendly toolkit to improve performance and employee experience.
Features of Top Performance Management Software
While selecting the best performance management software for the organization, it is imperative to look for some desirable features in the tool. The crux of implementing a system is to ensure performance improvisation throughout the organization and automate several manual tasks to avoid critical human errors.
Looking for the right performance management tool can be a lengthy process if the desired objectives and goals of the performance management system are not clearly defined. Conducting surveys and interviews within the firm can shed some light on the objectives.
Once the objectives are enumerated, HR managers should relate them to the below features and zero in on the tool that will meet organizational requirements. Check out the below features while selecting the best performance management platform.
Continuous Feedback Mechanism
The mechanism calls for a continuous, open, and cyclical feedback exchange between the manager and employees. It helps in finding the performance gaps of an employee and starting an improvisation plan. Through this process, managers can ensure project deliveries are not hampered and employees are getting continuous feedback on their work.
360 Degree Feedback
Also known as multi-rater feedback, it involves taking anonymous employee feedback from the colleagues he/she has a working relationship with. Managers, peers, direct reports, and subordinates all submit their feedback through a specialized mechanism.
360-degree feedback, when integrated into performance review software, provides insight into the behavior, attitude, and work relationships of employees. The unbiased nature and subjectivity of 360-degree feedback make it more acceptable to employees.
A performance management solution should be user-friendly and easy to understand. The system should help in automating tasks that require regular check-ins and error-free delivery. By sending automated reminders, it can help reduce the turnaround time and delays in submissions. Business performance management software offers customizable surveys and dashboards that aid in the easy collection and visualization of employee feedback.
People Analytics
Also referred to as talent analytics or HR analytics, it is a data-driven method to study people, processes, challenges, and opportunities in the workplace. The talent insights collected through the rigorous process aid in making smarter decisions, succession planning, and improving the capabilities of the workforce.
Many organizations are heavily focused on people analytics to make HR business strategy decisions like recruitment and selection, learning and development, project management, and KPI creation and setting.
Social Performance Management
Social connection and engagement go a long way in today’s virtual business environment. In the last 2 years of the pandemic, employees working remotely have faced a lot of disconnect from their teams and organization, leading to proximity bias and reduced productivity.
Social performance management, or SPM, is a part of the software that provides a solution to stay connected within the organization by letting employees share ideas, opinions, and thoughts with everyone in the organization. Employees can ask for real-time feedback from their colleagues or managers.
Employee Reward and Recognition
(As per a survey conducted by Achievers, more than half of 1,700 respondents are actively looking out for new jobs, citing lack of recognition in the workplace). Employee reward and recognition is one key parameter that organizations need to look for in retaining potential employees.
A well-implemented reward system helps in boosting employee productivity and makes them feel valued in the workplace. Through gamification, performance management software encourages employees to reward each other for their contributions and outstanding performance.
Setting SMART Goals
A report published by Gallup highlights that over 50% of employees are not clear about what is expected from them at the workplace. Introduced in 1981 by George T Doran, SMART refers to Specific, Measurable, Achievable, Relevant, and Time-bound goals that help organizations in measuring employee performance through a defined metric.
Goal setting is one of the most critical and time-consuming processes in an organization. Yet, it has many advantages, such as providing clear expectations to the employees, reduced turnaround time, and higher productivity & engagement.
It helps in quantifying the performance of employees and offers insights to managers for plugging in performance gaps. A performance management solution aids in setting SMART goals that help in measuring employee performance in real-time.
Learning Management System
Learning is at the core of a performance management tool. It helps in assessing the current skills of an employee and charts out a defined path to develop and grow in the organization. Employees can use the module for self-assessment and set goals for themselves to hone their skills. Managers can assign certain learning modules to their employees to help them learn new skills.
Most of the employees are concerned about their skill development and career progression, so having a learning module in the system makes them feel cared for.
Customization, Security, and Integration
An important aspect of performance review software is its integration with other HR technologies and tools. As organizations these days use multiple tools for employee management, it is a fundamental requirement for software to seamlessly integrate with these tools for a better employee experience.
The various modules available in the system can also be customized as per the business needs and provide data security as per the business standards.
Concluding Words
Performance management software is the key to building a skilled, motivated, engaged, and performance-driven workforce. In the highly competitive and rapidly changing business environment, the success of an organization lies in how well it is managing its employees.
By shifting from traditional tools to modern tech-loaded systems, organizations can bring a real impact on their business. We hope the information shared in this article will help you in selecting the best performance evaluation software.
Did you know that managers spend an average of 210 hours a year on performance discussions with their employees? Though performance review discussion is an integral part of every organization, almost everyone dreads them.
Do they have to be that scary? Well, not if you discuss just the right things with your employees during the review!
With the evolving workplace landscape of 2025, performance discussion topics have expanded beyond traditional metrics. Today’s effective performance conversations must address remote work dynamics, AI integration, mental health considerations, and diversity initiatives to truly support employee growth and organizational success.
As managers, it is your responsibility to conduct performance discussions with your employees and provide them with a fair and accurate review.
It’s important to be prepared ahead of time, but it is equally important to bring up the right things during the performance discussions.
These discussions can result in strategic planning of workplace goals and objectives and help you set OKRs for your team easily. Moreover, asking the right things will help you locate bottlenecks in the process and may even lead to subtle things that can increase the team’s productivity.
This article will provide you with 7 things to bring up during performance reviews to get the most out of the discussions.
What’s the Purpose of Performance Review Discussions?
The purpose of a performance review discussion is to understand the performance of an employee in the core business areas. The responsibilities and actions performed by an employee in accomplishing the tasks and any other initiatives taken by them to drive the team and the organization towards their objectives.
It is important to understand the things to discuss during the performance review to make it streamlined and employee-centered. The below points will help you in making your next review meeting more strategized and focused on the employee’s improvement.
It is important to understand the subtleties of performance reviews to make it streamlined and employee-centered. Here is the list of 7 things you must cover in every performance discussion to let your employees have a fair and accurate understanding of their performance.
1. Acknowledge Accomplishments
Always remember to acknowledge the good work that your employees do or find something good about your direct reports to talk about in a performance review meeting. They need to understand that you are monitoring both the positive and negative aspects of theirperformance. Moreover, this helps you make them feel comfortable with the conversation.
Example:
“Priya, I want to start by acknowledging the excellent work you did on the last project. Your attention to detail and ability to meet tight deadlines were commendable. The client even mentioned how pleased they were with the final delivery. Keep up the great work, and let’s build on that momentum.”
Open your conversation by calling out two recent wins—whether it’s exceeding a sprint goal or mastering a software feature. Research finds that beginning with genuine recognition can raise engagement by over 20%, setting an upbeat tone for everything that follows.
2. Talk About The Gaps In Knowledge
A leader always lets people know about their shortcomings and shows them a way to improve themselves. It is very important for you as a manager to recognize and talk about your employees’ gaps in knowledge. This helps them understand what is expected of them and evaluate themselves better.
Example:
“Ravi, I noticed that while your project management skills are strong, there seems to be a gap when it comes to financial forecasting. It’s an important skill for the upcoming projects, so I recommend taking a short course or collaborating with the finance team to bridge this gap. This will help you manage budgets more effectively.”
There are many things other than just the knowledge gap that result in a lack of performance. As a manager, you should let your team members know what could be changed about their current performance and where they need improvement.
A performance review meeting should be a place where you both communicate and plan where you could improve as individuals and as a team to improve your performance.
Example:
“Shweta, while you’ve been delivering quality work, I’ve observed that meeting deadlines has been a consistent challenge in the past quarter. We need to work on improving time management so that tasks are completed on schedule. Let’s discuss strategies you can use to prioritize tasks and allocate time more effectively.”
4. Ask For Suggestions
Sometimes, it is important to listen to your employees. They could have really valuable suggestions to give about how the team could function and contribute to organizational success. Also, asking for suggestions from your employees gives them a chance to participate and contribute to the organization actively.
Example:
“Ajay, I’d love to hear your thoughts on how we can improve the team’s workflow. You’re on the frontlines every day, and your insights could help us streamline processes or even adjust some of the current strategies we’re using. What’s something you think could be changed to make things more efficient?”
Lean into questions that start with ‘How did you feel when…?’ or ‘What was your biggest takeaway from…?’ Then repeat back key phrases you heard. This simple mirroring builds trust and often reveals hidden blockers before they derail progress.
5. Discuss Employee’s Long-term and Short-term Goals
As a manager, you should know the answer to these two questions about your employee.
According to HRM Canada, 85% of workers feel they could be more efficient at work, but because of skill underutilization, do not live up to their full potential!
Asking about their short-term goals makes you understand what they have planned for the current role in your organization helps you both stay on the same page concerning their goals and helps you utilize their skills and potential to the fullest.
Asking them about their long-term goals will help you understand what they expect from their current job and how they would be able to adjust to the changing trends in your industry.
Example:
“Soha, I’m curious to know what your short-term goals are in your current role. Where do you see yourself excelling in the next six months? And looking further ahead, do you have long-term aspirations within the company? Let’s figure out a plan to ensure you’re on track to reach those milestones.”
6. Clarity Of Role
Research from the University of Cambridge tells us that employees find more success in their roles when they’re given clear expectations. Utilize your performance review meeting to clarify the role of your employees in the organization and set specific goals for them.
Example:
“Vikas, I want to ensure that you’re clear on your responsibilities and what is expected of you in your role as a team leader. Your main focus should be managing client relationships while ensuring the team stays on track with deliverables. Is there any part of your role where you feel you need more clarity or support?”
Once you clarify your employee’s role in the organization, it is important to make a performance improvement plan for them. This doesn’t imply that their past performance wasn’t good enough, you can always aim to improve your future performance. So use this performance review meeting to come up with a proper performance plan and set OKRs for your employees!
Example:
“Let’s work together on a performance improvement plan to help you succeed in the next quarter. We can set OKRs that are realistic and aligned with both your goals and the company’s. For example, let’s aim to improve client satisfaction scores by 10% and ensure all reports are delivered on time. We’ll review progress in our monthly check-ins.”
8. Address Work-Life Balance and Well-being
In today’s post-pandemic workplace, employee well-being has become a critical factor in performance and retention. A performance discussion should include conversations about work-life balance, stress management, and overall employee wellness. This shows you care about your employees as whole people, not just their work output.
Research shows that employees with better work-life balance are 21% more productive and have 40% lower turnover rates. As a manager, addressing well-being during performance discussions helps prevent burnout and identifies support needs early.
Key areas to cover:
Current stress levels and workload management
Flexible work arrangements and their effectiveness
Mental health support and resources available
Time management challenges
Personal life factors affecting work performance
Example: “Sarah, I want to check in on how you’re managing your workload and overall well-being. I’ve noticed you’ve been working late hours recently. How are you feeling about your current work-life balance? Are there any adjustments we can make to your schedule or workload to help you maintain peak performance while taking care of yourself?”
Follow-up questions to ask:
“What support do you need to better manage your workload?”
“How effective are our current flexible work policies for you?”
“Are there any stressors at work that we should address?”
“What wellness initiatives would be most helpful for you?”
9. Discuss Learning and Development Opportunities
Continuous learning is essential in today’s rapidly evolving workplace. A performance discussion should explore current skill gaps, learning preferences, and development opportunities that align with both employee interests and organizational needs. This conversation demonstrates your investment in their professional growth.
According to LinkedIn’s 2024 Workplace Learning Report, 76% of employees want more learning opportunities, and companies with comprehensive learning programs have 53% lower attrition rates.
Example: “Raj, let’s talk about your professional development. I’ve seen your strong performance in data analysis, and I think there are opportunities to expand your skills in machine learning. What areas of professional development interest you most? Are there specific courses, certifications, or learning experiences you’d like to pursue in the next quarter?”
Follow-up questions to ask:
“What new skills do you want to develop this year?”
“How do you prefer to learn – through formal training, mentoring, or hands-on projects?”
“Are there any industry trends or technologies you’d like to explore?”
“What learning budget or time allocation would help you grow professionally?”
10. Plan Next Steps and Follow-up Actions
Every effective performance discussion must end with clear, actionable next steps and a concrete follow-up plan. This ensures accountability and demonstrates that the conversation was meaningful rather than just a formality. Without this section, even the best performance discussions lose their impact.
Studies show that employees are 3x more likely to improve performance when there are specific action items and regular check-ins scheduled after performance discussions.
Key areas to cover:
Specific action items with deadlines
Resources or support to be provided
Timeline for follow-up meetings
Success metrics and milestones
Documentation and tracking methods
Example: “Amit, let’s summarize our discussion and create a clear action plan. Based on our conversation, you’ll work on improving presentation skills by attending the communication workshop next month and presenting to the team by quarter-end. I’ll arrange mentoring sessions with our senior manager, and we’ll check progress in our monthly one-on-ones. Does this timeline work for you?”
Action planning template:
Immediate actions (next 30 days): Specific tasks with deadlines
Short-term goals (next quarter): Skills development and project outcomes
Long-term objectives (next 6-12 months): Career progression and major improvements
Support needed: Resources, training, or assistance required
Check-in schedule: Frequency and format of follow-up discussions
Follow-up questions to ask:
“What support do you need to accomplish these action items?”
“Are these timelines realistic given your current workload?”
“How would you like to track progress on these goals?”
“When should we schedule our next formal performance discussion?”
How Engagedly’s Performance Review Module Fosters Meaningful Dialogue and Growth
Performance reviews often fall short of their potential, bogged down by formality and one-sided feedback. This can lead to missed opportunities for development and hinder organizational progress. Engagedly’s performance review module aims to bridge this gap, facilitating effective dialogue, data-driven insights, and actionable outcomes to empower both individuals and organizations.
Structured Dialogue for Focused Conversations:
Pre-defined and Customizable Questions: Engagedly provides role-specific question sets to guide discussions, ensuring key areas are addressed. Managers can further personalize these questions to tailor the review to individual needs and objectives.
Real-time Feedback Exchange: The platform encourages a two-way dialogue, allowing employees to contribute their perspectives alongside manager feedback. This fosters open communication and builds trust.
Data-Driven Insights for Informed Decisions:
Performance Data Integration: Engagedly seamlessly integrates data from various sources, including goals, feedback, and recognition metrics. This paints a comprehensive picture of individual performance and contribution.
Visualized Data: Data is presented in clear and concise dashboards, making it easy for both managers and employees to understand strengths, weaknesses, and areas for improvement.
Goal Alignment Review: The review process facilitates assessing progress towards individual and team goals, ensuring alignment and identifying potential roadblocks or adjustments needed.
Actionable Outcomes for Continuous Improvement:
Personalized Development Plans: Based on the review discussion and data insights, Engagedly helps create personalized development plans. These plans outline concrete steps for improvement, skill development, and career advancement.
Continuous Feedback and Growth: The platform encourages ongoing performance conversations throughout the year, fostering a culture of growth and continuous improvement.
SMART Goal Setting for Future Success: The review informs the setting of SMART goals for the next period, ensuring alignment with individual and organizational objectives and driving future success.
Engagedly’s performance review module extends beyond the annual formality, offering:
Transparency and Trust: The platform encourages open communication and trust-building between managers and employees, leading to a more engaged and productive workforce.
Organizational Growth: By aligning individual development with organizational goals, Engagedly empowers the entire organization to reach its full potential.
Engagedly’s performance review module is not just a checklist; it’s a catalyst for meaningful dialogue, actionable insights, and continuous improvement. Transforming performance reviews into productive conversations that drive growth, unlocks the potential of both individuals and organizations, paving the way for a thriving future.
Conclusion
A performance discussion is an integral part of an organization. It helps in finding potential employees and providing them with the right opportunities and skills to excel in their careers. Additionally, managers can also provide constructive feedback to employees whose performance is not on par with the standards.
By inculcating the review meeting points discussed in this article, you can make the process clear, actionable, and employee-centered. You can use these performance review topics during your annual, quarterly, or biannual performance review discussion.
Coaching and mentoring are powerful learning tools in the workplace, contributing to the empowerment of employees. The mentees, in particular, reap significant benefits, experiencing enhanced confidence and interpersonal skills. This dynamic relationship substantially improves individual performance. Implementing coaching and mentoring establishes a hands-on training program for new employees, aiding them in comprehending job expectations. Rather than thrusting a new employee directly into a position, providing a support system and an interactive learning environment through professional coaching and mentoring fosters on-the-job confidence.
What is Coaching and Mentoring in the Workplace?
Coaching and mentoring play pivotal roles in the workplace, enabling employees to achieve remarkable levels of professional development and personal growth. Coaching provides personalized guidance for skill enhancement and goal achievement, while mentoring cultivates enduring relationships offering valuable career advice and support.
Adopting these practices nurtures increased employee engagement, job satisfaction, and overall organizational success. A culture that embraces coaching and mentoring fosters a dynamic learning environment, encouraging knowledge sharing and attracting top talent. This contributes to a thriving workplace where employees are motivated to excel, unlocking their full potential.
Benefits of Coaching and Mentoring
Coaching and mentoring an employee makes them more valuable to the organization. It helps to develop and enhance their skills professionally and personally and provides a guided path towards the targeted goals. It directly benefits the employees to discover and embrace the truth about themselves and helps to explore by setting order and improving competencies.
Its focuses on improving performance and developing an individual
It provides employees with the opportunity to assess their strengths as well as their development areas
Commit to action
Preparing and supporting people through change
Sharing curated resources
Time management and skill competencies
Examples of Mentoring and Coaching in the Workplace
Remote Work Mentoring Examples:
Microsoft Teams Mentoring Initiative (2024) Microsoft launched a global virtual mentoring program connecting 50,000+ employees across time zones, focusing on digital transformation skills and remote leadership development.
Salesforce Ohana Culture Coaching (2024) Salesforce expanded their mentoring program to include AI skills coaching, with senior developers mentoring junior staff on Salesforce AI integration, resulting in 40% faster project completion.
Google’s DEI Mentoring Network (2024) Google’s updated mentoring program focuses on underrepresented groups in tech, with specific tracks for women in leadership and LGBTQ+ career advancement.
Mastercard
Mastercard considered mentoring as a means to break down silos and help employees connect with co-workers across the business who have similar ambitions and interests. This leading global payments technology company leveraged its talent marketplace to generate mentor pairings based on capabilities and ambitions, instead of making matches based solely on seniority. Mastercard’s mentoring program has proven to be particularly beneficial for welcoming new talents into their organization.
Schneider Electric
Surveys revealed that nearly 50% of exiting employees cited subpar growth opportunities as their primary reason for leaving the business. Therefore, Schneider Electric decided to take action and launch a talent marketplace to transform internal mobility and empower its employees to take charge of their professional development. Mentoring is a core component of internal mobility at Schneider Electric.
Novartis
With a headcount that surpasses 100,000, breaking down silos is a priority for Novartis. In the past, associates struggled to gain visibility into opportunities outside of their region and function. This led to the launch of a mentoring program with an emphasis on cross-functional and cross-country pairings. The company used its talent marketplace to generate mentee-mentor pairs based on relevant expertise.
Cooley
Cooley is a global law firm with over 1,500 lawyers. The intricacies of their legal work demand that new attorneys be ready for action quickly. Their Cooley Academy Mentoring Program (CAMP) was designed to onboard new employees and get them ready to fasten connections with more experienced individuals. This provided them with a good support system that helped them become competent in their new roles faster.
McGraw-Hill
The education publication giant, based in New York City, has offices in 38 countries, which provides interesting opportunities for mentorships. The company undertook a comprehensive planning and strategy approach to its mentoring program development. A case study on the process shows that most employees are well-served by the program. 97% of participants said that they would recommend the program.
Real-Life Success: Coaching and Mentoring in Action
Why diversity coaching is important?
In 2018, Starbucks found itself in the middle of a public relations crisis when an employee called the police on two black men who were waiting for a friend in a Philadelphia cafe without ordering anything. The men were arrested, despite doing nothing wrong, and the incident went viral. Many activists used the incident to highlight bias against Black people and protesters began to hold demonstrations inside stores. In response, Starbucks decided to close all of its 8,000 U.S. stores for a day to hold racial bias training. Experts in diversity and inclusion pointed out that research shows that this type of one-day training often fails to produce even short-term results. Starbucks leadership acknowledged that the issue could not be solved within one day, and promised to create a program that was central to the company’s core mission and in line with its values.
Productivity Mentoring
Deloitte created its D-180 digital mentoring program in response to COVID-19. It targets university graduates, high school students, and college students. The aim is to provide participants with the skills and support they need to find meaningful work within the evolving new economy. Deloitte provides this service to youth in the Middle East and Cyprus. They advocate for an education that goes above and beyond academia. Deloitte pairs with mentors through internet mediums with young mentees and oversees their relationships. The aim is to encourage future employment opportunities
Mentoring and Coaching Tools and Technologies for 2025
“Digital Mentoring Platforms”
AI-powered matching algorithms
Virtual reality training sessions
Mobile-first communication tools
Progress tracking dashboards
“Hybrid Work Solutions”
Video mentoring best practices
Asynchronous coaching methods
Digital collaboration tools
Cross-timezone scheduling systems
Conclusion
Therefore, mentoring and coaching are related to the dissemination of knowledge and the development of skills provided at various levels. The processes, when effectively done, are likely to bring positive change in individuals and hence, increase the productivity of organizations.
Frequently Asked Questions About Workplace Mentoring and Coaching
What’s the difference between mentoring and coaching in the workplace?
Mentoring focuses on long-term career development and relationship building, while coaching targets specific skills and short-term performance improvements.
How long should a workplace mentoring relationship last?
Most effective programs run 6-12 months, with monthly check-ins and quarterly goal reviews.
What makes a successful mentor in the workplace?
Active listening skills, industry experience, commitment to others’ growth, and clear communication abilities.
How do you measure mentoring program success?
Track retention rates, promotion rates, employee engagement scores, and participant satisfaction through regular surveys and performance reviews.
Can remote employees participate in mentoring programs?
Yes, virtual mentoring programs can be equally effective with proper technology, structured communication, and regular video interactions.
In 2025’s evolving workplace landscape, team building activities have become more crucial than ever. With 42% of companies operating in hybrid models and employee engagement at an all-time low, strategic team building isn’t just nice-to-have—it’s essential for business survival. Whether you’re managing a small startup team, leading a large corporation, or coordinating remote workers across time zones, the right team building activities can transform your workplace culture and boost productivity by up to 12.5%. One of the crucial factors that contribute to a business’s success is how efficiently and effectively its employees work together.
A recent Gallup report shows that companies that concentrate on team-building activities have a 12.5% higher productivity rate. The report also states that team managers are important in facilitating this and should focus on the strengths and weaknesses of every individual in a group.
Another survey among US employees supports this: of the surveyed employees, 25% feel ignored and 40% are disengaged. But after managers started focusing on individual employees’ strengths, active disengagement fell to almost 1%.
It is evident then that managers play a crucial role in improving performance management and encouraging team building.
In this article, we will look at some creative team-building activities managers can undertake to improve team engagement and performance.
What Do You Understand By Team Building?
Team building involves building strong bonds between members, embracing differences, and sharing opinions to achieve a common goal. Team building can happen through daily interaction when employees work together for a common need. It can also be done by organizing specific team-building activities for employees.
Unfortunately, the COVID-19 pandemic has resulted in a great shift in what team-building entails. Most employees are engaged in working in hybrid or remote environments. So, when companies are planning a team-building strategy, they have to think of a combination of virtual and in-person activities.
Why is Employee Team-building Important?
The main purpose of employee team-building activities is to increase communication, motivate employees, and focus on employee collaboration and planning skills through fun activities.
But which activities are effective in engaging employees and boosting performance management?
Whether you are the HR manager or owner of a startup, the selected activities in an event will influence its success. Consider the desired outcome to decide on the type of activities. Some reasons to include team-building activities with your employees include:
Whether you want to up productivity, increase communication amongst team members or just provide your employees with a great opportunity to bond, these activities are fantastic for corporate team-building.
Team-building Activities for Small Groups
Small teams work closely, focusing on each other with effective communication. The activities designed to strengthen the interpersonal relationship and communication skills in small groups are as follows:
Human Knot
Human knot is an excellent game that encourages employees to work as a team to solve problems. It requires cooperation and leadership to solve a puzzle. It focuses on problem-solving and takes 5 to 10 minutes to complete.
In this, players have to stand in a circle, facing inwards. Players must join their right hand with the person opposite them and do the same with their left hand. The main goal is to unravel the knot without releasing each other’s hands. The game should end with the players standing in a circle with their hands joined. It requires players to twist, turn, and pass through each other hands, maintaining communication simultaneously.
Blind Retriever
If you are to improve communication among small groups, plan for this game. It’s a fun game that boosts listening skills and hardly takes 5 to 10 minutes.
In this game, form teams, and one person in each team is blindfolded. Directed by a teammate, the blindfolded person has to retrieve the object before the other team does.
Team Lunch
This is a passive team-building activity that succeeds in building interpersonal relationships. It also boosts team morale and strengthens relationships. The team goes out to a restaurant or the company gets lunch catered at the office for team lunch.
Two Truths and a Lie
A classic icebreaker where each team member shares three statements about themselves—two true, one false. Others guess the lie. Perfect for building personal connections and improving communication in small teams.
The Marshmallow Challenge
Teams receive spaghetti, tape, string, and a marshmallow. Goal: build the tallest freestanding structure with the marshmallow on top. Develops creative problem-solving and iterative thinking.
Speed Networking
Pair team members for 3-minute conversations before rotating partners. Include conversation starters like “What’s your hidden talent?” or “Describe your ideal weekend.” Builds interpersonal relationships quickly.
Story Building
One person starts a story with a sentence, the next person adds a sentence, and so on around the circle. Creates collaboration, active listening, and often generates lots of laughter.
Desert Island Scenario
Teams discuss what 5 items they’d bring to a desert island and must reach consensus. Encourages communication, compromise, and understanding different perspectives.
Memory Wall
Team members write favorite work memories on sticky notes and create a collaborative memory wall. Builds positive team culture and reminds everyone of shared successes.
Would You Rather
Present thought-provoking “Would you rather” questions related to work preferences, travel, or life choices. Helps team members learn about each other’s values and decision-making processes.
Team Building Activities for Large Groups
Scavenger Hunt
It is a fantastic activity that brings a team together. It allows employees to learn more about the company and the organization they work for. Considering this option can be daunting for an organizer but don’t be deterred from it. Plan something out-of-the-box that encourages critical thinking, problem-solving, and teamwork.
It will take 1 to 2 hours, and the game’s setup requires large office space.
The game is about finding hidden objects. Once the team gets the item, they will have a clue for the next phase in the game. The team that completes the challenge first wins.
Here, small teams should play to start the clue, and they have to be creative to solve the riddle.
Community Service
Other than games and activities, a team-building exercise can also do some real good, like volunteering staff for community service. It boosts company culture and pride.
Murder Mystery
Murder Mystery is a fun team-building activity that alerts employees in an office of a sudden crime. This creative game is a great way to develop relationships with the team.
If you don’t know how to plan for the game, you can seek assistance from event companies to arrange it for your team. It is about building relationships via problem-solving among teammates and takes 2 to 3 hours.
Start by picking a theme for the party. Try to plan for the murder story, retaining the suspense and excitement factor like James Bond, Sherlock Holmes, and Scooby-doo. Costumes and props can bring a real feel to the game when employees play specific roles.
Community Service
Other than games and activities, a team-building exercise can also do some real good, like volunteering staff for community service. It boosts company culture and pride.
Amazing Race Office Edition
Create multiple challenge stations around the office or venue. Teams race to complete tasks like trivia questions, physical challenges, or creative problems. Promotes friendly competition and collaboration.
Human Bingo
Create bingo cards with traits like “Has traveled to 3+ continents” or “Speaks two languages.” Team members mingle to find colleagues matching each square. Excellent for large group networking.
Charity Build Challenge
Teams work together to assemble care packages, build furniture for charity, or create items for local nonprofits. Combines team building with community service for meaningful impact.
Office Olympics
Set up multiple game stations with activities like paper airplane contests, desk chair races, or typing competitions. Rotate teams through stations for maximum engagement.
Innovation Tournament
Present real business challenges and have teams brainstorm solutions. Include pitch presentations and voting for best ideas. Combines problem-solving with strategic thinking.
Time Capsule Creation
Large teams collaborate to create a company time capsule with predictions, current team photos, and messages to future employees. Builds long-term thinking and shared identity.
Team-building Activities for Remote Groups
Remote groups are common in this new hybrid model of work. Some interesting activities to boost performance management are as follows:
Sharing a Goal
Formal policies aren’t enough to build a trustworthy team. A strong team builds on the foundation of support and trust. So, encourage colleagues to share non-work goals with one another, to strengthen and deepen bonds. Staff can then ask one another about the progress of their goals and keep motivating one another.
Introvert people are less likely to open up about their dreams. However, friends and colleagues close to them can encourage them to speak their hearts out. This is how a whole team can be each other’s support to speak up their minds.
Working in remote mode can get lonely, and a little non-work conversation or good news is significant to brighten your day. So, create a ‘good news’ conversation channel and invite team members to share recently happened news that has made them happy. It can be any little thing in life that makes you smile or boosts your mood.
Whatever the news be, sharing can be a great conversation starter and bring teams closer, allowing each to celebrate success even when working remotely.
Send Daily Snapshots
Sharing daily snapshots is a simple way to bring teams closer. Encourage team members to post something daily, whether it’s the lunch photo, the dress they are wearing, or anything new in life, and make collages of these shared moments.
As teams start to comment on the snapshots, it starts a conversation. It is how non-work and simple daily chat can strengthen the team bond through better insight into their lives. However, not everyone in a team has to share pictures every day. It is about team engagement and generates talking points among the members. You might get excited about what the other member is going to post as it becomes a routine activity.
Virtual Escape Rooms
Use online platforms like Breakout or The Escape Game for digital escape room experiences. Teams solve puzzles together via video call, promoting problem-solving and communication.
Online Cooking Class
Send ingredient kits to team members’ homes and cook the same recipe together via video call. Creates shared experience and casual conversation opportunities.
Digital Scavenger Hunt
Create lists of items team members must find in their homes within time limits. Include categories like “something blue,” “childhood photo,” or “favorite book.”
Virtual Book Club
Select business or personal development books for monthly discussions. Rotate discussion leadership to give everyone presentation practice and engagement opportunities.
Online Game Tournaments
Organize tournaments using platforms like Kahoot, Jackbox Games, or online board games. Create leaderboards and prizes to maintain engagement over time.
Show and Tell Sessions
Organize tournaments using platforms like Kahoot, Jackbox Games, or online board games. Create leaderboards and prizes to maintain engagement over time.
Virtual Coffee Chats
Pair different team members weekly for 15-minute informal video calls. Provide conversation starters and rotate pairings to ensure everyone connects.
Activities to Boost Your Team’s Creativity
Escape Rooms
Escape rooms are a popular team-building activity that can be played in office space. Though employees cannot get a professional escape event setup, an exciting storyline can be fascinating for players, followed by challenges and puzzles. This 1 to 2 hrs of the game boosts critical thinking, communication, teamwork, and problem-solving ability.
The game starts with a storyline that is engaging and guides players through many challenges. It is easy to start with the final objective to develop the challenges and puzzles for the game. The players should start to game as a mission together.
Try to inspire players to complete the challenge faster by luring them with extra credits to complete a challenge. A creative and fun escape game is fruitful for everyone taking part in it.
Shout Outs
Shout Outs are simple games to encourage employees to acknowledge others’ achievements. The game is interesting to incorporate into the working schedule, without hampering work productivity. It boosts the appreciation of coworkers in public.
In this, one person will call out their recent achievement along with one of their colleague’s achievements. It is an effective means to boost appreciation and positivity in the office.
The Perfect Square
Make your group sit in a circle. Each member then put on a blindfold. Next, take a long rope and tie its end together. Every person should have the rope in their hands. Now leave the circle, and instruct members to form a square using the rope and without removing the blindfold. If the team assumes they have formed the square, ask them to remove the blindfold and see what they accomplished.
The creative game boosts leadership styles and communication. Once you start the game, there will be team members who want to give directions and who want to take charge. However, the team has to work together to create the ultimate square. It requires each of them to communicate when being blindfolded.
Classify This
Collect a variety of objects and put them on a center table. With a broader array, the game can become thought-provoking. Pick jewelry, dinnerware, office supplies, game pieces, toys, and others. Try to include at least 20 different items. Collect the items first.
Break the teams playing into groups; each group should have a pen and paper. The team members should get a clear view of every item picked for the game. Then, ask them to classify the items into four groups and list them on the sheet. They should list it on their own, without letting other groups know. Then, the spokesperson from each group should reveal how they classify the objects and the reasons behind them. It can depend on the materials it is made of or the functions it performs.
The exercise encourages creative thinking and teamwork, where the team also rethinks how they classify everyday objects and looks for commonalities in otherwise unconnected objects. It leads to a discussion on how to think of out-of-the-box solutions and fix problems.
Final Thoughts
Start planning for the above-listed activities that boost team building, promotes creative thinking, instill team trust, and encourage communication. Building an efficient team is an essential part of an organization, whether in hybrid or virtual mode. In addition, a better chance to know each other in a team professionally and personally, and communicate outside office work is a great way to encourage engagement among team members. Knowing little details about each other can make team members feel they are in the same space. Now, go ahead, plan, and bond.
As soon as an employee joins an organization, the HR managers start with the onboarding process to equip the employee with the job role, necessary tools, security measures, process and product training, and mission, vision, and goal of the organization. These practices usually last for 2-3 days, and the employee is inducted into a team.
Usually, HR then meets with the employee during the review process after a year or during an exigency. During this period, an employee might develop concerns and issues that should be addressed to avoid any conflict.
With years of experience and research, hiring managers have started to understand the importance of holistic employee development and how it can impact the achievement of organizational goals. The pandemic-led challenges have instigated an array of changes for organizations to balance out with their current process and develop talent that can bring better results.
The great resignation has completely overthrown the traditional practices of employee nurturing. The emphasis now is on retaining the newly inducted employees through practices like learning and development, skill enhancement, employee engagement, and conducting frequent reviews.
As per a report by Glassdoor, it takes around eight months for a new employee to get fully onboarded. Much research has shown the importance of nurturing and creating a good employee experience for the first 90 days of an employee’s journey. The best way to achieve this is by conducting frequent employee reviews that are focused on the employee’s overall experience in the organization.
The practice of conducting employee reviews is not new to organizations, but the latest development encompasses 30-60-90-day reviews. It involves checking in on employees to understand their concerns and provide them with enough support to get accustomed to the organizational culture and values. Because of the recent shift to hybrid work models and rapidly changing business practices, it has become more important that organizations create a strategy to conduct frequent reviews.
Conducting 30-60-90 day reviews helps employees in understanding the culture, business practices, team structures, short-term and long-term organizational goals, and expectations from them as per their job roles. During the initial period of employment, employee productivity usually lingers around 25%. At this stage, a human resource manager should work on getting an employee acquainted with the process and tools, rather than emphasizing increasing their productivity.
For employers, it gives them the opportunity to identify any gaps in employee onboarding and development and provides a platform to share their expectations with employees. They can also initiate corrective actions to address employee concerns and delegate resources for employee development. Managers can also discuss the performance of employees on various parameters and offer them constructive feedback to enhance their performance.
2025 Trends Transforming 30-60-90 Day Performance Reviews
The landscape of performance reviews has evolved significantly. Here are the key trends shaping 30-60-90 day performance reviews in 2025:
AI-Powered Performance Analytics:
– Companies using AI for onboarding report 50% improvement in new hire time-to-productivity – Automated goal-setting and progress tracking reduce administrative burden – Predictive analytics help identify retention risks early
Remote-First Review Strategies:
– 63% of remote employees report inadequate training during onboarding – Video-based check-ins increase information retention by 67% – Digital collaboration tools enable more frequent touchpoints
Personalized Development Pathways:
– Micro-learning modules tailored to individual progress – Skill-gap analysis integrated into review processes – Career pathing aligned with company growth trajectories
What are 30-60-90 Day Reviews?
30-60-90 day reviews are an employee engagement and development strategy opted by various organizations for newly inducted employees. The process involves checking in with employees frequently and developing a standard practice to conduct reviews during the first 30, 60, and 90 days of an employee’s tenure in the organization.
During the reviews, managers can share their feedback with the employees and reflect upon their performance during the review period, using performance review examples to provide structured assessments. This helps in laying down a path for performance tracking and aligning employee goals with organizational objectives. Moreover, it also gives new hires an opportunity to discuss their career objectives and ambitions with their managers. Hence, these strategic reviews help in the learning and development initiatives of employees and carve out a career path based on their skill sets and organizational requirements.
30-60-90 day reviews help in laying out a standard procedure for employees to measure their performance against the set benchmark. This helps leaders and managers recognize the best talent and reward them for their excellence. It also leads to the development of action plans for employees with low performance and engagement. Moreover, during the annual appraisal process, managers can refer to the documented reviews and measure improvements and employee performance against the goals set up during the review period.
The added advantage of conducting 30-60-90 reviews is the measurement of the engagement level of the newly hired employees in the organization. Employee engagement is one of the most important aspects of retaining and nurturing talent. Through an effective and strategic review process, organizations can create an action plan for increasing employee engagement and productivity. Furthermore, it aids in reducing the turnover of the newly recruited employees.
Statistics on 30-60-90-Day Reviews
Let us look at some statistics regarding employee onboarding practices, employee reviews, and engagement.
Just over 12% of employees believe that their employers did a great job while onboarding new employees (Source: Gallup2)
69% of employees are more likely to stay in the organization for three years if they have had a great onboarding experience. (Source3 SHRM)
58% of new employees with structured onboarding experience are likely to stay after three years in the organization.
Nearly one-third of all new hires quit their jobs within the first six months (Source: SHRM4)
As per a study conducted by the Center for American Progress, the cost of losing a highly trained employee is 213% of their salary (Source5: AmericanProgress)
A report shows that only 29% of employees know whether their performance is up to the mark and just 50% of employees know if they are doing well in their job roles. (Source6: Leadership)
Only 14% of employees feel that their performance reviews inspire them to improvise on their work. (Source8: Gallup)
A study found that 44% of employees feel more engaged when their managers hold regular review meetings with them. (Source9: Gallup)
The above statistics are a good indicator of the importance of having a good employee experience for new as well as existing employees. It is therefore important to have frequent reviews to overcome any challenges faced by employees. Let us now discuss the importance of 30-60-90-day reviews in the initial phase of an employee’s journey.
Importance of 30-60-90 Day Reviews
The pandemic has caused a massive shift from traditional work setups to working from home or hybrid work environments. Most new employees are being onboarded virtually, and they miss the opportunity to physically interact with the team and human resource managers.
In such a scenario, it is increasingly difficult to understand the problems and concerns of the new hires. Therefore, to overcome this barrier, it is imperative to have a review mechanism that provides a platform for employees to have a discussion with managers.
Having a structured 30-60-90 day review process helps in checking in on employees at a fixed interval and giving them feedback on their performance. Let us discuss why it is important for organizations to have a review process in place.
Opportunity to Identify Gaps in the Onboarding Process
Employee onboarding is the first impression of an employer towards its employees. A report by Glassdoor states that strong onboarding practices can increase employee retention by 82% and productivity by over 70%. Therefore, it is important to support new employees in the initial 90 days of their employment.
Organizations with better onboarding practices utilize tools and technology to equip employees to succeed in their new positions. Furthermore, emphasizing assimilation and fostering employee socialization can boost employee confidence in the organization.
Employers can identify gaps in their onboarding process by having an employee review at the end of the first 30 days of employment. It is an opportunity to understand why the employee felt disengaged and left out during the onboarding process. Additionally, managers can also initiate a formal mentoring program to help employees acquire the skills required for task accomplishment.
Moreover, it helps employees build connections with other employees in different departments. Conducting reviews also helps in understanding the mental health of employees and creating measures for overall employee well-being.
Once the gaps in the process are identified, organizations can initiate corrective actions to improve the overall employee experience. For example, employee engagement and social connection can be improved by physically or virtually introducing employees to different team members and starting a buddy system for new hires. Formal mentoring and coaching sessions can be conducted for employee development and skill enhancement.
A Benchmark for Measuring Employee Performance
In addition to having a great onboarding experience, it is important to set up a benchmark for measuring the performance of new employees. As per a research, the productivity of employees in the first 90 days of employment increases as they adapt to the company culture and understand the various aspects of performance. In order to gauge and measure employee performance, managers must initiate 30-60-90 day reviews.
Managers can set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for employees and measure performance based on goal achievement. By having various checkpoints, it becomes easier to align employees towards organizational goals and provide them with guidance for improving their performance.
In addition, employees are also aware of the performance standards they are expected to achieve in order to create a strong foundation in the organization. Having a realistic timeframe helps with the smooth transition of new employees into the organization.
Building a Foundation for Employer-Employee Relationships
Conducting reviews goes a long way toward establishing a strong foundation for the employer-employee relationship. That’s why employee bonding and relationship building are rated as one of the most important aspects of engagement, productivity, and retention.
30-60-90 day reviews not only help managers reflect upon employee performance but also create a two-way communication channel to develop a connection with new hires.
Social connectivity is quintessential for employee engagement and development, especially for new employees. Therefore, human resource managers should collaborate with leaders to develop a well-defined review plan that supports social connectivity over multiple platforms.
Fostering connections and relationships are equally important for employees working from home and from the office. Therefore, leveraging virtual tools to conduct reviews can help resolve the challenges of geographically dispersed employees.
Understanding Employee Wellbeing & Mental Health
Employee well-being and mental health have gained prominence with the adoption of a hybrid work culture. The lack of human connectivity and social connections is a predominant factor in debilitating mental health. Mental health issues become a pressing issue when employees start feeling distant and neglected by their employers.
Even for new employees, addressing personal challenges they encounter at the workplace or because of the business modus operandi is critically important.
Conducting reviews at frequent intervals can help managers keep track of employee well-being and mental health. Furthermore, fostering a supportive culture and encouraging employees to share their problems during reviews can help in identifying any underlying concerns.
While conducting reviews, managers can assure employees that their mental health is of prime importance to organizations. Such activities help in assuring employees that they are being cared for.
Benefits of 30-60-90 Day Reviews
A report11 by Gallup on “How Millennials want to work and live”, highlights that 44% of employees feel more engaged when their managers hold regular review meetings with them. In contrast, only 20% of employees who do not meet their managers frequently are engaged.
The above statistics highlight the importance of conducting frequent reviews for employee engagement. By prudently implementing a 30-60-90 day review plan, organizations can transform their employees into a dynamic and self-driven workforce.
The benefits of conducting reviews extend to all the stakeholders involved in the organization. Let us understand how the application of 30-60-90 day reviews benefits both employees and employers.
Benefits For Employees
Employees can take advantage of the 30-60-90 day reviews and leverage the knowledge grasped during the process to improvise on their performance. Check out the list of benefits for employees below.
1. Personal and Professional Development
Conducting reviews in the initial phase of an employee’s journey goes a long way in their personal and professional development. During reviews, managers can highlight the strong and weak areas of employees and suggest a learning path for them to enhance their skills and productivity. In addition, employees can also discuss plans for their career progression with the managers. It helps them in envisioning their future roles in the organization.
The reviews are of great help in identifying personal development gaps that could lead to low performance by an employee. An extensive 30-60-90 day review plan also suggests interpersonal areas of an employee to improve upon.
2. Asking for Support
Every organization tries to foster a supportive environment for its employees. But not everyone can achieve it because of the challenges put forward by culture, hierarchy, and personal inhibitions of employees. One of the ways to achieve higher organizational efficiency is to have a respectable and supportive culture that allows employees to reach out for help.
Employee reviews give an opportunity to new employees to ask for support from their managers. Based on the discussion, managers can initiate mentoring and coaching sessions, 1:1s with employees, and other activities deemed necessary for employee support.
3. Boosts Employee Morale and Motivation
A self-driven and motivated workforce is the strongest asset of an organization. Finding suitable and dynamic employees requires hard work from the human resources department. But developing them into a performance-driven and committed workforce is far more challenging.
Employees are skeptical about the organization during their first 90 days of employment. In this phase, they are unsure about the culture and business environment, and require more than just formal training to assimilate into the organization.
Conducting planned and strategic reviews helps in boosting employee confidence and motivation. Frequent check-ins and 1:1s organized by managers make employees feel supported and cared for, which ultimately sets them in the right direction.
Benefits For Employers
Employee reviews directly impact the performance of employees and, thereby, the organization’s output. A well-structured and strategically laid-out review plan can benefit the organization in the following ways:
1. Reducing Employee Turnover
As per the statistics12, over one-third of all new hires leave within the first six months of their tenure. This is irrespective of the job role and position being offered by the organization.
The great resignation has further added to the woes of human resource managers. They are now battling with the problems of finding new talent and ensuring they stay committed for a long period of time. To contain the premature exit of employees, it is crucial for organizations to consider strategic ways to convert them into long-term employees.
Using 30-60-90 day reviews helps in understanding the challenges faced by employees and finding strategic solutions to them. Managers can pick up early warning signs during the review process and can take preemptive action to contain attrition. It may include training and incentive programs for employees. A well thought out 30-60-90 day review process can reduce employee turnover at all levels of the organization.
2. Increasing Employee Engagement
Employee engagement is one of the most important traits of a performance-driven organization. Engaged employees are likely to stay for a longer period in the organization and are more oriented towards business goals. Employee engagement is an organizational strategy that helps in achieving higher levels of performance, better retention, and better quality of work.
One of the benefits of conducting 30-60-90 reviews is that it increases employee engagement. Frequent reviews help employees understand their performance gaps and provide them with learning opportunities. Furthermore, managers can better assess the skills of new hires and align them to the respective projects where they can best utilize their skill sets.
3. Metrics for Performance Measurement
Employee reviews are a great way to assess the performance of new hires. Every employee has a unique set of skills and competencies, and utilizing them effectively is the key to increasing organizational efficiency. By measuring performance at regular intervals, managers can ascertain that employees are on the right track. It also helps in comprehending any challenges that are undermining the performance of employees.
Reports and data created at the time of conducting 30-60-90 day reviews help in recognizing the efforts of employees. Additionally, it is also used to identify low performing employees and help them improve.
4. Reward and Recognition
SurveyMonkey conducted a survey13 with over 1,500 employed Americans to find out how recognition at their organization helps them. Following were the key highlights of the survey:
Around 82% of the employees felt that recognition is linked to happiness in the workplace.
Over 32% of surveyed employees felt that recognition improves the way their colleagues interact with them.
Public recognition, according to 68% of employees, increases their chances of getting a raise or promotion.
These above statistics highlight how important recognition is for employees. A reward and recognition platform supports employees in achieving their highest potential and thereby increasing organizational efficiency.
30-60-90 day reviews are a great way to identify potential employees and reward them suitably for their efforts. Effective utilization of such a review mechanism can help in building a skilled, performance-driven, and happy workforce that is ready to go the extra mile to achieve organizational goals.
5. Identify Training Needs
Learning capabilities and aptitude are different for every employee. Even after going through the initial level of training and induction, there might be scenarios where an employee needs more support.
To handle such challenges, it is important to organize reviews where employees can share their concerns regarding performance. Therefore, managers should create an open channel of communication during reviews that helps employees clearly state any obstacles in their learning process.
Performance metrics, such as quality of work, customer centricity, and productivity level collected during 30-60-90 day reviews help in identifying employees with training needs. Managers can create a training plan to improve the performance of such employees.
If multiple employees are struggling in the same learning areas, then it can be because of the wrong practices and systems being followed for the onboarding process. Such issues can be handled by identifying the loopholes in the system and initiating corrective actions.
6. Employee Development
The entire process of the performance management system revolves around employee development. Such development plans have to be built in collaboration with employees. It ensures that their skills, competencies, and expectations are taken into consideration while planning the activities.
A successful employee development plan involves conducting reviews to understand the current performance level of employees and setting SMART goals to help them achieve better results.
Managers usually inculcate employee development initiatives while creating a 30-60-90 day reviews plan. It offers a constructive and flexible way of reviewing new employees’ performance and motivating them to achieve more. 30-60-90 day reviews are a holistic approach to employee development.
7. Enhanced Remote Team Integration: Remote work has fundamentally changed how new hires experience their first 90 days:
– Virtual Buddy Systems: Pair remote employees with experienced team members for daily check-ins – Digital Culture Immersion: Use interactive platforms to showcase company values and traditions – Hybrid Meeting Protocols: Ensure remote participants are fully included in review discussions – Time Zone Considerations: Schedule reviews at optimal times for distributed teams – Technology Proficiency Assessment: Evaluate and support new hires’ comfort with remote work tools
How to Create a 30-60-90 Day Review Plan?
Creating a review plan requires collaboration from multiple departments. Human resource managers must inform the team leaders/managers regarding the onboarding of new employees and arrange sessions to discuss the review plan. The process is highly dependent on the job position and role of the employee joining the organization.
By undertaking the below discussed best practices, human resource managers can create an effective 30-60-90 day review plan.
Step 1: Setting Realistic Expectations
The time spent between sharing a job post and getting someone onboarded can be too overwhelming for the organization. At this time, managers can be tempted to get a new employee rolling and take up the responsibilities for which they were hired. Instead of pushing them to a quick start and passing on innumerable duties, it is preferable to let them gradually transition into the organizational culture. Undertaking 30-60-90 day reviews helps managers understand employee strengths and weaknesses and strategically place them in projects.
To set the course in action, managers can select two or three prime responsibilities/goals for the new hires and explain to them the process to achieve them. Setting realistic, quantifiable, and focused goals should be the foundation of conducting reviews.
Step 2: Creating Milestones to Measure Performance
The first 90 days of an employee’s journey are full of twists and turns. In this period, they are assimilating into the organizational culture and understanding the intricacies of the new business environment. Furthermore, if they are working from home, it is comparatively difficult to understand the tools and technologies.
Setting milestones while conducting the reviews helps managers measure the performance of employees. Additionally, it ensures support and collaboration in the initial days of employees.
Highlighting accomplishments and achievements of milestones is equally important in the review process. Positive feedback in the initial phase goes a long way in building employee confidence and boosting productivity. Similarly, providing constructive feedback for performance improvement is equally important.
Therefore, managers must set milestones and measure performance to provide employees with clear and open feedback for improvement.
Step 3: Collaborating With New Hires
New employees join the organization with some specific vision, expectations, and mindset. Even the business environment and culture can be new to them. In such a scenario, it is important to understand the personal goals and objectives of employees and help them align with the organizational goals.
In the first few weeks after joining, managers should talk to employees and try to comprehend their learning objectives. Based on the inputs collected from them, managers can modify the 30-60-90 day review plan. It will ensure that employees’ expectations and personal goals are also included in the plan.
It is also an opportunity to inculcate collaboration and teamwork while designing the review plan. The fresh perspective of new employees helps in bringing dynamism and strategicness to the review plan.
Step 3: Check-in Regularly
As the employees are getting accustomed to their new roles and responsibilities, it is important for managers to check in with them frequently in the initial days of their joining. It gives employees an opportunity to talk about their concerns and suggest any improvements to the current processes. Therefore, either organizing a daily catch up or weekly 1:1s will steer the employees in the right direction.
Through regular check-ins, managers can track the performance of their employees and can understand their strengths and weaknesses rather quickly. Furthermore, they can identify any persistent issues like difficulty in integrating with the team or in understanding the business dynamics and find solutions collaboratively.
Step 4: Measuring the Impact of the Plan
“You can’t improve what you don’t measure.” by Peter Drucker.
The objectives of a 30-60-90 day review plan should be quantifiable and measurable. Using SMART goals can help in making the plan more process-driven. The ultimate aim of conducting reviews in the first 90 days of an employee is to ensure their smooth transition into the business environment and help them align with the organizational objectives. Therefore, by setting measurable goals, managers have a fair understanding of employees’ strengths and weaknesses.
At the end of the review plan, it is easier to reflect upon employee performance against the set objectives. The insights collected from reviews help in creating further action plans for employees with low performance. It includes conducting formal mentoring and coaching sessions, skill development and enhancement, and buddy programs.
An Empathic, Compassionate, and Supportive Approach
Conducting reviews in the time of a pandemic is quite challenging. As the majority of employees have been working from home for months, it has become difficult to evaluate their performance. Managers face this dilemma of fairly conducting the review and also considering the impact of the COVID-19 crisis in their assessment.
Mark Mortensen, associate professor of organizational behavior at INSEAD, says that even in normal times, it is difficult for managers to conduct a performance review. Reviews are tense, stressful, and anxiety-inducing at times. Now, in the middle of the pandemic, it is much more difficult to assess an employee on performance parameters.
In such a scenario, managers must be empathic and compassionate towards their employees during the review process. They must first ask about their physical and mental health and ensure that their wellbeing is of utmost importance to the organization. Taking a compassionate approach can help employees overcome challenges and share their concerts with managers.
How to Conduct 30-60-90 Day Reviews?
Conducting frequent reviews of new employees lets them know that the organization has a vested interest in their growth and development. Moreover, it also helps in finding performance deficiencies and starting corrective actions to scale up employee development.
The learning curve of a new employee varies from three months to six months based on their job role and designation. Therefore, conducting reviews at the right time with the right assessing parameters is important to having meaningful employee reviews.
Communicating the 30-60-90 day review plan to the employees is the first step in preparing for the evaluation process. During regular 1:1s and check-ins, managers should substantiate the importance of reviews and lay out the detailed process to employees. It helps them to understand its effectiveness on their performance.
Below we have highlighted the details of the 30-60-90 day review process individually, along with the questions that managers should ask while conducting reviews. Please note that 30-60-90 day reviews are highly dependent on the designation and role of the employee upon joining the organization. Therefore, managers can alter the process and change the questions as per the requirements.
Advanced 30-60-90 Day Review Techniques for 2025
Multi-Modal Review Approaches
Traditional one-on-one conversations are evolving to include:
1. Video Reflection Assignments
New hires record brief video updates on their progress
Managers provide video feedback for more personal connection
Creates valuable documentation for future reference
2. Peer Integration Assessments
360-degree feedback from team members
Collaboration effectiveness evaluations
Team chemistry and cultural fit assessments
3. Skills-Based Micro-Reviews
Weekly 10-minute check-ins focused on specific competencies
Real-time project-based evaluations
Continuous learning pathway adjustments
Digital-First Review Formats
Virtual Reality Onboarding Reviews
Immersive environment simulations for role-specific scenarios
Safe space practice for high-stakes situations
Enhanced engagement through interactive experiences
Gamified Progress Tracking
Achievement badges for milestone completions
Leaderboards for team integration activities
Point systems for skill development progress
Conducting a 30 Day Review
As soon as the new employees are inducted into the organization, they are assigned tasks to learn the product, understand the business culture and environment, and get an overview of the business dynamics. During the first few weeks of employee onboarding, managers should communicate frequently with the employees to give them an understanding of their job roles and responsibilities.
Providing supporting material like product documentation, departmental inductions, technical guides, and historical data will help employees ramp up the processes. It is good practice to introduce employees to the team members that they will be working closely with. Make sure that things don’t get too overwhelming and that there is no information overload for employees.
Conducting frequent 1:1s in the first month is helpful in understanding the skill set of the employee. It guides the manager in defining and communicating performance expectations and employee goals for the first 30 days. The frequency of 1:1s can be adjusted once the employee is well versed in the job role.
A 30 day review is conducted at the end of the first month of the employee’s tenure. The review involves a detailed discussion between the employee and the manager. Managers must ensure that they convey information regarding the review well in advance. It helps employees to prepare their responses for the process.
Questions to Ask in a 30 Day Review
The following questions will help you get better insight into the initial 30 days of the employee.
How is your overall wellbeing and mental health?
Please rate the overall onboarding process.
How would you rate the first 30 days of your employment?
Are the job responsibilities in tandem with the expectations you had before joining?
Do you require more clarity about the job role and responsibilities?
Do you feel any challenges with the current role?
What does the best day at work look like to you?
What do you like the least about your current role?
Do you have sufficient tools to deliver on your job responsibilities?
Is the company culture congenial and growth-oriented?
Do you feel welcomed and supported by your team?
Have you achieved your 30-day goals?
What goals do you have for the next 30 days?
Do you have any feedback for your manager and the team?
Conducting a 60 Day Review
The first 30 days of the employee’s journey are usually about learning the product and business culture. In the next 30 days, also known as the development phase, the actual growth of an employee begins. Now that the employee is accustomed to the business practices and company policies, it is time to check on their performance and also collect feedback on their day-to-day activities.
A 60 day review helps in gaining insights regarding the performance and development of employees. During these 60 days, employees must have had an opportunity to interact with the clients, resolve customer/client queries, and provide resolution to internal issues. Therefore, it is important to collect employee feedback at this interval to understand the following:
The process structure and its efficiency
Overall job satisfaction of employees
Speeding up employees to their job responsibilities
Identify any challenges in the current job role
Providing them with actionable performance insights
A 60 day review is the right time to assess the contribution of employees to the achievement of short-term team goals and organizational objectives. It also gives an opportunity to discuss the long-term career vision of the employees and offer them managerial insights into their performance.
Questions to Ask in a 60 Day Review
The following questions will help in conducting a 60 day review effectively.
Did you face any challenges in adapting to the organizational culture and values?
Did the training sessions conducted in the first 30 days prepare you for the job responsibilities in the next 30 days
Is there anything that you would like to change about the onboarding process conducted so far?
Are the job responsibilities the same as per your expectations?
Have you got sufficient training sessions to perform the current job role?
Do you believe your job role is in line with the organization’s values and mission?
What would you like to learn more about in your current job role and how can the organization help in achieving that?
Is the organization’s culture and business dynamics the same as shared during the interview process? Is there anything you would like to improve in the overall process, from interviewing to onboarding?
Do you get enough support from the supervisor?
Do you enjoy working with your team?
How do you generally collaborate with team members for work?
Have you completed your 60 day goals?
What challenges did you face while working on the goals?
What goals do you expect for the next 30 days?
Do you need any additional support to complete your next 30 day goals?
Conducting a 90 Day Review
The end of 90 days usually marks the completion of the probation period for most of the employees. At this time, employees have undergone extensive training to understand the products, have a fair understanding of their job roles, and are prepared to take on responsibilities like other team members.
A 90 day review serves a major role in collecting intelligent insights about the extensive onboarding process followed by the organization. The feedback collected at this stage will help in making the processes better aligned to employee growth and development.
Managers need to perform a thorough check of the employee’s performance in the review to understand their competencies, engagement and productivity levels, collaboration with team members, and collect any feedback pertaining to their managers, team members, and organizational processes.
Questions to Ask in a 90 Day Review
The following questions resonate with the 90 day review process. Please note that questions regarding job responsibilities can be changed as per the designation and role of the employee.
Did you complete your training sessions organized to understand the product/process, organizational culture, and business dynamics?
Please share your feedback regarding the onboarding process.
What would you like to change in the current learning process of the organization?
Did you receive enough support from the colleagues? Who has been the most helpful to you so far?
Do you have any particular questions related to your job roles and responsibilities?
Do you feel comfortable asking for help from your team members?
Is your manager approachable and helpful in discussing personal and professional matters?
How would you rate the leadership of the organization? Is there any suggestion for the current leadership?
Has your manager conveyed the expectations the organization has from you?
What are your long-term goals for the organization?
How was your experience with the extended onboarding process implemented by the organization? Are there any suggestions to make it better?
30-60-90 Day Reviews Template
The downloadable template is a ready-to-use employee performance evaluation toolkit that will help in strategizing the first three months of new hires. Managers can use this template to understand their employee’s overall performance and provide actionable feedback to them.
We have also included an employee performance evaluation form in the 90 days review tab to help gauge the achievement of employee goals. To understand the development of employees on various parameters the template is segregated into different sections
Many organizations have reaped the benefits of a well-defined and structured 30-60-90 day review process. By building a standard process for extensive reviews, organizations can achieve higher productivity, engagement, and low employee turnover.
Moreover, it helps employees form a strong connection with their colleagues and organization, thereby making them more loyal and committed towards the employer.
With the advancement in the technical landscape, organizations have started utilizing performance management software to manage their workforce. These people enablement platforms like Engagedly offer deeper insights about employee performance.
Through features like SMART goals setting, real-time feedback, ongoing check-ins, and 30-60-90 reviews, organizations can keep track of employee activities and offer innovative solutions to help engage, enable, and empower their workforce.
Every organization aims to optimize the performance of its employees through a well-defined performance cycle in order to reach its objectives. To accomplish this, it is essential to have a system in place that enables managers to oversee, mentor, train, and inspire their employees.
This is where the concept of a performance management cycle comes into play. The performance management cycle can be divided into four key stages: planning, monitoring, developing and reviewing, and rating and rewards.
This article will delve into the different stages of the performance cycle, providing a comprehensive understanding of what a performance management cycle entails and why it is crucial for organizational success.
Explore the nuances of the performance management cycle in this video.
TL;DR Summary:
A Performance Management Cycle helps organizations plan, monitor, develop, and reward employee performance to align with business goals.
It consists of 4 stages: Planning, Monitoring, Developing & Reviewing, and Rating & Rewards.
This cycle improves engagement, reduces turnover, identifies issues early, and boosts overall performance.
Tools like Engagedly support each stage with SMART goal setting, continuous feedback, personalized learning, and transparent reviews.
Engagedly enhances engagement, alignment, and decision-making with data-driven insights and integrated recognition systems.
The cycle is evolving from annual reviews to agile, feedback-driven systems for continuous growth and organizational success.
What is a Performance Management Cycle?
The performance management cycle is an ongoing process that involves planning, implementing, measuring, and analyzing employee performance. Its goal is to achieve comprehensive performance management by aligning employee success with that of the organization.
Traditionally, the performance management cycle lasted a year, with companies often using a yearly appraisal sample to guide the process. However, in today’s labor market, focused on feedback, employee engagement, and experience, companies are increasingly adopting a more agile approach to performance appraisal.
This shift has prompted organizations to embrace shorter performance appraisal cycles, often quarterly or semi-annually, along with a culture of frequent feedback.
Why is a Performance Management Cycle Important?
So the next burning question to ask is why are performance management cycles important to a business? Well, there are a few of them, and we will look at some in this segment.
Builds Strong Relationship
One of the objectives of implementing a performance management cycle is to ensure that employees, throughout the performance cycle, see the bigger picture of their goals. Being part of the planning process and being constantly given feedback improve engagement. This can help build trust and foster a stronger relationship between employees and management.
Keep Employees Engaged
According to an article by Gallup, employees whose managers held them accountable for their work are 2.5 times more likely to be engaged. This aspect is particularly significant in a world where employees demand better and more frequent feedback from their employers.
High employee turnover is always a nightmare situation for employers. It costs employers to hire a new person, and the vacant space can also lead to a potential loss of revenue.
Adopting a performance management cycle plan will help because there will be defined goals, regular feedback, support for career development, rewards and incentives, and a career path within the organization. All of this will give employees the idea of an organization that cares.
Help Detects and Fix Problems Faster
The monitoring aspect of the performance management cycle helps organizations find problems faster and potentially solve them. The problem may be an underperforming employee, an overbearing manager, or the unrealistic nature of a set goal.
If left unsolved, it can affect the productivity of an employee or a team. The performance appraisal cycle can help nip the problem sooner rather than later.
Improves Performance
Businesses with laid-out objectives and plans always set themselves up to achieve them. The performance appraisal cycle allows organizations to plan, monitor, and review their set goals and achieve them.
Employees have to take regular feedback and continuously improve themselves to keep up with their objectives. Doing this helps them stay in line with the organizational goal, which improves performance.
4 Stages of the Performance Management Cycle
The concept of the performance management cycle first originates in Peter Drucker’s 1954 book called ‘Management by Objects.’ His book explained how management must break organizational goals into smaller individual and team goals that are also definite.
The most commonly cited performance management cycle is by Michael Armstrong in his book ‘Handbook of Performance Management.’ In it, he described the four stages of a performance appraisal cycle. They are plan, act, track, and review. Over the years, it has been refined to tailor to the demand for the present needs of the organization.
The performance management cycle definition encompasses the following four stages:
Planning
Monitoring
Developing and Reviewing
Rating and Rewards
The specifics of these stages are covered in the section below:
1. Planning
Planning is the first act an organization will have to undertake. Management must first strategize on the goals the company wants to meet in the first place before meeting with employees and other team members to assign goals to them. After there is clarity on the pact of the organization, then management can set personal goals, targets, and specific objectives for teams and employees.
In setting goals for the team and employees, it’s best to plan alongside them. A meta-analysis by Cawly, Keeping & Levy (1998) shows that involving employees in setting their goals allows them to perceive fairness because they see the reason behind it. Also, there is a sense of belonging and satisfaction when you include them in such activities.
Aside from involving the employees in setting their goals, both parties will also discuss the training and development goals for the cycle. Creating a training and development schedule is necessary to show employees you are interested in their personal growth and career and not only meeting organizational goals.
While planning employees’ goals, managers can apply the SMART framework for efficient goal-setting.
Specific: The goal should be well-defined. It should be clear and not ambiguous.
Measurable: The goal should have measurable indicators to help the employees monitor their progress. There should also be a clear start and an end.
Achievable: While it’s good to challenge employees when setting goals, it’s wise to make the goals reasonably obtainable. It may mean taking employees through a training and development program to equip them.
Relevant: The goal must apply to the individual’s job and the organization’s goals.
Time-bound: The goal must have a deadline. It’s not a goal if there is no set deadline to achieve the required result.
Thus, planning is a crucial part of the performance management cycle, if done right, the other stages flow well.
2. Monitoring
Planning and not following up with it is a recipe for failure. Managers and supervisors are to monitor the goals continuously throughout the performance cycle to ensure progress and alignment.
In the past, managers followed up once or twice a year, but as we now know, this can be ineffective. To ensure the employees are on target to achieve their goals throughout the performance cycle. There needs to be constant follow-up and feedback to iron out any issues and provide support.
Ideally, monthly or quarterly meetings will take place. Some organizations have even opted for weekly or bi-weekly sessions. It should also be possible to adjust deadlines to accommodate unforeseen circumstances or unaccounted variables, for example, a pandemic or a new law in place.
Another reason to monitor continuously is that long-term goals may intimidate and not motivate employees. Managers and supervisors can help by breaking them into monthly or quarterly goals. Spotting problems early on and providing adequate support will only work effectively under a continuous feedback system.
3. Developing and Reviewing
Towards the end of the cycle, the management does a review. If the manager or supervisor worked well with the employee in the first two cycles, then the third one should be nothing more than a formality between the manager and employees. Development entails looking at the cycles before and asking these questions:
If the employee had the required skill set to perform their duty.
How much had they learned from their experience?
Was the training assigned at the beginning of the cycle of use in completing the task?
What other skills should they look to learn?
The aim of the development aspect of the performance cycle is to gauge how well they have developed and what further training they will need to improve.
The review aspect of the cycle focuses on how well the employee or the team did in achieving their goals. It will cover questions like:
Did they underachieve or overachieve?
What enabled them to either underachieve or overachieve?
Did the organization provide adequate support for them?
Are the processes used the very best, or could they be improved?
Was the original goal realistic?
These questions will help the management and employees properly analyze their performance. The third performance management cycle is also when the employee can give their perspective on their performance and receive comprehensive feedback from management.
4. Rating and Rewards
This stage is where management gives its ratings to teams and employees. Management should take appropriate action against employees who don’t meet their goals. It may be a warning, a fine (if such an agreement exists), or termination if it would be impossible to work together. On the other hand, for employees who either meet their targets or overachieve, it is crucial to reward them fairly.
This action sends the message that the company values those who put in the work and get results. It also signals to employees that the organization appreciates their input. This last stage of the performance cycle is essential because not acknowledging your employees can demotivate them, and the worst-case scenario leads to resignation. It can also reduce productivity, knowing that management will not reward their efforts.
After completing a cycle, it’s time to come together again and begin a new one.
How Engagedly Supercharges Performance Management at Every Stage
Performance management is a continuous cycle, not a once-a-year event. It’s about ongoing communication, feedback, and development that empowers employees to thrive and organizations to achieve their goals. Engagedly’s performance management platform streamlines and amplifies every stage of this cycle, turning it into a powerful engine for growth.
1. Planning & Goal Setting
Align Individual and Team Goals: Engagedly fosters goal alignment by cascading organizational objectives down to individual levels. Employees understand how their contributions directly impact the bigger picture, boosting motivation and engagement.
Set SMART Goals: The platform guides employees in setting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals, ensuring clarity, focus, and a roadmap for success.
Continuous Goal Tracking: Progress bars and real-time updates keep employees informed about their performance against set goals, allowing for course correction and adjustments as needed.
2. Monitoring & Feedback
360-Degree Feedback: Engagedly’s feedback tools go beyond traditional manager-to-employee evaluations. Peers, clients, and even self-assessments provide a holistic view of strengths and areas for improvement.
Continuous Performance Conversations: The platform encourages ongoing dialogue between managers and employees, fostering a culture of open communication and regular feedback that drives development.
Pulse Surveys: Quick, targeted surveys gauge employee sentiment and identify potential roadblocks or areas for improvement in real-time, enabling proactive intervention.
3. Development & Coaching
Personalized Learning Paths: Based on individual goals and skill gaps, Engagedly recommends relevant learning resources, training programs, and coaching opportunities, empowering employees to take ownership of their development.
Mentorship Programs: Connect experienced employees with mentees to facilitate knowledge sharing, guidance, and support, accelerating growth and fostering a culture of collaboration.
Performance Support Tools: Engagedly provides access to job aids, knowledge bases, and other resources that equip employees with the tools and information they need to perform their best.
4. Rating & Rewards
Fair and Transparent Performance Reviews: Performance data gathered throughout the cycle informs objective and transparent reviews, eliminating biases and fostering trust.
Rewards & Recognition: Engagedly offers a variety of recognition tools, from badges and shout-outs to gamified incentives, to celebrate achievements and reinforce desired behaviors.
Compensation Alignment: Performance data can be seamlessly integrated with compensation decisions, ensuring fair and motivating reward systems.
Improved employee engagement and retention: A focus on employee development, recognition, and open communication fosters a positive work environment, leading to happier and more engaged employees who are less likely to leave.
Enhanced alignment and goal achievement: Clear goal setting, regular feedback, and ongoing development ensure everyone is working towards the same objectives, increasing the likelihood of organizational success.
Data-driven decision-making: Performance data collected throughout the cycle provides valuable insights that can be used to inform strategic decisions, talent management initiatives, and continuous improvement efforts.
By streamlining and amplifying every stage of the performance management cycle, Engagedly transforms it from a bureaucratic chore into a powerful tool for growth and success.
Conclusion
Peter Drucker built the concept of the performance management cycle on the traditional form of appraising employees. Organizations can tailor it to fit into the budding perception of continuous feedback. The structure it presents has made it timeless, ensuring organizations get it right in maximizing employee performance.
Frequently Asked Questions
Q1. What is the performance management cycle?
Ans. The performance management cycle is a systematic process that organizations use to monitor, assess, and improve employee performance.
Q2. What are the 4 stages of the performance management cycle?
Ans. The performance management cycle involves four primary stages: planning, monitoring, developing, and rating & rewarding, and then loops back to begin anew.
Q3. Why is the performance management cycle important?
Ans. The performance management cycle is important because it enhances employee performance, aligns goals, improves communication, identifies development areas, supports decision-making, and boosts organizational productivity.
Q4. What is the performance management process?
Ans. The performance management process consists of regular meetings and check-ins between managers and direct reports. It includes planning, monitoring, and reviewing employee goals, performance, and their impact on the organization.
Investing in employee training and development is vital for a business’s lasting success. Studies, like LinkedIn’s 2019 Workforce Learning Report, reveal that 94% of employees are likely to stay longer with a company that supports their career growth. The importance of training and development programs cannot be overstated, as they boost sales and profitability and enhance employee engagement, contributing to overall financial success.
In today’s competitive landscape, ongoing improvement through employee training and development is essential for organizational success. Employee development programs are no longer just for top executives; they’re essential for your organization’s prosperity and the well-being of your employees. This blog explores why employee training and development programs are significant and how they benefit both your company and its workforce. Fresh Insight: 72% of companies in 2024 rated their L&D outcomes as ‘excellent’ when they incorporated microlearning, up from 45% in 2021 (Source: LinkedIn Learning)
TL;DR Summary:
Employee training and development improves performance, retention, and engagement, driving long-term business success.
Benefits include closing skill gaps, boosting productivity, enhancing satisfaction, and fostering future leaders.
Programs reduce turnover and help align employees with company goals, culture, and innovation.
Features like personalized learning paths, progress tracking, and mobile access boost effectiveness.
Engagedly LXP stands out with adaptive learning, rich content libraries, and analytics for optimizing employee growth.
Investing in development creates a motivated, skilled workforce and a more resilient, profitable organization.
Watch this insightful video to learn why investing in your team’s growth is crucial for organizational success.
What is Training and Development?
Companies benefit greatly from investing in employee training and development. It helps improve how employees work, encourages new ideas, and helps the company reach its goals. Offering continuous learning opportunities boosts employee engagement, reduces absenteeism, and leads to higher productivity and profits.
In simpler terms, employee training and development mean putting time and resources into helping employees grow. This not only benefits the employees by making them experts in their roles, but also helps the company as a whole.
With a clear understanding of the importance of training and development, organizations can ensure that their employees are always improving and evolving.
A corporatetraining and development program, thus, eventually helps an organization increase employee productivity and performance in their current job roles.
Importance of Training and Development
Employee training and development initiatives play a crucial role in elevating job satisfaction, increasing productivity, and fostering enhanced employee retention. By providing opportunities for learning and growth, organizations empower their workforce with fresh skills and knowledge, paving the way for career advancement within the company.
1. Addressing Performance Gaps
It’s common for employees to encounter challenges in specific areas of their performance. Recognizing the importance of training and development allows organizations to address these challenges effectively by identifying specific areas for improvement, tailored training and development sessions can be crafted to meet individual needs, resulting in a more skilled and competent workforce.
2. Optimizing Workforce Potential
Regular training and development programs empower employees to strengthen their weaknesses and acquire new skills and knowledge. As a result, their overall performance is optimized, benefiting both the employees and the organization. The importance of training lies in its ability to boost productivity and efficiency across the entire workforce, helping each employee reach their full potential.
Skill development not only enhances individual capabilities but also enhances the collective proficiency of the entire workforce, leading to increased productivity and efficiency.
3. Ensure Employee Satisfaction
A strategic investment in employee development and training fosters a sense of contentment among employees. When employees feel that their organization is committed to their growth and professional development, they are more engaged and motivated in their roles. However, for the program to be effective, it must be tailored to the specific needs of the employees, ensuring that the gained knowledge can be readily applied in the workplace.
4. Enhancing Organizational Productivity
In today’s rapidly changing marketplace, an organization’s productivity heavily relies on the skillset of its employees. Training and development programs enable employees to stay updated and acquire new competencies, thereby positively impacting the organization’s productivity.
Recognizing the Importance of Training and Development allows organizations to gain significant advantages. Through strategic investments in successful training programs, employers experience the benefits of a motivated, devoted, and engaged workforce, while employees find value in an organization that prioritizes their growth and well-being. This symbiotic relationship not only fosters a productive work environment but also contributes positively to the company’s overall success.
Participating in comprehensive training and development sessions empowers employees to handle workplace challenges independently, reducing their reliance on constant supervision and guidance. This self-motivation cultivated through training enhances individual and team performance, contributing to a more efficient and self-sufficient workforce.
Moreover, self-motivated employees often exhibit a proactive approach toward their roles, seeking continuous improvement and taking the initiative to contribute positively to the organization’s goals.
Benefits of Training and Development
employers when diligently and regularly implemented for their employees. A consistent employee training and development program can bring various benefits to an organization in several ways.
1. Enhanced Performance
When employees receive regular training, it not only enhances their job skills and knowledge but also boosts their confidence in applying their talents. As a result, their performance improves, enabling them to function with increased effectiveness and productivity in the workplace. This cycle of continuous learning fosters a skilled and motivated workforce that contributes to the overall success of the organization.
2. Standardized Processes
When employees in a workplace get training, it aids in the standardization of work processes. Thus, employees can adapt and apply the same practices at the workplace that they have learned during the training session. Additionally, standardized work processes foster a cohesive and efficient work environment, leading to improved collaboration and better overall outcomes for the organization.
3. Organizational Growth
A well-organized training system not only facilitates systematic and methodical learning for employees but also encourages a proactive and confident approach to acquiring new skills and knowledge, fostering a culture of continuous improvement within the organization.
4. Policy Awareness
A strong training program will always assist employees in becoming familiar with the values, ethics, policies, visions, and missions of their company. By aligning employees with the company’s values, ethics, policies, visions, and missions, a robust training program cultivates a sense of purpose and commitment among employees, leading to increased engagement and loyalty towards the organization.
5. Improved Client Satisfaction
When an organization’s employees get regular training, their job abilities enhance and they perform more professionally and effectively. Customers will notice the difference in service quality, which will positively impact their perception of the company.
In turn, improved customer satisfaction and positive word-of-mouth referrals can lead to increased customer loyalty and a stronger market position for the organization. As employees’ skills and expertise grow through regular training, the company gains a competitive edge, further driving its growth and success in the marketplace.
6. Adopting Advanced Technologies
With the rapid advancement of technology across all sectors, exposing employees to new practices in advanced technology would help an organization improve its efficiency and production. As a result, the organization becomes more adaptable to modern challenges, stays ahead of the competition, and fosters a culture of innovation, leading to long-term growth and sustainability.
7. Competitive Edge
Today’s corporate world is constantly changing thanks to technological advancements, industry trends, and innovation. To remain ahead of the competition, you must understand the crucial nature of employee training.
When you have effective employee development and training measures in place, your employees will be more equipped to adapt to change, providing your organization with a much-needed competitive edge.
8. Development of Future Leaders
Acquiring skilled leadership may begin with the new talent acquisition or with the selection of existing employees for a leadership role. By establishing leadership development programs, an organization may not have to look out for candidates outside the organization, as they may train the right talent to assume a leadership role.
9. Employee Retention
Employers have continual challenges in recruiting and retaining talent, yet one method to retain employees is to provide a professional development program. Development programs instill a sense of worth in employees, encourage loyalty, and eventually enhance employee retention. Owing to all these reasons, investing in your employees’ professional development is essential for employee retention.
10. Career Advancement
There are several benefits of a training and development program in a company. One of the most significant advantages of training employees is that certain employees can be trained to assume higher responsibilities. Fulfilling the responsibilities can lead to the promotion of the candidates.
This is a cost-effective approach since recruiting fresh people is costly. Additionally, existing employees are familiar with the organization’s processes and work culture, which makes them a perfect match for higher roles and responsibilities.
A. The Impact of Badge Programs on Promotion Rates:
Badge and certification programs are no longer just cosmetic — they’re reshaping internal mobility. According to a 2023 study by Acme Learning, organizations that implemented digital badge systems for training saw a 20% increase in internal promotions within 12 months.
Employees who earned 3+ skill badges were twice as likely to be considered for leadership tracks, especially in companies with transparent promotion criteria. Moreover, digital badging helped L&D teams track learning milestones and reward competency in real time.
Recommendation: Add digital badge pathways to leadership programs, technical certifications, and compliance modules to increase both visibility and motivation.
11. Better Employee Engagement
Regular development activities may help to keep employees engaged, while frequent training programs can ensure that employees ‘ abilities and practices are evaluated regularly. Managers may proactively build focused development programs that address any possible skill shortages by assessing a team’s existing skills and capabilities.
12. Accountability And Trust
Training programs may assist individuals who are advancing in their careers and taking on additional responsibilities within a company. They will be able to develop the necessary skills to succeed at their new jobs through these programs. For instance, they may get training in leadership skills or the usage of specialized software in their new post.
Emerging DEI & L&D Trends:
By 2026, 65% of high‑growth firms will embed DEI metrics into every training module, driving more inclusive leadership pipelines.
Unlocking Employee Potential with Engagedly LXP
Organizations across industries are embracing Engagedly LXP to elevate their training and development initiatives. As a leading Talent Management Platform, Engagedly has become the go-to solution for businesses seeking to enhance employee skills, foster professional growth, and drive organizational success. Below are some of the features that make Engagedly a powerful asset for employee development:
1. Personalized Learning Paths
Engagedly LXP offers a personalized approach to learning, allowing employees to follow tailored learning paths based on their roles, aspirations, and skill gaps. This personalized touch ensures that training is relevant, engaging, and directly applicable to individual career trajectories.
2. Create Rich Content Library
Engagedly LXP empowers companies to build a rich content library tailored to their unique needs. Organizations can curate and add a wide range of learning resources, from industry-specific courses to leadership development modules, ensuring employees have access to relevant and engaging materials.
This flexibility enables companies to provide personalized learning opportunities that align with both organizational goals and employee growth objectives.
Keeping tabs on employee progress is made seamless with Engagedly LXP’s robust tracking and analytics features. Organizations can monitor individual and collective progress, identify areas of strength and improvement, and make data-driven decisions to optimize training initiatives continually.
5. Adaptive Learning Paths
Engagedly LXP leverages adaptive learning technology, ensuring that training evolves with the employee’s progress. This feature tailors subsequent learning modules based on an individual’s proficiency, optimizing the learning journey for each employee.
6. Mobile Accessibility
Recognizing the need for flexibility, Engagedly LXP is designed with mobile accessibility in mind. Employees can engage in learning activities anytime, anywhere, ensuring that training is not confined to the office space and fits seamlessly into their schedules.
Recognizing the importance of employee training and development, organizations gain significant advantages from strategic investments in successful training and development programs. Simultaneously, employees experience meaningful benefits.
Employers reap the outcomes of having motivated, devoted, and engaged staff, while employees find value in being associated with an organization that prioritizes their growth and well-being. This symbiotic relationship not only fosters a productive work environment but also contributes positively to the company’s overall success.
Engagedly’s all-in-one human resource management software includes several modules, one of which is dedicated to employee training, learning, and development. The solution offers a host of functionalities so that you can plan, schedule, and execute training and development programs when required.
In any organization, a committed and highly motivated workforce is always challenging to maintain. It is the responsibility of major leaders and HR professionals to keep the workforce motivated and engaged; failing to do so would result in low productivity, high turnover rates, and dissatisfaction among your employees.
In this article, learn about efficient employee incentive programs and how you can avoid common mistakes in program implementation.
Top 10 Employee Incentive Programs
Incentives, or motivators, are factors that encourage motivation, growth, and productivity in your employees to achieve their set goals. These factors are important drivers for a consistent and committed team of performers. Here are the major employee incentive programs that you can implement for your workforce:
1. Performance-Based Bonuses
This system allows a tangible way to reward your employees for their continuous hard work and achievements. To make the bonus and reward system more interactive, you can offer a wide range of merchandise, gift cards, and even travel experiences to ensure your employees are valued and recognized for their work.
Performance-Based Bonus Structure Examples
Department
Bonus Criteria
Bonus Percentage/Amount
Example Calculation
Payment Frequency
Conditions
Sales Team
Achieve 110% of sales target
10% of total sales closed
$100,000 sales = $10,000 bonus
Quarterly
Must meet minimum quota to qualify
Marketing Team
Increase website traffic by 20%
$500 per milestone achieved
2 milestones = $1,000 bonus
Monthly
Based on Google Analytics report
Customer Support
Maintain 95% customer satisfaction
$200 for each month target met
3 successful months = $600 bonus
Monthly
Verified via CSAT scores
Development Team
Deliver project milestones on time
5% of project value
$50,000 project = $2,500 bonus
End of project
Project completion must meet quality standards
HR Team
Achieve 90% employee retention rate
$300 per quarter
4 successful quarters = $1,200 bonus
Quarterly
Based on employee retention reports
Operations Team
Reduce operational costs by 15%
8% of cost savings
$20,000 saved = $1,600 bonus
Bi-Annually
Requires detailed cost-reduction report
This type of employee incentive program can help build a positive work culture that encourages productivity, maintains performance quality, and reinforces employees’ sense of accomplishment.
2. Employee Recognition Programs
Humans tend to have an intense need for validation and acknowledgment of their work. You’re inculcating a sense of belonging when you provide employee recognition, formal awards, or even informal acknowledgments for their contributions. This leads to higher self-esteem and confidence in employees and more job retention.
Social recognition builds a strong sense of recognition in the work community and motivates everyone to perform well and enjoy being rewarded.
Employee Recognition Program Ideas
Program Name
Description
Reward Type
Frequency
Ideal for
Example Criteria
Employee of the Month
Recognize outstanding performance and contributions in a given month.
Certificate, gift card, or cash bonus
Monthly
High-performing employees
Exceeding KPIs, leadership, innovation
Peer-to-Peer Recognition
Encourage employees to nominate their peers for exceptional work.
Digital badges, shoutouts, or small prizes
Ongoing
Team collaboration
Supporting teammates, going the extra mile
Spot Bonus Awards
Instant rewards for exceptional work on projects or tasks.
Cash bonus, gift card, or vouchers
As needed
Exceptional achievements
Meeting tight deadlines, handling crises
Years of Service Awards
Celebrate employee loyalty and tenure milestones.
Personalized gifts, bonus, or vacation day
Annually
Long-term employees
1-year, 5-year, 10-year milestones
Innovation Award
Recognize creative ideas that improve processes or product innovation.
Cash prize, trophy, or public recognition
Quarterly or Annually
Innovators and idea contributors
Successful project implementation or new ideas
Team Achievement Award
Celebrate teams that exceed expectations or deliver outstanding results.
Team outing, dinner, or group reward
Quarterly or Project-based
Cross-functional teams
Successful project completion, teamwork
Wellness Champion Award
Recognize employees who promote health and well-being.
Fitness gear, wellness vouchers, or gym memberships
Quarterly
Health-conscious employees
Organizing wellness events or promoting mental well-being
Customer Hero Award
Recognize employees who deliver exceptional customer service.
Certificate, cash bonus, or experience voucher
Monthly or Quarterly
Customer-facing roles
Outstanding customer feedback or testimonials
Rising Star Award
Recognize new employees showing exceptional promise and dedication.
Certificate, mentorship opportunity, or development fund
Quarterly
New employees (< 1 year)
Strong performance, leadership potential
Volunteer Award
Celebrate employees actively participating in social causes or volunteering.
Donation to charity of choice or recognition plaque
Annually
Community-driven employees
Hours contributed to social causes
For example, Engagedly offers features where team members can give real-time praise and awards for exceptional employee performance. These immediate feedback and rewards make sure everyone’s more engaged at work.
3. Professional Development Opportunities
Investing in your employees’ professional growth, such as training, certification, and career advancement, shows your company’s deep commitment to workforce development and growth.
This also helps employees upskill and share knowledge, which encourages more promotions and ultimately benefits the whole organization’s growth. You can invest in customized L&D programs and mentoring sessions that can add to the professional development courses for your employees.
Professional Development Opportunities for Employees
Opportunity
Description
Ideal For
Key Benefits
Examples/Platforms
Online Courses & Certifications
Access to industry-relevant courses for skill development.
All employees, especially tech, marketing, and HR teams.
Flexible learning, skill enhancement.
Coursera, Udemy, LinkedIn Learning
Workshops & Seminars
Interactive training sessions focused on specific skills or industry trends.
Employees seeking hands-on experience.
Practical insights, networking opportunities.
Local workshops, industry events
Mentorship Programs
Pairing employees with experienced mentors for guidance.
New hires, emerging leaders.
Knowledge transfer, career guidance.
Internal mentorship programs
Leadership Development Programs
Specialized training to groom future leaders.
Mid-level managers, team leads.
Enhances leadership, decision-making skills.
Dale Carnegie, FranklinCovey
Job Rotation Programs
Employees switch roles or departments to expand skill sets.
Employees seeking cross-functional experience.
Broadens skills, fosters innovation.
Internal job rotation frameworks
Conferences & Networking Events
Events focused on industry knowledge sharing and professional connections.
Senior leaders, specialists, and emerging professionals.
Exposure to trends, partnership building.
SHRM, Gartner, SXSW
Internal Knowledge Sharing Sessions
Employees present key insights or skills to their peers.
All employees, especially team leads.
Enhances collaboration, builds expertise.
Monthly internal sessions
Book Clubs & Learning Circles
Employees read and discuss industry-relevant books.
Employees seeking self-paced learning.
Encourages thought leadership, team bonding.
Monthly book club meetings
Skill-Based Volunteering
Employees contribute their expertise to social causes.
Employees seeking meaningful engagement.
Enhances leadership, builds empathy.
Nonprofit collaborations
Tuition Reimbursement Programs
Financial support for employees pursuing advanced education.
Employees pursuing higher education or certifications.
Encourages continuous learning.
Company-supported MBA programs
Hackathons & Innovation Labs
Creative events where employees brainstorm and develop solutions.
Tech teams, product developers.
Boosts creativity, fosters teamwork.
Internal hackathons or innovation weeks
Soft Skills Training
Workshops to improve communication, emotional intelligence, and teamwork.
All employees, especially leaders.
Enhances workplace relationships.
Crucial Conversations, Dale Carnegie
AI & Automation Training
Upskilling employees in AI-driven tools and platforms.
Tech teams, HR professionals, managers.
Future-proofs skills for digital transformation.
Microsoft AI, Google AI certifications
Public Speaking & Presentation Training
Focuses on improving presentation skills and confidence.
Managers, sales teams, and aspiring speakers.
Enhances communication and influence.
Toastmasters, TEDx coaching
For example, Google provides a massive database of online courses and workshops and hosts conferences. This exposure to new skills helps in career development and job satisfaction.
4. Flexible Work Arrangements
Offering your workforce flexible work arrangements like remote work options, flexible work hours, or compressed workweeks can lead to higher productivity and increased job satisfaction.
Salesforce offers its employees the option to work remotely and create flexible schedules that suit their needs. This approach has led to higher job satisfaction and lower turnover rates.
5. Health and Wellness Programs
Promoting a healthier work-life balance and influencing lifestyle choices and fitness solutions is crucial to preventing your employees from dissatisfaction, a possible mental health issue, or burnout.
These programs offer employee incentives like healthy lunches, standing desks, fitness centers, and free mental health support services. Simple daily activities like quitting smoking programs or daily steps challenges can also ensure increased performance.
For example, Microsoft provides its employees with on-site fitness centers, menopause and maternity benefits, wellness programs, and mental health resources.
6. Paid Time Off (PTO) and Vacation Incentives
Providing paid time off and vacation incentives can help increase employee morale and avoid frequent burnout. Giving your employees time off regularly can help them recharge and come back with increased productivity and job satisfaction.
Program Type
Description
Eligibility
Key Benefits
Example Incentives
Standard PTO
Regular paid leave for vacation, sick days, or personal time.
All full-time employees.
Encourages work-life balance, reduces burnout.
Accrual system (e.g., 1.5 days per month) or annual lump sum.
Unlimited PTO
Employees can take time off as needed without a fixed limit.
Typically offered in tech and creative industries.
Builds trust, promotes flexibility.
Encourages ownership and accountability.
Vacation Bonus Incentives
Monetary bonuses or rewards for employees who take a full vacation.
Employees who use their earned PTO.
Encourages employees to unplug and recharge.
$500 vacation stipend or paid experiences.
PTO Buyback Programs
Employees can exchange unused PTO for cash.
Employees with unused PTO at year-end.
Provides financial flexibility.
Employees sell back up to 5 unused PTO days.
Sabbatical Leave
Extended paid/unpaid leave for long-term employees.
Employees with 5+ years of tenure.
Encourages rejuvenation and new skills.
1-3 months of paid leave.
Floating Holidays
Additional PTO days that employees can use for cultural, religious, or personal holidays.
All employees.
Promotes inclusivity and flexibility.
2-3 floating holidays per year.
Mental Health Days
Dedicated paid days off to support mental well-being.
All employees.
Reduces stress, improves focus and performance.
1-2 extra mental health days per quarter.
Volunteer PTO (VTO)
Paid time off for volunteering activities.
Employees interested in social impact.
Encourages community involvement.
1-2 paid VTO days annually.
Milestone PTO Rewards
Extra PTO awarded for tenure milestones.
Long-term employees.
Recognizes loyalty and dedication.
3 extra PTO days after 3 years; 5 extra days after 5 years.
‘Disconnect and Recharge’ Incentive
Extra PTO days for employees who achieve set performance milestones.
High-performing employees.
Encourages productivity and celebrates achievements.
Extra Friday off after exceeding sales targets.
For example, Netflix offers unlimited PTO to its employees as long as they can manage the assigned work on time. This policy lets employees take a breather, promotes a healthy work-life balance, and also displays trust in employees’ judgment. Google’s PTO incentives also allow employees the breather they need to spend time off work.
7. Referral Programs
Referral programs reward employees for referring qualified candidates who are hired by the company. This approach leverages employees’ networks and incentivizes them to help build a strong team.
Program Type
Description
Eligibility
Incentives/Rewards
Bonus Payment Timing
Key Conditions
Standard Referral Bonus
Employees refer candidates for open roles.
All employees excluding hiring managers.
$500 – $2,000 per successful hire.
Paid after 3-6 months of successful employment.
Candidate must meet job requirements.
Tiered Bonus System
Higher bonuses for harder-to-fill or senior roles.
All employees.
$1,000 for junior roles, $2,500 for senior roles.
Paid in stages (e.g., half at hire, half after 6 months).
Role-specific bonus criteria apply.
Fast-Track Bonus
Reward employees for referrals that lead to immediate hires.
All employees.
Additional $500 for referrals hired within 30 days.
Paid after the candidate’s first month.
Candidate must meet job requirements.
Diversity Referral Program
Incentivize referrals from underrepresented groups to promote diversity.
All employees.
Bonus + additional recognition for diversity referrals.
Paid after 3-6 months of successful employment.
Candidate must be from an underrepresented group.
Alumni Referral Program
Former employees refer potential candidates.
Former employees.
Cash bonus, gift cards, or charity donation.
Paid after the candidate’s probation period.
Alumni must maintain a positive departure record.
Referral Raffle Program
Every successful referral earns employees a raffle entry for grand prizes.
All employees.
Prizes such as vacations, tech gadgets, or vouchers.
Drawings held quarterly or annually.
More referrals = more entries.
Dropbox offers cash bonuses to employees who refer new hires. This program helps the company find top talent and encourages a sense of involvement and investment in the company’s success.
8. Team-Building Activities and Events
Organizing team-building activities and programs can strengthen employee relationships, create a positive space for competition, and improve morale. These activities can comprise team outings and retreats to workshops and social events, encouraging employees to connect and participate outside of the office work environment.
For example, Engagedly organizes interactive team-building solutions such as outdoor adventures, team lunches, community services, and volunteer activities. These activities help employees find creative solutions in stressful situations and develop critical thinking and problem-solving skills.
9. Performance Reviews and Career Advancement
Conducting regular performance reviews and guiding your employees toward clear career pathways helps build a strong employee incentive program. By ensuring your employees excel in the future, your programs offer professional growth, networking, and a supportive workplace environment.
Aspect
Description
Best Practices
Performance Reviews
Assess achievements, skills, and growth areas.
Use clear criteria, focus on feedback and goals.
Goal Setting
Align employee goals with company objectives.
Follow SMART goals or OKR frameworks.
Continuous Feedback
Ongoing check-ins for timely guidance.
Use 1:1s and real-time feedback tools.
Skills Development
Focus on training, mentorship, and learning.
Provide access to courses and mentorship.
Career Path Planning
Outline clear steps for growth and promotions.
Define skills, milestones, and timelines.
Promotion Criteria
Set transparent benchmarks for advancement.
Use performance metrics and skill assessments.
Recognition Programs
Reward top performers to boost motivation.
Use spot bonuses, awards, and public praise.
Improvement Plans
Structured support for underperformers.
Outline clear steps, timelines, and outcomes.
Stretch Assignments
Assign challenging projects for growth.
Offer leadership roles or cross-team tasks.
For example, many platforms provide effective tools for creating individual development plans (IDPs) and tracking progress. Employees can set and track their goals, aligning their personal aspirations with the organization’s objectives. This continuous feedback loop helps employees stay on track and make necessary adjustments to achieve their targets.
10. Travel Incentives
Offering your employees travel incentives works brilliantly as a way to acknowledge their work and perseverance. Around 81% of corporations quote that providing travel incentives is a major reason for employee retention in 2024. For example, providing travel reliefs such as fully paid vacations, travel vouchers, and weekend getaways helps your team relax and drain out their stress levels.
For example, your company rewards your top sales-performing team with surprise trip to a prime destination. This incentive leaves a strong positive impression on your employees and encourages all teams to work consistently to enjoy travel benefits.
Using various incentives to encourage your workforce helps reduce employee burnout and mental exhaustion. However, you must be careful in selecting the type of incentives, as not all options would work for your company. Some of the common mistakes are:
Launching Incentives Without a Plan or Inputs
Before deciding on what type of incentives suit your employees, you need to understand whether you offer aligns with what your employees actually need. When you know what your employees wish for, you can set clear goals and objectives for your employee incentive program. This way, the initiative will align with both your employees’ long-term growth and the company’s overall beliefs.
All-in-one Approach
You cannot use the same approach for a diverse set of employees with different growth perspectives. In order to make sure you get every employee to participate in such incentives, provide a range of incentives that cater to everyone’s motivational needs. For example, some employees might receive monetary-based bonuses, while others prefer professional development programs.
Inconsistent Incentives
When you implement incentives, make sure you’re communicating clearly about the program’s goals, rewards, and the entire process. Once the program ends, make sure everyone’s benefited from it, and the rewards are delivered on time.
Conclusion
By investing well in a strong employee incentive program, you’re building a deeply committed and motivated workforce. Addressing and understanding diverse employee needs helps you prepare a suitable incentive program, imperative to employee satisfaction and loyalty.
Remember, you must prepare a trustworthy and consistent employee incentive program to keep your workforce dynamic, motivated, and competent for changing market needs.
When you prioritize your workforce’s well-being and growth, you ensure a safe and productive environment, consistently working towards the organization’s goals.
FAQs
What is an employee incentive program?
An employee incentive program is a structured plan that is designed to motivate and reward employees for their performance and contributions. It includes various incentives such as bonuses, recognition, and professional development opportunities.
How can an employee incentive program improve retention?
A well-balanced employee incentive program can improve retention by improving job satisfaction and overall morale, and working towards employees’ growth and well-being. Employees prefer to stay with a company that values and rewards their contributions.
What are some common types of employee incentive programs?
Employee incentive programs include performance-based bonuses, recognition programs, professional development opportunities, flexible work arrangements, health and wellness programs, and employee stock ownership plans (ESOPs).
How can I measure the success of an employee incentive program?
You can measure the success of an employee incentive program by tracking major metrics such as employee engagement, retention rates, productivity levels, and overall job satisfaction. Regular feedback from employees can also provide valuable insights.
Why is offering professional development opportunities as part of an employee incentive program important?
Offering professional development opportunities is important because it shows employees that you are invested in their growth and career progression. This personal commitment can lead to increased loyalty, motivation, and retention.
Managers are the backbone of any successful company. They are the ones who are responsible for team leadership and overall strategy. In such cases, when they hold so many responsibilities and are so important to the organization, performance reviews for managers become necessary.
If you feel you are having difficulty finding the right words, then you are not alone. It happens to many leaders and HR professionals. Almost 60% of workers believe their managers are not ready to provide constructive feedback during their performance reviews. That is why we are suggesting 50 simple and effective performance review examples to help you out.
The performance reviews offer a chance to check, understand, and make changes for future success. If it is done right, these reviews can be one of the most powerful tools for your organization.
The key to making them truly meaningful lies in how they are approached. The performance reviews should be done in such a way that managers feel motivated to improve their skills and boost their leadership.
Examples of Positive Performance Review Phrases for Managers
“You are doing an amazing job. You are inspiring and motivating the team. You are setting a high standard for others through your actions.”
“You lead with integrity and accountability, which really builds trust among us all.”
“Your leadership creates a work environment where collaboration flourishes, and everyone feels valued.”
2. Communication
“You communicate clearly and concisely. You keep the team on track and well-informed.”
“You listen attentively to everyone and make sure everyone feels heard and important.”
“You keep us updated on important changes, which keeps things transparent.”
3. Decision-Making
“You make well-thought-out, data-driven decisions that always benefit the team.”
“You stay calm under pressure, considering all options before deciding on the best course of action.”
“Your ability to assess risks and rewards has helped us navigate challenges effectively.”
4. Delegation
“You assign tasks based on each person’s strengths. This makes our workflow more efficient.”
“You trust the team to take ownership while providing support when needed.”
“Your clear instructions and deadlines ensure things are completed on time and with high quality.”
5. Goal Setting and Achievement
“You set realistic, achievable goals that push the team to reach new heights.”
“Your ability to align our goals with the company’s bigger vision keeps us on track.”
“You encourage personal goal-setting. This helps everyone grow professionally.”
6. Conflict Resolution
“You handle conflicts fairly and with ease. You maintain balance and resolve issues effectively.”
“Your ability to reconcile and find common ground strengthens our relationships.”
“You promote open communication, and with that, you have prevented many misunderstandings from escalating.”
7. Employee Development
“You genuinely care about our growth. It shows when you offer mentorship and help whenever needed.”
“You find training opportunities that help us build new skills and boost confidence.”
“You celebrate achievements, which motivates us to keep performing at our best.”
8. Adaptability
“You are easygoing and quick to adapt to any changes. You are open to new challenges and look at them as opportunities.”
“Your stability inspires the team to stay focused, even when things get tough.”
“You have created an environment where change is welcomed, helping everyone stay agile and motivated.”
9. Time Management
“You manage and organize time effectively. You make sure that deadlines are met always without any delay.”
“Your ability to balance urgent needs with long-term goals is appreciable. You make sure not to compromise with any of it and balance both in time.”
“You boost productivity by eliminating the things that are distracting and a waste of time and prioritizing the things that are important.”
10. Innovation and Initiative
“You cultivate a creative environment where the team feels encouraged to think outside the box.”
“You are proactive in identifying areas for improvement. This quality is driving positive changes.”
“Your innovative ideas have a lasting impact on the company’s growth and success.”
11. Strategic Thinking
“You have a talent for developing strategies that align with our goals.”
“Your ability to foresee challenges keeps us ahead of the game.”
“You ensure that our day-to-day actions contribute to long-term success.”
12. Team Building
“You create a collaborative, supportive environment where everyone feels appreciated.”
“You focus on building trust, which strengthens team dynamics.”
“You are excellent at recognizing strengths and improving areas that need attention.”
13. Emotional Intelligence
“You approach situations with compassion. This way, you nurture a positive workplace culture.”
“You stay calm under pressure, which sets an example for the rest of employees.”
“You are skilled at recognizing and managing emotions, and you maintain smooth communication.”
14. Employee Engagement
“You acknowledge employees’ contributions to the team. You never miss a chance to motivate them. You enjoy celebrating even small wins.”
“You involve everyone in decision-making. You make sure everyone feels valued and heard.”
“You help employees to share their opinions and increase their involvement. This has built trust and confidence among employees.”
15. Problem-Solving
“You approach problems methodically and involve the team in finding solutions.”
“You resolve issues quickly, preventing small challenges from becoming bigger obstacles.”
“You encourage creative problem-solving, leading to innovative solutions.”
Your problem-solving skills help the team tackle challenges with confidence.
16. Collaboration
“You work well with other teams. Your coordination skills are impressive.”
“You encourage collaboration among team members, which strengthens the teamwork.”
“Your conflict resolution skills ensure that teamwork remains productive and respectful.”
17. Performance Management
“You provide clear expectations and actionable feedback to help everyone succeed.”
“You track progress consistently and offer constructive feedback for improvement.”
“You celebrate achievements while guiding us toward further growth.”
18. Feedback Delivery
“You provide feedback in a productive and empowering way.”
“You balance a positive outlook with areas for improvement, which helps the team to grow.”
“You promote open feedback. This has created trust within the team.”
19. Resource Management
“You make sure the team has everything needed to succeed.”
“Your budgeting skills help the team avoid unnecessary costs while maximizing productivity.”
“You consistently find ways to make the most of available resources.”
20. Vision and Goal Alignment
“You communicate the company’s vision. You inspire the team to work toward common goals.”
“Your strategic planning ensures team activities align with company objectives.”
“You consistently track progress, keeping the team focused on the goals.”
21. Diversity and Inclusion
“You create an inclusive environment where everyone feels respected and valued.”
“You celebrate diverse perspectives, which strengthens creativity and problem-solving.”
“You provide equal opportunities for growth and success, regardless of background.”
22. Risk Management
“You identify potential risks early and develop strategies to address them.”
“Your ability to make calculated decisions helps minimize unnecessary risks.”
“You encourage the team to address potential risks early before they become issues.”
23. Innovation Encouragement
“You create an environment where employees feel safe to share new ideas.”
“You support experimenting with new things. This has shown improvement in team performance.”
“You celebrate creativity, motivating the team to continue pushing boundaries.”
24. Client/Stakeholder Relations
“You have built strong relationships with stakeholders, gaining their trust and satisfaction.”
“Your professionalism has strengthened client relationships.”
“You go the extra mile to understand and meet stakeholder needs.”
25. Crisis Management
“You stay calm and decisive during crises. This helps the team to trust you in difficult times.”
“Your ability to implement sudden plans has minimized the impact of challenges.”
“Your communication during high-pressure situations provides clarity to the team.”
26. Empowerment
“You consistently empower team members by trusting them with responsibilities and providing guidance when needed.”
“You recognize team strengths and delegate tasks that allow individuals to shine.”
“Your encouragement enables employees to confidently take ownership of projects.”
27. Coaching Skills
“You mentor employees effectively, helping them build new skills and develop professionally.”
“Your guidance during challenging situations has improved team problem-solving.”
“You consistently provide constructive feedback that encourages growth.”
28. Accountability
“You set clear expectations for the team and hold everyone accountable, which boosts productivity.”
“Your emphasis on accountability ensures deadlines are met and objectives are achieved.”
“You encourage a culture of responsibility, promoting ownership of tasks and results.”
29. Trust Building
“You foster trust by demonstrating honesty and transparency in all interactions.”
“Your consistency in following through on promises has strengthened team confidence.”
“You actively encourage open dialogue, which has built a strong sense of trust.”
30. Mentorship
“You actively mentor employees, guiding them through their challenges and helping them achieve success.”
“Your mentorship has had a positive impact on employee confidence and development.”
“You take the time to understand individual goals, providing personalized guidance.”
31. Creativity
“You constantly inspire creativity, leading to innovative ideas that improve team performance.”
“Your open-minded approach has encouraged the team to explore new solutions.”
“You create a safe space for creative brainstorming, which has sparked innovative results.”
32. Embracing Change
“You effectively guide the team through organizational changes, ensuring minimal disruption.”
“Your adaptability helps the team remain flexible and optimistic during transitions.”
“You consistently promote change as an opportunity for growth.”
33. Proactive Thinking
“You anticipate potential challenges and address them before they escalate.”
“Your forward-thinking mindset has allowed the team to stay ahead of market trends.”
“You develop strategies that prepare the team for upcoming challenges.”
34. Employee Well-Being
“You prioritize employee well-being by encouraging a healthy work-life balance.”
“Your efforts to create a positive environment have improved overall morale.”
“You recognize when employees are overwhelmed and actively offer support.”
35. Customer Focus
“You always prioritize customer needs, ensuring a positive experience for clients.”
“Your proactive approach has resulted in stronger customer relationships.”
“You train the team to deliver exceptional customer service.”
36. Active Listening
“You actively listen to employees, making sure they feel heard and valued.”
“Your ability to empathize with team members creates a supportive environment.”
“You consistently address team concerns thoughtfully and effectively.”
37. Emotional Support
“You provide emotional support during difficult situations, showing genuine care.”
“Your compassion makes employees feel safe, valued, and motivated.”
“You handle emotional concerns with understanding, promoting a positive atmosphere.”
38. Crisis Preparedness
“You proactively prepare for potential crises, minimizing disruptions to operations.”
“Your calm demeanor during high-pressure situations instills confidence in the team.”
“You ensure everyone understands their roles in handling unexpected issues.”
39. Flexibility
“You easily adapt to changing priorities, ensuring minimal delays in progress.”
“Your willingness to adjust strategies keeps the team aligned with evolving goals.”
“You maintain composure in uncertain situations, keeping the team motivated.”
40. Transparency
“You promote transparency by openly sharing relevant information with the team.”
“Your honest communication ensures everyone stays informed and aligned.”
“You create an open environment where employees feel safe to express concerns.”
41. Data-Driven Decision Making
“You use data to guide decisions, ensuring each action is based on facts.”
“Your ability to analyze trends has improved project outcomes significantly.”
“You actively review performance data to make informed choices.”
42. Continuous Learning
“You encourage a learning mindset by promoting skill development opportunities.”
“Your dedication to self-improvement motivates the team to grow.”
“You actively seek new knowledge and share insights with the team.”
43. Conflict Prevention
“You proactively address issues before they escalate, preventing potential conflicts.”
“Your ability to read team dynamics ensures misunderstandings are quickly resolved.”
“You foster open communication, reducing the risk of workplace disputes.”
44. Encouraging Ownership
“You inspire employees to take ownership of their roles and deliver results.”
“Your trust in team members motivates them to exceed expectations.”
“You balance guidance with independence, empowering employees to thrive.”
45. Ethical Leadership
“You consistently lead with integrity, setting a strong ethical example.”
“Your emphasis on fairness ensures all employees feel valued and respected.”
“You uphold the organization’s values, promoting trust and accountability.”
46. Process Improvement
“You continuously review processes to identify areas for improvement.”
“Your ideas for streamlining workflows have improved overall efficiency.”
“You challenge outdated processes and implement better solutions.”
47. Workload Management
“You effectively manage team workloads, ensuring no one feels overwhelmed.”
“Your ability to redistribute tasks when priorities shift ensures balance.”
“You support employees in setting priorities, improving productivity.”
48. Networking Skills
“You build strong relationships with internal and external partners.”
“Your networking skills have opened new opportunities for the team.”
“You connect employees with key stakeholders, strengthening collaboration.”
49. Celebrating Success
“You take time to recognize and celebrate team achievements.”
“Your enthusiasm for celebrating milestones boosts morale and engagement.”
“You create a culture that values hard work and dedication.”
50. Empowering Feedback
“You consistently provide feedback that empowers employees to improve.”
“Your constructive advice helps individuals refine their skills.”
“You create a supportive environment where employees feel safe to ask for guidance.”
With these positive performance review phrases, you can encourage your team’s achievements and motivate them for continued growth and excellence.
How to Deliver Feedback Effectively
Making performance reviews should be meaningful. It should create a helpful and positive conversation that benefits the manager and the team. Nearly 50% of managers fail to see the value in their company’s performance management process. Here are some key ways to make sure reviews are impactful:
1. Focus on Constructive Feedback
Give feedback that helps managers grow. Offer clear suggestions and show support, highlighting strengths and improvement areas.
✅ Example (Positive Feedback):
“Your leadership has positively influenced the team’s collaboration, and I’ve seen remarkable improvements in team communication. To build on this, consider hosting bi-weekly team check-ins to encourage quieter team members to share their thoughts.”
✅ Example (Improvement Feedback):
“Your project planning skills are strong, but some deadlines have been missed recently. Implementing a task prioritization system may help ensure critical deadlines are consistently met.”
2. Personalize the Conversation
Tailor the review of each manager’s style, challenges, and goals. Understand their unique needs to make the review more relevant and respectful.
✅ Example (Positive Feedback):
“I know you prefer empowering your team by giving them ownership of tasks. Your approach has improved engagement, and I recommend continuing to build on that by offering mentorship to less experienced employees.”
✅ Example (Improvement Feedback):
“Since you manage a remote team, I’d suggest enhancing communication by introducing weekly video check-ins to maintain stronger team connections.”
3. Encourage Two-Way Communication
Make the review a two-way conversation. Let managers share their thoughts and reflect on their own performance for a more open and meaningful dialogue.
✅ Example (Opening Question):
“Before I share my thoughts, I’d love to hear how you feel about your recent performance. What are some achievements you’re proud of?”
✅ Example (Encouraging Reflection):
“I noticed you handled client concerns effectively last month. How do you feel about your overall approach to client relationship management?”
4. Set Clear and Achievable Goals
Set specific, measurable, and realistic targets that help the manager grow and align with business goals. This gives them a clear direction.
✅ Example (Goal for Leadership Skills):
“Over the next quarter, focus on empowering team members by assigning ownership of key initiatives to foster accountability.”
✅ Example (Goal for Communication Skills):
“I’d suggest scheduling monthly feedback sessions with your team to ensure everyone feels heard and aligned with goals.”
5. Provide Regular Feedback
Do not wait for the annual review. Offer feedback throughout the year to track progress and address issues early. According to research, around 81% believe they should receive feedback from their manager at least once every quarter through regular check-in meetings.
✅ Example (Ongoing Feedback):
“Your recent efforts to encourage collaboration have been impactful. Let’s continue with bi-weekly check-ins to assess how this approach is improving teamwork.”
✅ Example (Mid-Year Feedback):
“I’ve noticed great progress in your delegation skills since our last review. Continue this momentum by empowering employees to lead team meetings occasionally.”
6. Make the Review Collaborative
Involve the manager in the process. Ask them to assess their own performance, helping them see where they are doing well and where they need support.
✅ Example (Collaborative Feedback):
“I’d love to hear your thoughts on the progress you’ve made this quarter. What would you say has been your biggest achievement?”
✅ Example (Encouraging Self-Assessment):
“How do you feel your leadership style has evolved over the past six months? Are there areas where you’d like additional support?”
7. Be Honest and Transparent
If improvement is needed, be honest but supportive. Address concerns directly and offer help for improvement.
✅ Example (Supportive Feedback):
“I’ve noticed some communication gaps with stakeholders. Let’s explore strategies to improve this together, such as introducing a more structured reporting process.”
✅ Example (Direct but Empathetic Feedback):
“I believe you have strong decision-making skills, but taking additional time to assess risks may help avoid rushed decisions. I’d be happy to connect you with resources to strengthen this area.”
8. Follow-Up and Offer Support
After the review, keep checking in on the manager’s progress and offer help as needed. Show that you care about their growth.
✅ Example (Follow-Up Feedback):
“We discussed improving your delegation skills last quarter. I’ve seen some progress, and I’d be happy to connect you with leadership training to build on this further.”
✅ Example (Continuous Support):
“I noticed you’ve started holding monthly team meetings — great initiative! If you’d like additional resources on effective meeting structures, let me know.”
9. Focus on Future Growth
While past performance is important, focus more on how the manager can improve in the future. This helps motivate them for what’s ahead.
✅ Example (Growth-Oriented Feedback):
“Your leadership has grown significantly over the past year. In the coming months, I encourage you to focus on developing your strategic planning skills by taking the lead on larger cross-department projects.”
✅ Example (Vision for Growth):
“I see strong potential for you to move into a senior leadership role. Let’s create a growth plan together to prepare you for that transition.”
10. Provide Resources for Improvement
Offer tools, training, or mentorship to help the manager improve in areas discussed during the review.
✅ Example (Training Support):
“Since you’ve expressed interest in improving your conflict resolution skills, I recommend attending our upcoming leadership workshop — I believe it will provide practical strategies to support you.”
✅ Example (Mentorship Opportunity):
“I’d love to connect you with [Name], who has successfully improved team engagement. They may have helpful insights for you.”
In short, meaningful reviews focus on growth, open communication, and supporting managers. Done right, they help boost performance and morale and contribute to the success of both the manager and the organization.
Effective Manager Performance Review Template
Employee Information
Field
Details
Employee Name
___________________________
Position/Title
___________________________
Department
___________________________
Review Period
___________________________
Reviewer Name
___________________________
Date
___________________________
I. Overall Performance Summary
(Provide a brief overview of the manager’s performance throughout the review period.)
Example: “Throughout the review period, [Manager Name] demonstrated exceptional leadership by driving team success through clear communication, strategic decision-making, and effective delegation. Their commitment to employee development and focus on results have positively impacted the team’s performance.”
II. Key Performance Areas
(Rate and provide detailed feedback for each performance category.)
Performance Area
Rating
Positive Example
Improvement Opportunity
Leadership Skills
[Excellent / Good / Needs Improvement / Unsatisfactory]
“You inspire and motivate the team to achieve their best.”
“Consider involving quieter team members more actively in discussions.”
Communication Skills
[Excellent / Good / Needs Improvement / Unsatisfactory]
“You articulate expectations clearly, ensuring team alignment.”
“Improving responsiveness to urgent concerns could further boost confidence.”
Decision-Making
[Excellent / Good / Needs Improvement / Unsatisfactory]
“Your data-driven decision-making leads to effective outcomes.”
“Involving more team members in brainstorming may enhance results.”
Delegation
[Excellent / Good / Needs Improvement / Unsatisfactory]
“You assign tasks based on employee strengths, improving efficiency.”
“Consider empowering junior employees with more responsibility.”
Employee Development
[Excellent / Good / Needs Improvement / Unsatisfactory]
“Your mentorship has helped employees build new skills.”
“Introducing a structured mentorship program could improve growth.”
Time Management
[Excellent / Good / Needs Improvement / Unsatisfactory]
“You manage priorities effectively, ensuring deadlines are consistently met.”
“Implementing time-blocking strategies may further improve efficiency.”
Innovation and Initiative
[Excellent / Good / Needs Improvement / Unsatisfactory]
“Your proactive approach has resulted in impactful process improvements.”
“Encouraging the team to experiment with new ideas may enhance creativity.”
Conflict Resolution
[Excellent / Good / Needs Improvement / Unsatisfactory]
“You mediate conflicts calmly and promote fair resolutions.”
“Conducting regular check-ins could help identify potential issues early.”
Employee Engagement
[Excellent / Good / Needs Improvement / Unsatisfactory]
“Creating more team-building opportunities may enhance cohesion.”
Strategic Thinking
[Excellent / Good / Needs Improvement / Unsatisfactory]
“Your strategic plans have improved team efficiency and growth.”
“Encouraging the team to participate in strategic discussions may improve engagement.”
III. Notable Achievements
(Highlight key accomplishments that demonstrate exceptional performance.)
Achievement
Details
Achievement 1
Successfully launched a new project that increased client retention by 20%.
Achievement 2
Implemented a new performance feedback system that improved employee engagement.
Achievement 3
Streamlined the onboarding process, reducing employee ramp-up time by 25%.
IV. Areas for Improvement
(Identify specific areas for growth along with actionable suggestions.)
Improvement Area
Suggested Action
Delegation
Empower junior employees with more project ownership.
Communication
Introduce regular feedback sessions to improve engagement.
Innovation
Implement monthly brainstorming sessions to encourage creativity.
V. Development Plan and Goals
(Outline professional growth opportunities, skill-building goals, and career objectives.)
Goal
Action Steps
Timeline
Goal 1: Improve Delegation Skills
Assign at least one new responsibility to each junior team member.
Within 2 months
Goal 2: Strengthen Feedback Process
Introduce bi-weekly feedback sessions for direct reports.
Ongoing
Goal 3: Boost Innovation
Host monthly innovation workshops to inspire new ideas.
Within 3 months
VI. Final Comments and Sign-Off
Comments Section
Details
Manager’s Comments
______________________________________________
Employee’s Comments (Optional)
______________________________________________
Reviewer’s Signature
________________________
Employee’s Signature
________________________
VII. Rating Key (Optional)
Rating
Description
⭐️ Excellent
Consistently exceeds expectations.
👍 Good
Meets expectations with occasional excellence.
➖ Needs Improvement
Meets some expectations but requires development.
❗️ Unsatisfactory
Performance falls below expectations.
Tips for Conducting an Effective Manager Performance Review
Be Specific: Use clear examples to highlight strengths and areas for improvement.
Encourage Dialogue: Allow managers to provide their input and self-reflection.
Balance Positives with Growth Areas: Acknowledge accomplishments while suggesting actionable improvements.
Set Clear Goals: Outline measurable objectives to support continued growth.
By following this structured template, you can deliver performance reviews that are insightful, productive, and inspire managers to excel in their roles.
Conclusion
Manager performance reviews are a great opportunity for you to support your team, appreciate what they are doing well, and help them grow by telling them where they need to improve. There are 50 manager performance review examples shared here that can help you give feedback. These phrases are both clear and positive.
For example, instead of just saying, “You did well,” you can say, “You always meet deadlines and keep the team on track.”
With these examples, you are doing both: sharing feedback and helping your team grow and feel appreciated. If you want to make performance reviews easier and more effective, Engagedly can help. Our platform facilitates the process, simplifies setting goals, and encourages ongoing feedback. Want to know more? Request a free demo.
FAQs
1. Why are manager performance reviews so important?
Manager performance reviews are important because they help managers grow, improve team dynamics, and keep everyone aligned with the organization’s goals.
2. How often should manager performance reviews be done?
You should do reviews at least once a year, but it will be much better if you do quarterly or biannually to keep feedback fresh and actionable.
3. What is the biggest mistake in manager performance reviews?
One of the common mistakes people make while reviewing is being vague or overly critical. Balance is key. You should highlight strengths and provide clear and constructive feedback.
4. How do you make manager performance reviews more meaningful?
You can make reviews meaningful by having it like a two-way conversation, celebrating wins, and focusing on actionable growth steps.
5. Can tools help with manager performance reviews?
Absolutely! Platforms like Engagedly make reviews smoother, fairer, and more impactful.
Cutting down on hours of administrative tasks, easily managing compliance, and releasing data-driven insights, all from a single system, would’ve sounded like a dream before the advent of Human Resources Information Systems (HRIS).
HRIS systems provide solutions that go beyond conventional human resource management when keeping talent and promoting organizational development are top priorities. From payroll and recruiting automation to real-time analytics and enabling remote teams, HR solutions are transforming how businesses handle their most precious asset—their people.
This guide explores the 10 types of HRIS systems every HR manager should consider for 2025.
Understanding HRIS Systems
An HRIS is a program designed to manage and automate HR tasks. Acting as centralized hubs, these systems provide effective personnel information collection, tracking, and management. The integration of several HR systems helps HRIS systems decrease errors, cut manual data entry, and offer insightful analytics.
Apart from simplifying daily administrative chores, HRIS systems function as useful data sources, providing actionable insights. Real-time analytics helps companies to spot workforce trends, track employee performance, and improve recruiting plans.
Predictive analytics in an HR system, for instance, might enable preemptive interventions by helping to estimate hiring needs or by pointing out employees at risk of leaving. Moreover, the capacity to comply with local and international labor laws guarantees that companies stay ahead of possible legal problems.
At a cumulative annual growth rate (CAGR) of 7.5%, the worldwide HR technology market is expected to rise from $23.98 billion in 2022 to $39.90 billion by 2029. This emphasizes how HRIS systems are becoming more and more accepted in different companies.
The Importance of HRIS in Modern Organizations
There are many advantages of implementing an HRIS:
Efficiency: Your HR team may concentrate on strategic projects by automating repetitive procedures.
Data Accuracy: Centralized data management reduces errors and ensures consistency.
Compliance: HRIS platforms help ensure compliance with labor laws and regulations by securely storing necessary documentation.
Employee Experience: By allowing employees to access and update their personal information, self-service portals increase employee engagement.
According to Gartner, 55% of HR directors believe that their current solutions do not meet evolving business needs. This highlights the importance of using state-of-the-art HRIS systems to remain competitive.
10 Types of HRIS Systems for 2025
As technology advances, HRIS systems have diversified to cater to specific organizational needs. Here are ten types of HRIS systems you should consider:
1. Operational HRIS
Operational HRIS focuses on administrative tasks, including employee data management, payroll processing, and benefits administration. By streamlining daily HR activities, these solutions guarantee accurate recordkeeping and transaction processing.
Key Features:
Management of personnel databases
Time and attendance recording
Payroll processing
Administration of benefits
Benefits:
This solution optimizes HR operations by streamlining routine administrative procedures.
It ensures that payroll and benefits are processed accurately and on time.
Time and attendance tracking maintain accurate records.
Challenges:
Flexibility is constrained by its focus on administrative duties.
Implementation may take time if data migration processes are inefficient.
2. Tactical HRIS
Tactical HRIS supports HR operations related to hiring, training and development, and performance management. These systems include capabilities for applicant monitoring, training program management, and performance evaluation, which support planning and decision-making procedures.
Using effective applicant tracking technologies, tactical HRIS improves the recruiting process.
It promotes employee growth through structured training and development programs.
Performance assessments more closely complement corporate objectives.
Challenges:
Managing HR operations requires the integration of many systems.
User training may define the most effective use of specific tools.
3. Strategic HRIS
Strategic HRIS is primarily concerned with aligning HR operations with company objectives. These systems include reporting tools and analytics to aid with strategy planning, personnel predictions, and succession planning.
Key Features:
Reporting and advanced analytics
Tools for workforce planning
Succession planning modules
Benefits:
Strategic HRIS offers insightful analysis to help HR executives with making data-driven choices.
Tools for workforce planning enable companies to be ready for expected personnel requirements.
Succession planning features reinforce efforts for leadership development.
Challenges:
Effective data interpretation and application of analytics demand greater expertise.
Smaller companies may find it challenging to justify the cost of implementation.
4. Comprehensive HRIS
Comprehensive HRIS integrates operational, tactical, and strategic functions into a single platform. These all-in-one systems satisfy companies looking for a single solution by providing a complete approach to human resource management.
Key Features:
Full-spectrum HR capabilities
Customizable modules
Scalability to enable organizational expansion
Benefits:
Comprehensive HRIS integrates all HR functions into one seamless system.
It streamlines HR management and eliminates the necessity for several systems.
Systematic and structured data enhances overall efficiency.
Challenges:
Customization and optimization may necessitate technical expertise and considerable time investment.
Smaller enterprises may perceive the significant costs of implementation and maintenance as a hindrance.
5. Cloud-Based HRIS
Cloud-based HRIS systems provide accessibility and flexibility by utilizing distant servers for system hosting. These solutions enable employees and HR managers to view data from any location with an internet connection.
Key Features:
Remote accessibility
Automated updates
Scalable storage
Benefits:
It enables employees and HR staff to use the system from any location.
It reduces IT maintenance costs by automating updates and scaling storage needs.
Regular backups and robust security features ensure data safety.
Challenges:
Cloud-based HRIS may raise concerns about data security and privacy.
The system’s functionality relies on stable internet connectivity, which could pose challenges in some regions.
6. On-Premises HRIS
On-premises HRIS solutions are installed locally on an organization’s servers. These systems provide more control over data and customization but need more IT resources for maintenance.
Key Features:
In-house data storage
Customizable infrastructure
Direct control over security mechanisms
Benefits:
On-site HRIS provides companies with total control over their HR data.
It provides options for customization to meet specific requirements.
The system is accessible even without an internet connection.
Challenges:
On-site HRIS needs significant hardware and software purchases.
Running costs include continuous IT support and maintenance.
7. Open-Source HRIS
Open-source HRIS systems give companies flexibility and customization options, allowing them to adapt systems to their requirements. Companies with internal technological knowledge may want to consider these systems in particular.
Key Features:
Access to source code for custom development
No licensing fees
Community-driven support and updates
Benefits:
Open-source HRIS gives access to the source code of the system, enabling complete customization.
It’s an economical choice for companies since it removes licensing costs.
Community-driven updates ensure continuous system improvements.
Challenges:
Restricted customer support may complicate troubleshooting problems.
Customization efforts could cause compatibility problems with future updates.
8. Specialized HRIS
Specialized HRIS solutions focus on certain HR functions, such as training, payroll, or recruitment. These technologies are optimal for organizations seeking to address particular issues or deficiencies in their existing HR systems.
Key Features:
Tools dedicated to specific HR functions
Integrations with broader HRIS platforms
Modern features for specialized needs
Benefits:
Specialized HRIS focuses on specific HR functions like recruitment or payroll.
It simplifies these targeted processes for maximum efficiency.
Advanced features address unique organizational needs in niche areas.
Challenges:
Specialized HRIS may require integration with other systems to cover all HR functions.
Focusing on specific functionalities can result in data silos.
9. Mobile-First HRIS
Mobile-first HRIS systems are designed to cater to the growing demand for mobility among employees and HR professionals. These systems offer full functionality via mobile apps or web-based platforms optimized for mobile devices.
Mobile-first HRIS offers user-friendly access to HR tools on mobile devices.
It improves accessibility for remote and deskless employees.
Real-time notifications and updates keep employees informed and engaged.
Challenges:
Mobile-first HRIS can pose security challenges if devices are lost or compromised.
Employees without smartphones or reliable internet access may face accessibility issues.
10. AI-Powered HRIS
AI-powered HRIS uses artificial intelligence and machine learning to automate processes, analyze data, and provide actionable insights. These systems are rapidly gaining traction due to their ability to enhance decision-making and streamline workflows.
Key Features:
AI-driven analytics and predictions
Chatbots for employee queries
Automated resume screening and recruitment tools
Benefits:
AI-powered HRIS automates repetitive tasks, saving time for HR teams.
It provides predictive analytics to help HR leaders make better decisions.
Recruitment and talent management processes are optimized using AI-driven tools.
Challenges:
AI-powered HRIS can be expensive to implement and maintain due to advanced features.
Organizations need to manage AI in HR to prevent bias in decision-making carefully.
Choosing the Right HRIS for Your Organization
Selecting the best HRIS for your organization involves evaluating your specific needs and aligning them with the system’s capabilities. Consider the following factors to make the right choice:
Business Size: Small businesses may benefit from cloud-based or open-source HRIS, while larger organizations often require comprehensive or enterprise-grade systems.
Budget: Consider upfront and ongoing costs, including licenses, implementation, and maintenance.
Functionality Needs: Assess whether you need a general-purpose HRIS or a specialized solution.
Integration Capabilities: Ensure the system integrates seamlessly with existing software.
Scalability: Opt for a solution that can grow with your business.
Conclusion
As organizations strive to stay competitive in 2025 and beyond, HRIS systems are emerging as critical enablers of innovation, efficiency, and employee-centric strategies. By leveraging these systems, HR leaders can optimize operations while building more inclusive, agile, and forward-thinking workplaces.
An ideal system will integrate seamlessly with your organization’s goals, provide actionable insights, and enable your HR team to focus on what truly matters: fostering a culture of growth and engagement.
If you’re ready to elevate your HR strategies, Engagedly offers cutting-edge solutions designed to transform how you manage, engage, and develop your workforce.
Schedule a demo today and take the first step towards building a thriving, future-ready workforce.
FAQs
1. What is an HRIS system used for?
HRIS systems are used to streamline HR processes, manage employee data, and enhance decision-making through automation and analytics.
2. What are the benefits of cloud-based HRIS?
Cloud-based HRIS offers remote accessibility, automatic updates, and scalable storage, making it ideal for distributed HR teams.
3. Why is AI important in HRIS?
AI automates repetitive tasks, provides predictive insights, and personalizes HR processes, improving efficiency and decision-making.
4. How do I choose the best HRIS for my organization?
To select the right HRIS, consider factors such as business size, budget, functionality needs, integration capabilities, and scalability.
5. What trends are shaping HRIS in 2025?
Key HR trends include the rise of AI, mobile-first platforms, skills-based hiring, and open-source customization.
Employee performance plays a significant role in any business’s success. Acknowledging employees for their efforts in such an environment creates a more positive work environment and boosts both morale and performance.
SCARF coaching is one effective method that helps improve performance and create a positive environment. This method uses neuroscience to improve communication, reduce stress, and strengthen relationships.
Let’s look at what SCARF coaching is and how you can use it in your workplace.
What Is SCARF Coaching?
SCARF coaching is based on Dr. David Rock’s 2008 creation of the SCARF model. The model explains five areas that influence human behavior in social situations. These areas can cause a positive or negative response and affect how employees feel and work.
The five areas are:
Status: The need to feel recognition and value. How important someone feels compared to others.
Certainty: The desire to know what will happen and clear expectations about it.
Autonomy: The ability to make choices and have control over one’s work.
Relatedness: The sense of belonging and connection with others.
Fairness: The expectation of equal treatment and transparency.
Understanding these areas can help managers create a work environment where employees can do their best work.
Why SCARF Coaching Matters
The SCARF model uses neuroscience to help you understand how people react to social interactions. Research shows that employees who feel they are recognized for their work are more satisfied with their jobs.
When employees feel they are valued, supported, and treated fairly, they give their best and stay loyal to the company.
7 Ways to Master SCARF Coaching Effectively
Let’s look at seven practical tips to master SCARF Coaching and improve employee performance.
1. Recognize Individual Status
Every employee in any organization wants to feel respected and valued. A simple “Thank you,” or appreciation for an employee’s efforts can greatly increase their motivation. When employees know they are important to their company, they feel excited to do their work and become more productive.
How to Apply:
Praise employees in team meetings for their accomplishments.
Give personal feedback to highlight each person’s strengths.
Offer chances for growth, like promotions or new responsibilities.
When employees feel their work is recognized, they feel to polish their work to receive appreciation again and again.
2. Promote Certainty
Not a single employee wants to work in uncertainty. Uncertainty causes stress and negatively affects employee performance. When employees are completely informed about the company’s goals and their role in achieving them, they feel important and perform better.
When they know exactly what is expected of them, they do their work more calmly and efficiently. A study shows that employees who get role clarity are 53% more efficient than ones who don’t.
Keep employees informed about changes in the company.
Have regular meetings to address concerns and answer questions.
When employees understand their role and know what’s happening in the company, they perform their tasks with more focus and confidence.
3. Encourage Autonomy
Employees do their best work when they feel they have control over their tasks. When they feel they are continuously monitored at every step, they may feel frustrated and less creative.
Giving employees more freedom shows that you trust them. A study shows that a staggering 79% of employeeswho have autonomy are more engaged, more accountable, and perform better.
How to Apply:
Give employees the liberty to make decisions about their work.
Encourage them to come up with solutions rather than giving all the instructions.
Motivate employees when they share and try new ideas. Make them feel comfortable.
Employees feel more confident and motivated to do their work when they have the freedom to do it their way.
4. Build Strong Relationships
When employees have a good relationship with their teammates, they feel more connected and work in better coordination. Building strong relationships makes employees feel safe and supported.
A report shows that teams with strong interpersonal relationships at work see a 35% growth in productivity and collaboration. Strong relationships lead to higher levels of trust and collaboration, which improves team success.
How to Apply:
Organize team-building activities to help employees connect.
Show interest in their well-being and listen to their concerns.
A strong connections among employees boost team spirit. It helps employees work together toward common goals.
5. Ensure Fairness
Fairness is appreciated everywhere, especially in the workplace. It is essential for a happy and peaceful work environment. However, according to the Harvard Business Review, only 18% of employees felt their workplace was fair.
When employees feel that they are treated equally and fairly, they are more likely to remain loyal to the company.
How to Apply:
Have clear and transparent rules for rewards, promotions, and disciplinary actions.
Listen to employee concerns and address them fairly.
Treat everyone the same, no matter their role or experience.
Fairness builds trust among employees. It shows that everyone’s efforts are valued which leads to a more positive work environment.
6. Provide Continuous Feedback
Feedback is part of growth. It helps employees understand their performance and areas for improvement. Gallup data show that 80% of employeeswho have received meaningful feedback in the past week are fully engaged in their work.
Regular, helpful feedback helps them stay on track and grow in their roles.
How to Apply:
Give feedback that balances praise and suggestions for improvement.
Arrange regular meetings to discuss progress and goals.
Encourage peer feedback so everyone can learn from each other.
With regular feedback, employees feel supported. It helps them improve their performance over time.
7. Use Technology for SCARF Coaching
Technology is a necessity today. It makes SCARF Coaching easier and more effective to implement. Technological advancements allow managers to communicate, track performance, and understand employee behavior. Using the right tools makes the process smoother.
How to Apply:
Use software to set goals and track progress.
Team up with tools to improve teamwork and communication.
Analyze data to find any missteps and solve them quickly.
With the use of technology, SCARF Coaching has become easier to handle. It helps managers support their teams more efficiently.
Challenges of SCARF Coaching and Ways to Overcome Them
SCARF Coaching has lots of benefits, but there are also some weaknesses. Knowing these challenges and how to handle them:
1. Lack of Understanding
Some managers do not fully understand the SCARF model or how to use it properly.
How to Overcome:
Offer simple training sessions or resources that explain the SCARF principles. Then, help managers learn to apply them in real situations.
2. Resistance to Change
People may hesitate to try new methods due to fear or doubt.
How to Overcome:
Inform employees about the benefits of the SCARF Coaching method. Involve employees in the process. Start small with gradual changes to build acceptance and trust among them.
3. Balancing Individual Needs
Each employee is different, and it is hard to meet everyone’s SCARF needs equally.
How to Overcome:
Talk to each employee personally to understand their individual needs and priorities. Approach each team member according to their behavior and sentiments without compromising fairness.
4. Limited Resources
There might not be enough time, tools, or budget to implement SCARF coaching fully.
How to Overcome:
Focus on the key areas that will have the most immediate impact. You can use affordable or free tools to implement at your workplace.
5. Measuring Success
It can be not easy to track and measure the result of SCARF Coaching.
How to Overcome:
To evaluate progress, you can use surveys, feedback, and performance metrics. Based on the evaluation’s data, make changes.
When you consider all these challenges, SCARF Coaching becomes a powerful tool for growth and teamwork.
Transform Your Team with SCARF Coaching
Mastering SCARF Coaching is a way to transform and level up your team. When you focus on the five key areas of SCARF—status, certainty, autonomy, relatedness, and fairness—you create a workplace where employees feel valued, motivated, and engaged. SCARF Coaching helps encourage a culture where employees work together to achieve shared goals.
Platforms like Engagedly can be a great help to empower your workforce and create a more positive and productive workplace. It helps you simplify feedback, track performance, and create a culture of continuous growth.
So, what are you waiting for? Request a demo with us today to discover how you can build a high-performing team with innovative tools that empower managers and employees.
FAQs
1. What is SCARF Coaching?
SCARF Coaching is a leadership approach based on the SCARF model. It focuses on five domains: status, certainty, autonomy, relatedness, and fairness. This approach helps improve employee performance and engagement.
2. How does SCARF Coaching improve employee performance?
SCARF Coaching enhances communication, builds trust, reduces stress, and encourages a positive work environment. It also helps in leading to better performance and collaboration.
3. What are the benefits of using SCARF Coaching?
It helps boost motivation, improve retention, enhance team collaboration, and create a fair and inclusive workplace.
4. Can SCARF Coaching work for remote teams?
Yes, SCARF Coaching principles can be applied to remote teams through clear communication, recognition, and enabling virtual connections.
5. How can I start implementing SCARF Coaching?
Begin by understanding the SCARF model. Address and implement each domain in your leadership style. After that, start using tools like feedback and recognition to support employee needs.
Productivity at work is more than just getting things done. It’s about making a place where people and groups do well, where participation, health, and development are important.
The usual measures, like goals or sales numbers, don’t always consider all the things that help a company succeed in the long run. This is where positive performance indicators (PPIs) are essential. They assess the aspects that contribute to improving productivity in a way that cannot be evaluated in numbers.
This blog post will discuss how good performance indicators can allow you to boost productivity and encourage the workforce to perform to the best of their capacity.
The Rise of Positive Performance Indicators (PPIs)
Think of the conventional workplace as a well-oiled machine, with metrics like deadlines, tasks done, or units produced serving as the nuts and bolts.
While these classic indicators offer a glimpse into the machine’s functioning, they don’t tell us much about how the gears work together, how well the machine is maintained, or how the people working on it feel. This is where positive performance indicators are the game-changers.
PPIs don’t just measure results; they measure the processes, people, and culture behind those results. They capture the essence of how employees work, how they’re feeling, and how they’re growing within the organization.
PPIs center on behaviors like collaboration, engagement, employee satisfaction, and leadership, which directly impact a company’s overall success.
The Shift from Traditional Metrics to PPIs
In most workplaces, traditional key performance indicators (KPIs) have only looked at the output—how much work is done and how fast. Although this is crucial, it doesn’t consider the human side.
Positive performance indicators are different because they focus on what is really important: how employees feel about their work and how these feelings affect their performance.
Rather than simply measuring what gets done, PPIs measure how it gets done—focusing on aspects such as:
Employee engagement
Leadership support
Team collaboration
Professional development
Work-life balance
By concentrating on these positive drivers, organizations can foster an environment that nurtures individual and collective success.
Changing to PPIs marks a significant change in how we view success. Now, it’s not just about finishing tasks; it’s about creating a happy and motivating work atmosphere that leads to long-term achievements.
This is why PPIs are essential for boosting productivity in the workplace.
1. Building a Positive Work Culture
Businesses must have a positive work environment for growth. When employees believe they are part of a helpful team that collaborates, they feel more motivated to stay on track and do well.
Key performance indicators (KPIs) are important in creating this environment by promoting respect, good communication, and teamwork. Businesses can track how effectively the workplace culture promotes cooperation and creativity by assessing team accomplishments, open communication, and helping each other.
Additionally, as per various studies, organizations with a happy workforce have fewer missed days and enjoy increased productivity. This highlights the significance of building a positive work atmosphere to increase employee engagement and motivation.
Boosting Employee Satisfaction and Well-Being
PPIs allow companies to measure the output and the well-being of their employees. A workplace that cares about employee satisfaction fosters better engagement, leading to better productivity. Employees who feel valued and supported are more motivated to give their best.
By prioritizing factors such as work-life balance, mental health assistance, and ensuring employees are happy, organizations help workers complete tasks and succeed. Businesses are now offering flexible work time and health benefits because they understand that a happy employee is more productive.
In traditional performance reviews, employees receive feedback only once or twice a year. However, PPIs advocate for a culture of continuous feedback, helping employees stay on track with their goals while encouraging personal and professional growth. Employees receive feedback regularly to help them adjust to changes promptly and stay focused on achieving company objectives.
By establishing consistent opportunities for feedback, employees are motivated and empowered to continue improving, whether by learning new skills or enhancing teamwork. This continuous growth not only benefits individual success but also contributes to overall progress within the organization.
Sustaining Long-Term Productivity
Although it’s simple to increase productivity rapidly, it’s crucial to use a sustainable method for lasting success.
PPIs concentrate on keeping your employees healthy, balanced, and developing, all of which are vital for maintaining high productivity levels in the long run. By keeping an eye on things like preventing burnout, managing stress, and ensuring job satisfaction, businesses can stop fatigue and disengagement from becoming problems. This enables employees to keep working at their best for a long time.
PPIs focus on creating a work setting where productivity is not a short race but a long-lasting effort. This helps employees maintain their energy and drive sustainably, resulting in steady performance and achievements.
A study by SHRM (Society for Human Resource Management) found that companies that focus on both employee well-being and performance have less turnover and higher job satisfaction.
Key Components of Positive Performance Indicators
Organizations must concentrate on primary elements to better execute positive performance indicators. These core elements maintain productivity while building a cheerful, engaged workforce.
Employee Engagement
Engagement is among the key facets of PPIs. An engaged workforce is also emotionally more invested in their work and contributes creatively.
In addition, PPIs can assess engagement by measuring employee participation in business initiatives, survey replies, and employee involvement in decision-making. Engaged employees are the backbone of productivity, and PPIs help to quantify this engagement.
Work-Life Balance
Experts who maintain a healthy work-life balance pay attention to how employees manage their work and personal goals.
Moreover, companies can assess if they are supporting their employees’ overall health by looking at things like flexible work hours, vacation policies, and how employees feel about their workload.
Collaboration and Teamwork
Working collectively with others is important in workplaces, and performance assessments that promote teamwork encourage employees to work together towards common objectives.
Monitoring projects that need input from multiple divisions, taking input from colleagues, and celebrating accomplishments as a team are imperative for fostering a culture of collaboration.
Recognition and Feedback
Employees should know that their hard work is recognized. Recognition programs, feedback surveys from employees, and peer recognition all play a role in making sure employees feel valued for their efforts. This acknowledgment creates a sense of belonging and encourages employees to do their best.
Leadership Support
Having good leadership is really important for a workplace to do well. PPIs can check leadership skills by seeing how well managers help their team members, how open communication is, and how managers help employees reach their personal goals.
When leaders give guidance, resources, and support, employees are more likely to stay motivated and work well.
Overcoming Common Challenges with PPIs
Using positive performance indicators can be difficult for organizations that are used to traditional metrics. Organizations may encounter some challenges, but they can overcome them with the right approach.
Resistance to Change
Employees and leaders who are accustomed to traditional KPIs might not be open to the idea of switching to PPIs. To address this resistance, it is vital to communicate clearly about the advantages of PPIs and how they support the organization’s long-term goals. Get employees involved and show them how PPIs can help them both personally and in their careers.
Balancing Metrics
It’s easy to fall into the trap of measuring too many things simultaneously. Focusing on too many positive performance indicators can overwhelm employees and dilute their impact. Select the most meaningful indicators that directly contribute to workplace culture and productivity.
Avoiding Micromanagement
PPIs should not be used to micromanage employees. Instead, they should empower employees to reach their full potential. Focus on providing guidance and support rather than dictating every action. When done correctly, PPIs allow employees to thrive without feeling suffocated.
Enhancing Employee Experience with Positive Performance Indicators
When employees feel valued and respected, they are more likely to be motivated, creative, and dedicated to their jobs. Companies can improve the employee experience by concentrating on positive performance indicators, which help employees feel supported, acknowledged, and empowered.
Employee Empowerment
When companies switch from using only traditional metrics to a more complete approach that focuses on well-being, personal growth, and teamwork, they show that their employees are important.
Empowering employees with PPIs involves giving them chances to learn, make decisions on their own, and receive regular feedback that helps them grow both personally and professionally.
Moreover, organizations that empower employees through development opportunities see higher profitability and productivity. By investing in people, companies can yield impressive results across various metrics.
Alignment with Organizational Goals
One of the challenges in any organization is ensuring that employees’ individual goals align with the broader company objectives.
Positive performance indicators help measure this alignment by tracking key behaviors such as goal setting, contributions to company-wide initiatives, and adherence to the company’s core values. Employees who see that their work contributes directly to organizational goals are more likely to be engaged and productive.
Additionally, the alignment of personal and organizational objectives cultivates a sense of ownership in employees, motivating them to work harder and with greater dedication. The connection between individual effort and company success becomes clearer, encouraging a sense of purpose in daily tasks.
Promoting Work-Life Integration
In this competitive era where work-life balance is highly valued, positive performance indicators can be a strong tool for companies to ensure that employees don’t feel overworked.
By assessing how well employees can handle their work obligations alongside individual commitments, businesses can execute policies that promote flexibility. This can comprise things like remote working choices, flexible working hours, or paid time off for self-care. When employees feel they can keep a healthy work-life balance, they are more likely to be productive and loyal.
Incorporating these flexible options into PPIs reinforces the notion that productivity isn’t just about working longer hours—it’s about ensuring employees work smarter, feel supported, and maintain their well-being.
Conclusion
Workplaces these days do much more than push employees to complete targets—it’s about fostering an atmosphere where they are encouraged, supported, and engaged.
Positive performance indicators offer a unique perspective on productivity, contracting on the human factors that lead to long-term success. By tracking and promoting positive behaviors, companies can build a culture where employees succeed, collaborate, and remain engaged.
Want to build a workplace where your employees genuinely love what they do? With Engagedly, you can focus on positive performance indicators that promote engagement, teamwork, and real growth. Let’s build a culture where your employees feel valued, supported, and ready to give their best every day. Book a demo with Engagedly and see the difference!
FAQs
1. What are positive performance indicators (PPIs)?
PPIs are metrics that look at how employees interact, work together, and feel at work, instead of just focusing on things like money or finished assignments.
2. How do PPIs differ from traditional performance indicators?
Traditional measures look at outcomes like sales goals, but PPIs highlight the people and cultural factors that lead to those outcomes, such as working together as a team, feeling happy with your job, and developing professionally.
3. Can positive performance indicators improve workplace productivity?
By promoting a supportive and engaging environment, PPIs boost motivation, lower burnout, and improve cooperation, leading to sustainable productivity.
4. What are examples of PPIs in action?
Examples include tracking employee engagement scores, measuring participation in team projects, monitoring feedback frequency, and assessing work-life balance metrics.
5. Why should organizations adopt positive performance indicators?
Using PPIs in the workplace makes it more focused on people, which helps keep employees longer, boosts morale, and improves business results in the long run.