What Is A Performance Management System?

What is a Performance Management System?

A robust performance management system diligently monitors and records employees’ job performance through the integration of advanced technologies and methodologies. This system guarantees a consistent and accurate assessment, aligning employees with the strategic objectives of the business. By leveraging a combination of cutting-edge tools and strategic approaches, the performance management system facilitates employees in making valuable contributions toward the overall success of the organization.

Performance management comprises various vital HR functions like continuous progress review, real-time feedback, frequent communication, training employees to improve performance, recognizing good work, rewarding improved performance, goal-setting, etc.

A performance management system, a.k.a. HR performance management system, helps HR managers establish clear performance expectations through which employees can easily understand what is expected of their job. It enables managers to instill in their employees the importance of individual accountability for meeting goals and evaluating their own performance.

Also read: Importance of employee performance management system

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Performance Management System for the Modern Workplace

The changing technical landscape, irregularities in the global supply chain, the great resignation, and the sudden shift to a hybrid workplace setup are putting forth innumerable challenges to businesses. To remain competitive in the current global market, it is necessary to have a continuous performance management system. Such a system will help in realigning resources towards organizational objectives and also provide warning signs to highlight problems in workforce performance and practices.

Businesses need a flexible, smart, and technically advanced performance management system that forms the foundation of conversations, changes, and progress. That’s why companies such as Google, Microsoft, Netflix, Adobe, Uber, and many others have transformed their performance management systems. They no longer work on an annual performance grading system but on a continuous system that can help employees stay productive and make them accountable for their transformational growth.

Furthermore, more than productivity and efficiency, consumers are now valuing innovation, creativity, and problem-solving. To live up to these expectations, organizations need to continuously improvise their performance management strategies.

Organizations must rethink and redefine their performance management practices as new-age workplaces replace traditional work setups.

Performance Management Cycle Stages

There are 4 stages in a performance management cycle.

  1. The planning phase is where leaders and managers create SMART goals for their teams
  2. Monitoring through check-ins and feedback to track the progress made on goals
  3. Reviewing the overall performance of teams to contemplate what worked favorably and what didn’t
  4. Rating and rewarding involves rating employees based on their performance and rewarding them suitably to motivate them.

Performance Management System Components

An employee performance management system includes multiple components that are essential to creating an engaging and productive work environment. They build on the foundation of performance management by providing a platform to manage, track, and assess employees’ performance. Let us understand the different components of the performance management platform and how they help in employee growth and development.

1. Objectives And Goal Setting

Planning is a crucial component of performance management. Setting challenging goals motivates employees to improve their performance rather than having no goals at all. Goals aren’t just meant to be set for individual employees; they work better if you have departmental goals and align them with your organizational goals. A performance management system that doesn’t allow you to set goals or plan doesn’t contribute to improving organizational productivity.

Performance goals should be set in collaboration, both by the manager and their direct reports. Discussing and setting goals together helps managers and their employees gain a better understanding of their current performance and their future performance abilities.

Also Read: Guide To Setting Employee Goals Through Engagedly

2. Ongoing Communication

The next component of the performance management system is communication. Having an effective performance management system in your organization helps you create a culture of ongoing communication about your team’s goals, training, etc. Having an internal communication tool can simply do all this.

It is always good to follow up on what your direct reports are working on and how they are managing to meet their goals. This keeps them motivated. As a manager, you can help them improve by giving them suggestions about their work without having to wait for the next performance review.

Also Read: Download the ultimate guide to employee engagement survey and templates

3. Performance Review

This is the part where managers give their reviews of the performance of their direct reports. These reviews are generally annual or quarterly. The general review procedure is a self-evaluation done by employees, followed by a thorough review by a manager.

An important aspect of performance reviews that has changed recently is peer evaluation: 360-degree feedback. 360 feedback and peer evaluations allow employees to evaluate their managers and help them understand where they can improve themselves and how. The process of rating one’s manager can be complicated, but once it becomes a practice, the overall team productivity increases.

4. Recognizing Good Performance

Recognizing good performance is as important as identifying bad performance. When employees do not meet business expectations, it is important for them to understand where they are lacking. This helps them do it better the next time.

In the same way, when employees accomplish something or go out of their way to accomplish a goal, as a manager, you should recognize their effort. Most performance management systems come with employee reward programs that allow managers to reward their employees or publicly praise them for their contributions. This may seem small, but it is one of the most crucial components of a high-performance culture.

5. Feedback & Suggestions

A performance review does not end with either “good work” or “needs improvement.” Giving proper feedback and suggestions to improve performance is the next important component of a performance management system.

This component allows you to tell your employees exactly where they need to improve and how to make it possible. Studies state that employees who receive frequent feedback on their performance are more likely to contribute to organizational success. Therefore, it is a good practice to have a feedback process in place to help improve organizational performance.

Also Read: How Important Is Feedback In Today’s World?

6. Learning & Development

Learning and development are critically important for the success of any organization. Inculcating a learning culture can motivate employees to reskill and upskill themselves and be a part of a dynamic, skilled, and knowledgeable workforce. Additionally, it helps in retaining employees and creating a brand image.

Integrating a performance management system with multiple individual platforms enhances active learning within the organization. Through interactive features like course design and assignment, managers can assign courses and modules to employees. Furthermore, it can also be used to conduct check-ins to understand the progress made by employees. Either way, L&D should be a continuous process, and managers should encourage employees to learn more and develop their performance potential.

Performance Management Tool

Frequently Asked Questions

Q1. What is a performance management system and how is it important?

Ans. Performance management is a system of processes and tools that helps leaders track and analyze the performance of their employees and mentor or coach them to help them work at their highest potential.

Q2. What are the stages of a performance management cycle?

Ans. The different stages of a performance management cycle are as follows:

  • Planning
  • Monitoring
  • Reviewing
  • Rating

Q3. How does a performance management system help?

Ans. It helps by providing real-time analysis of employees’ performance and helps leaders understand the learning needs of employees. It helps in the achievement of organizational goals by aligning employee activities to the company’s objectives.

Q4. What is the role of the performance management system?

Ans. The role of the system is to align employees’ activities to achieve optimal performance and fulfill the organization’s goals. This is done through constant tracking, analyzing performance, and providing coaching to employees based on the requirements and observations.

Q5. What is PMS in HR?

Ans. PMS in HR is a systematic and objective method for consistently measuring employee performance. This approach empowers companies to monitor progress towards strategic goals, ensuring effective collaboration among employees and departments to achieve desired outcomes.

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Top 10 Performance Management Software In 2024

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 software that uses crucial parameters in managing and monitoring the workforce. 

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?

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 way-outs to get 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 tool is 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.

Also Read: How continuous performance management can help improve productivity?

Boost Employee Engagement and Productivity

(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.

Also Read: How to build a successful upskilling and reskilling program?

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.

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 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.

Also Read: How to effectively review employee performance?

Automated and Intuitive

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.

Also Read: Why companies should invest in people analytics?

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.

Also Read: How to set OKRs for success?

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. 

Also Read: Top 5 reasons to have a learning management system at workplace

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.

Talent Management Software

Top 10 Performance Management Systems in 2023

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 below 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 a people enablement platform that offers a range of features for workforce management. It is a scalable platform that is available to organizations of all sizes. The automated tool works on the E3 module- engage, enable, and execute, to help HR managers create a continuous feedback mechanism to enhance employee engagement, collaboration, and productivity. The platform is user-friendly and meets the needs of the modern organization by allowing managers to assign goals and tasks to their team members and provide feedback through frequent check-ins. It is loaded with multiple features to find performance gaps and offers a learning path to the employees to nurture and train them for higher responsibilities. 

Solutions offered by Engagedly:

  • Performance reviews and competency assessments
  • OKR alignment and tracking
  • Ongoing check-ins and project reviews
  • Leadership assessment and succession planning
  • New employee onboarding
  • Drive cultural alignment
  • Measure and improve employee engagement
  • Training and development of employees
  • OKR consulting and certification

Performance Management Tool


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:

  • Increasing Engagement
  • Improving Manager Effectiveness
  • Remote Team Development
  • Aligning Company Success
  • People Development

Tiny Pulse

Tiny Pulse is an employee engagement tool that assists organizations in developing an engaging, connected, and performance-driven team. The tool makes use of intelligent insights to create surveys and gather continuous and transparent employee feedback.

Solutions offered by Tiny Pulse:

  • Employee surveys and pulsing
  • Recognition and rewards
  • Annual surveys
  • Performance and coaching
  • Diversity, equity, and inclusion
Also Read: Performance management in a hybrid work culture


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:

  • Goals and OKR management
  • 1:1 and team meetings
  • Personalized learning and development
  • Engagement surveys with real-time insights
  • Development framework for employee growth


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
Also Read: Seven reasons why goal setting is important


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:

  • Managing qualitative, quantitative, individual, and team OKRs
  • Supports upward, downward, lateral, and external reviews
  • Continuous feedback management
  • HRIS and new employee onboarding workflows
Also Read: How to build performance management metric strategy?


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:

  • Deploy and track progress
  • Individual progress tracking
  • Dashboards for clear visualization
  • Gathering intelligent performance insights
  • 1:1 feedback mechanism


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:

  • OKR and goal management
  • Continuous performance tracking through 1:1 reviews, feedback, and praise
  • Actionable people insights
  • Continuous employee development through growth plans
Also Read: How to set OKRs for healthcare professionals?


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 the 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
Also Read: Steps to creating a performance based culture in your organization


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
  • Application tracking
  • Employee onboarding
  • Employee engagement tools and surveys
  • Performance management system

Concluding Words

Performance management software are 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 the employees. By shifting from traditional tools to the 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.

Performance Management System

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Why Engagedly is The Perfect Tool for People and Strategy Alignment

Every company’s success is dependent on its employees. However, not all organizations have a well-coordinated people strategy to support, connect, and interact with their workforce. Research by Gartner shows that a lack of people-centric policies, especially in post-pandemic virtual or remote workplaces, affected employee performance and well-being.

Organizations will only achieve their strategic goals if they prioritize their people. And this is where a people strategy alignment comes into the picture.

A people strategy entails more than just filling immediate hiring needs or implementing an onboarding program. It governs the entire employee-employer relationship. And it is up to HR leaders to develop an influential people strategy to attract and retain talented employees in today’s workplace.

What is a People Strategy?

A people strategy is a company’s overall plan for attracting, engaging, training, and retaining employees. It establishes the strategy for a company’s relationship with its workforce at all stages of the employee lifecycle, from recruitment to offboarding.

Also Read: How To Facilitate People Strategy Sessions in 2023?

Leaders should collaborate with the rest of the C-suite, line managers, and finance to develop a people strategy. This collaboration serves two purposes: For starters, it keeps everyone on the same page. Second, it ensures that the people strategy achieves the organization’s overall business objectives.

As these groups come together, it’s critical to clarify what you want to achieve with a people strategy and keep these goals in the forefront of everyone’s minds to ensure everyone stays focused on them. According to Boston Consulting Group research, an influential people strategy should allow a company to:

  • Develop talent management
  • Improve leadership
  • Create a healthy organizational culture
  • Promote diversity, equity, and inclusion

What is the Importance of People and Strategy Alignment?

1. Increased decision-making speed

Indecision can stifle productivity, lead to missed deadlines, and have a domino effect throughout an organization. Organizational goals and alignment clarify who has decision-making authority over each work activity. Aligned organizations make better decisions and take less time to execute. Employees can also focus on doing their jobs rather than determining who needs to be consulted when making decisions.

2. Increased employee engagement

Most employees want to enjoy their jobs, believe their work matters, and know they are making a difference. An aligned organization communicates an employee’s work to the organization’s overall strategy. Employees are more satisfied and effective when they understand how their work relates to company strategy.

3. More resources are not necessary

An aligned organization clearly distinguishes between activities that promote growth and those that serve as a support function. It ensures that the company focuses its limited resources on the appropriate actions to promote growth, and align functional and business priorities. This enables businesses to do more with less, resulting in cost savings while increasing performance.

4. Enhanced self-government

Employees develop a clear vision of their work, priorities, and, most importantly, decisions as a natural result of a well-aligned organization. Because there is less ambiguity surrounding their responsibilities, employees have the confidence to make decisions independently rather than waiting to be told what to do or asking permission.

5. Reduce customer confusion 

Customers and external stakeholders expect assurance and deliverables to be met consistently. An aligned organization develops mechanisms to ensure that processes within the organization exactly deliver what the customer expects. This way, the organization can consistently ensure customer satisfaction.

How to Attain Strategic Alignment?

  • Ensure that all leaders are on the same page

The executive team is responsible for outlining clear and compelling options for where to play and what actions to take. When done correctly, a successful strategic plan positions a company to outperform the sum of its parts.

Before you can expect your teams to consistently execute the strategy across the company, your leadership team must all agree that the strategy is clear, credible, and implementable.

Invest the time and effort necessary to align your leaders on your vision, mission, values, target market, unique value proposition, success metrics, and strategic priorities.

Also Read: How Inclusive Leadership Boosts Employee Engagement And Performance
  • Involve Next-level Leadership Actively

Next-level leaders (one level below the executive team) must buy into and commit to the strategic direction to achieve accurate strategic alignment. They must be actively involved in the strategy design process to accomplish this.

After you’ve got the executive team on the same page in step #1, we recommend getting honest and direct feedback from next-level leaders on what needs to be clarified, added, changed, or deleted for the strategy to be clear, credible, and implementable enough to move forward in unison. Then, have an open discussion with next-level leaders about the changes you did and did not include in your strategic plan and the reasoning behind your decisions.

  • Demonstrate how line managers and individual contributors contribute to the success

Line managers and employees will be far more invested in the strategic plan for success if they have a clear view of their role. Every employee contributes, from the cafeteria worker who understands that a nutritious and appealing meal sends employees back to work well-fed to the accountant who understands that accurate and timely reporting expedites decision-making.

Ascertain that everyone understands the overall strategy, and then assist them in defining their specific goals, roles, success metrics, and unique contribution.

  • Maintain the Plan in the Foreground

Your strategy communication should be clear, consistent, and ongoing. Every meeting should cover strategic links, progress, issues, and how to solve emerging problems before they become too big to handle.

The plan and progress should be communicated to all employees via emails, one-on-one meetings, company newsletters, social media, or any other means available to you. Be innovative while remaining transparent.

How Engagedly Helps to Achieve People and Strategy Alignment?

Creating a solid strategy is something that every organization strives for. A highly effective strategy assists organizations in establishing a competitive position, increasing market share, and thriving in a harsh business environment. Or they become obsolete and die slowly. However, here we will tell you why the Engagedly learning feature is the right tool to execute that strategy and bring the strategic processes to life.

people strategy alignment

1. Improve the onboarding process for new employees

The process of including new employees in an organization is known as onboarding. It’s critical to understand the distinction between onboarding and orientation. Orientation is a one-day event that usually kicks off the onboarding process. However, onboarding can last for months or even years after an employee is hired.

When hiring new employees, many businesses need to pay more attention to the importance of onboarding. 22% of businesses don’t have a formal onboarding program yet, and 49% have a partially successful process. What does lousy onboarding look like? New employees are less productive, stressed, disconnected, and more likely to seek alternative employment.

Companies spend a lot of money on employee turnover because of poor onboarding procedures. Onboarding increases employee engagement. The process benefits both new and returning employees, and company leaders.

The first days of a new job leave an indelible impression on an employee and lay the groundwork for their overall engagement with the organization. Engagedly tools such as LMS, goal-setting module, 30-60-90 reviews, file drive feature, and social sharing platform can assist you in providing your employees with the tools, knowledge, and roadmap they require from day one.

2. Maintain regular check-ins and project reviews

A check-in meeting allows managers to receive updates on current projects and challenges, reinforce team goals, and identify potential engagement issues as they arise. In other words, a check-in allows you to take the temperature of your team.

They are more akin to one-on-one discussions between managers and employees about their work, goals, well-being, and development plans. They will assist you in better understanding what your employees are working on and how you can help them. Employees are 3.5 times more likely to contribute to their full potential when they feel like they belong at work, which regular check-ins facilitate.

Also Read: Tips To Create A Culture Of Frequent Employee Check-ins

Employee engagement is becoming increasingly important for employees, as they feel isolated and unsupported due to remote work. According to Harvard Business School, 40% of those polled felt physically and emotionally isolated from their workplace.

engagedly tool

Engagedly is a tool that provides tools for teams working on projects across departments and regions to conduct regular check-ins and project reviews. You can ensure progress and accountability across your organization with our ongoing check-ins, 360 assessments, OKR, and goal-setting software.


A people culture solidifies an organization’s foundation as a people-focused enterprise. Employees’ needs should be heard, acknowledged, and addressed. Great people managers are the critical missing link in developing a great organizational culture. Encourage good people management by including it in key performance indicators for managers. 

Talent Management Software

Frequently Asked Questions

Q1. What is the relationship between HR and business strategy?

  • Employees in the organization reflect all elements that contribute to the actualization of the Business strategy, such as skill, attitude, competencies, reward, recognition, satisfaction due to effective promotion policy, desired behaviors to keep customers satisfied, performance, required passion, team spirit, and so on. This translates into business numbers like productivity, growth, and profits.

Q2. How do you get ready for a strategic planning session?

  • Several factors can impact how you prepare for a strategic planning session. What type of preparations are required heavily depends on where the group is in the strategic planning process. For example, if a company’s management team is starting, it may indicate that building clarity and alignment around the planning approach is critical.

Q3. Why is strategy formulation more difficult than strategy implementation?

  • Strategy implementation is transforming a previously developed strategy into a set of concrete actions. Strategy implementation is more complex than strategy formulation because it necessitates significant work and coordination. Implementation necessitates resources, time, and effort to ensure the plan is carried out effectively. 

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8 Attributes of an Effective Performance Management Software

The current trends show a shift in the thinking of managers and how they evaluate employee performances. The rise of the culture of ongoing feedback, 360 degree feedback, and regular employee engagement have resulted in a review of existing performance management processes. This change has also affected the design and function of performance management software. The mental shift has revamped what any company should look for in an effective employee performance management solution.

This article will help define employee management software and discuss its importance to companies. We also discuss attributes to watch out for when purchasing it.

What is a Performance Management Software?

A performance management software is a tool that helps companies enforce their performance systems more effectively. Companies do this by setting and monitoring goals, giving feedback, and streamlining other performance management processes. It aims to analyze and evaluate employees’ performances over a period. 

Also read: Top 10 Performance Management Software to use in 2022

The primary aim of a performance management tool is to simplify and speed up the performance management system of a company. And because it speeds up the process, the performance evaluation solution must be the right fit for the company’s existing performance management systems.

Why Does a Business Need Performance Management Software?

A business needs performance evaluation software for various reasons. Some of them are:

  • Employee engagement
  • Saves time
  • Motivates employees
  • It is the future

Let’s know about the reasons in details.

Employee Engagement

A performance management tool helps in improving employee engagement in more ways than one.

  • Goal-setting keeps them focus and on track.
  • Feedback and recognition help them reinforce what they do.
  • Advanced analytics and reports help them understand their strengths and weaknesses.

Using a performance software solution is one of the many ways managers can improve how engaged their employees are.

Also read: Do These 8 Things To Improve Employee Engagement 

Saves Time

Manually monitoring, providing feedback, and conducting follow-ups are time-consuming and ineffective in the 21st century. A company adopting and using performance management solutions will save time and help improve the company’s productivity – which improves profits. 

It Helps to Motivate Employees

Its human nature to dwell on the mistakes or shortcomings of others and not praise or give due recognition after achieving their goals or performing other feats for the company. This behavior can easily lead to an unhappy and unmotivated workforce. The performance solution recognizes achievements faster and gives due credit for reaching their goals on time – creating a happy and motivated workforce.

The Future

The last point here is performance management tool is the future of evaluating employees. Zion market research expects the industry to grow by 13% in the next seven years and earn $5.63 billion by 2026.

Attributes of an Effective Performance Management Software

When a company wants to purchase performance evaluation software, there are some essential features to look out for. We look at eight of them in this section.

The 8 attributes of an effective performance management software are:

  1. Ability to set goals
  2. Provide reports and analytics
  3. Tailored and continuous feedback
  4. 360 degree feedback software
  5. Self assessment
  6. Process a simple interface
  7. Allow for effective communication
  8. Recognition

1. Ability to Set Goals

A study by Harvard Business  covering some group of students over ten years found that students who had clear written goals were on average earning ten times those who didn’t have a one or commit it on paper. The study teaches the importance of setting goals.

A good performance management solution allows for its users to customize their goals. Adding, updating, and setting a deadline date should be possible. The application should also permit supervisors and peers to monitor the set goals and the progress. Possessing this feature will allow managers to monitor their teams, especially if a large unit. It also helps motivate the employees.

It should be flexible, allowing the company to assign goals and objectives in line with the company’s goals. 

Also read: 7 Reasons Why Goal Setting Is Important

2. Provide Reports and Analytics

An organization has a lot of data to process in a limited amount of time. This is true when the data is necessary to make vital decisions.

A good performance management software will summarise all of this data and make a concise report on the activities of individual employees. The software should be able to display employee’s progress in the form of charts and graphs. Doing this makes the information easily digestible.

3. Tailored and Continuous Feedback 

The cry for feedback from employees has only gotten louder every passing year.

A Study analysed by HR Drive found that business leaders expect managers to give daily feedback, which is 170% higher than in 2018. The study also showed that the number of employees who want a formal monthly performance conversation is 89%. The significant change means management needs an employee performance management solution tailored to the employee needs and supportive of continuous feedback.

This feature should give the manager or supervisor the option to send a direct message straight to an employee using the data provided by the software. The manager should also have the ability to comment on the progress of a project, the employee meeting their set goals, or missing out on the deadline. The aim is to have an application that supports feedback and growth within the company.

4. 360Degree Feedback Software

Alongside regular feedback, there is also the growing trend of a 360degree feedback system. Most employees who go in for their review feel a sense of unfairness, as managers can be subjective in their judgement. 360 degree feedback helps to amend this by getting feedback from other managers /superiors, clients, and peers, making the review more objective. 

A performance management tool should allow for this feature, making users anonymous when filling out a 360 feedback form. Some very comprehensive applications create a graph with the information gathered and show the company’s average grade. 

The primary purpose of this feature is to know areas they can make improvements and give recognition to an employee’s strong points. They should not make it into a competition, as even though it can be beneficial – if taken too far can be counterproductive to an organization.

Also read: 10 Benefits of 360 Degree Feedback 

5. Self-Assessment

Assessing yourself is a tough task. The Dunning-Kruger-effect study shows we tend to either downplay our skills or overestimate them. In summary, we are not good judges of ourselves. This problem goes even deeper because we aren’t the best judges of others either, as bias will always affect our judgement. Therefore, it’s necessary to have a data-driven focused approach, and that is what a good performance application will offer. 

The application should show the employees their stats on various KPIs. These stats give the employee a good image of where they are now and need to be. The employee can even suggest ways to improve their performance to their supervisors and the tool can act as a reality check for any employee since it only relies on data. It can also help spur individuals to grow and keep them accountable to themselves.

6. Possess a Simple Interface

A simple interface for a new software application is necessary to understand how it works and to adapt. The interface must be user-friendly to facilitate the implementation and learning phase. The entire organization will use it, and so it should have user-friendly dashboards that allow individuals to access information conveniently. A simple interface and an easily navigable dashboard make users adapt quickly and learn to maximize the application functions.

7. Allow For Effective Communication

Effective communication is the core of any successful company. Employees need information communicated to them to improve their KPI and stay in tune with the organizational goal. The management needs the information conveyed to them in a timely fashion to make strategic decisions. 

An excellent performance management tool should possess good communication options. The ability to send group messages, direct messages, and make group announcements should be present. It should also have the ability to create groups and set meeting schedules and reminders. Posting externally to other social apps like LinkedIn, Facebook and Twitter should be possible soon.

8. Recognition System

Recognition is a vital part of any employee’s life. It is what they crave, what helps them keep growing and improving, and what keeps them focused. Recognition is such a critical part of performance management, a recent study by achievers shows there is a 44% chance of losing employees if you don’t recognize them. So, it is not a debatable feature to have in performance management software. 

The solution should have features that highlight and reward employees who outperform their KPIs and meet their targets regularly. This feature will help employees stay encouraged concerning meeting their goals.

Also read: Employee Rewards And Recognition For An Engaged Workforce

Some Additional Points To Keep In Mind

While the characteristics above are some of the essential attributes to note, there are more we would like to highlight:


The software application scalability is necessary because it ensures the company and software application can grow together. No company wants an application that performs but isn’t scalable because they will need to change it in the long term. 


A cloud-based performance evaluation tool gives users the ability to access real-time information outside the office and working hours. It can also mean the application has a mobile version.

Before Buying a Performance Management Tool

After identifying the attributes needed in the performance management tool, it’s ideal to practice the following activities. Doing this will help avoid wasting funds and time on a software solution that doesn’t meet the company’s needs.

  • Cull-up and enquire about the features
  • Request for a free demo and trial
  • Read reviews on software listing sites
  • Seek consultations

Call-up And Enquire About the Features

Before investing in a new software program, it’s best to uncover what the product can do. They should be happy to walk you through the system and their features 

Request for a Free Demo and Trial

Ask for a demo version or a free trial and run a pilot process if possible. Most companies should be happy to allow you to test their software application for a specific period. It will help you select the one most suitable for your organization.

Also read: Have you set effective OKRs for your Customer Support Team

Read Reviews On Software Listing Sites

Visiting third-party websites and reading reviews from other customers is a great idea. Most of the employee management software applications available are present on software listing sites that have given customers the leeway to express their distinct experiences with the tool.

Seek Consultations

Consulting a team of experts can also help to simplify the process. The consultants can come in, look at the organization’s process and then recommend the performance software that will suit the organization’s needs.

In conclusion, purchasing performance management software will only help your organization be more productive and have more engaged employees. 

Want to know about Engagedly’s performance management software? Request for a live demo!

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10 Characteristics of the Most Effective Performance Management System

It was not long before organizations used manual methods to track employee performance. But, it was quite tedious and time-consuming, as it required managers to track the performance of multiple employees and provide a status report to senior management. Over the years, organizations have adapted to an employee performance management system that have had the capability to track employee performance annually. These systems also helped in overcoming the challenges of conventional systems like manual processing, manager bias, and time required for performance management. But there were still a lot of flaws that led to employee disengagement, loss of productivity, and reliance on the personal judgment of managers.

The introduction of advanced and performance-driven employee performance management systems has overhauled the entire process. Organizations now rely on systems that help in measuring employee performance at regular intervals and can provide innovative solutions to complex human resource challenges. An HR performance management system takes into consideration multiple factors of organizational performance and provides actionable insights for improvements. The system is scalable, organized, and offers multiple benefits, such as increased employee engagement, reduced turnover, reduced employee dissatisfaction, strategizing organizational goals, increased revenue, and focusing on DEI initiatives. 

Before we jump to the characteristics of employee performance management solutions, let us understand the problems that traditional management systems encounter.

Also Read: What is a performance management system?

Problems With the Traditional Performance Management System

The purpose of having a performance management system is to create a skilled and motivated workforce aligned with organizational goals. With the changing business dynamics, increased global competition, and green initiatives taken up by organizations, it has become imperative to have a diverse and inclusive workforce that is able to take up business challenges. 

The different types of performance management systems are helping organizations overcome the challenges they faced with traditional systems. Let’s discuss the problems faced by organizations.

Traditional Performance Management is Time Consuming

A report by CEB talks about the time-consuming process of performance review conducted by organizations annually. It shows that a manager spends an average of 210 hours a year in the process, and an employee devotes 40 hours. Cumulatively, it accounts for thousands of work hours that get wasted in the inefficient process of performance review. 

Also Read: 10 Best employee feedback tools to track performance

Ratings do not Reflect the Real Performance of Employees

The same report by CEB shows that 9 out of 10 employees are not satisfied with the performance review process. A majority of employees are dissatisfied with the ratings they get from their managers. Ratings are based on the most recent performance and don’t take into account the complete review of employee activities.

Talent Management Software

The Process is Laborious and Expensive

The countless number of hours spent in the performance review process adds to the lost revenue and administrative costs incurred in conducting the process. A report by Deloitte pointed out that their performance review process accounts for an investment of 1.8 million hours for the whole firm. Many small and medium-sized businesses are already overworked and need money for expansion and growth. Traditional performance management systems put extensive pressure on managing expenses and maintaining an efficient workforce.

Also Read: Impact of employee engagement on productivity

The Process Cannot Accurately Measure Performance

Seeing the inaccuracy and insufficiency in measuring employee performance, many organizations are starting to look for better performance management measures. A report by Gartner highlights that 81% of HR leaders are making changes to their performance management systems. Many leading business enterprises, like Accenture, Deloitte, Microsoft, Gap, and Adobe, have switched to an entirely new people management process that saves time and leads to better business results.

Characteristics of Performance Management System

A progressive performance management system is one that helps in motivating the employees and offers improvement plans to those with learning gaps. Moreover, it focuses on maintaining a higher engagement level and enhancing the skills of employees through frequent check-ins, constructive feedback, and accurate performance measurement. 

While selecting the best performance management system for the organization, it is important to understand the following characteristics of employee performance management solutions. These traits help in making a performance management process reliable, continuous, and data driven.

Also Read: 10 Best tools for employee goal setting

Fair and Accurate

A major issue with the traditional performance management system is the personal bias and perspectives of managers, which inhibits the fairness in the process. Fair and accurate performance review is done by involving multiple people in the review process of an employee.

A modern performance management system involves 360 degree feedback and reviews that incorporate feedback from multiple partners. Such a review process eliminates the personal bias and perspectives of managers and takes anonymous feedback from the concerned people.

The System Must be Efficient

An efficient performance appraisal system establishes and communicates goals and performance expectations to employees. It helps in reducing the manual efforts and overall time required to conduct the performance review process. Thereby providing accurate results for taking actions. 

Continuous, Flexible, and Intuitive

As organizations have started embracing automation, they look for performance management systems that can simplify complex tasks and are flexible enough to accommodate changing business dynamics. Performance management systems are continually evolving with technology. They offer intelligent insights based on the input data and solve multiple technical problems that is difficult for human resource managers to comprehend.

Also Read: 5 Features too look for in an OKR software

The System Must Focus on Employee Development

The purpose of implementing performance management tools is to enhance the performance of employees. It is achieved by understanding their current skill-set, challenges, engagement level, and opportunities, and matching them with the organizational objectives. 

An effective system focuses on imparting employee development plans for those employees that are lacking in optimum performance and rewarding those with exceptional performance. The system helps in gathering the employees’ information and creating a well-defined learning path for them. Even the measurement of employee development results and ROI is easier with an HR performance management system.

Learning and Development

Aligned Towards Organizational Goals

The performance of employees is directly linked with the achievement of business goals. If the workforce is not aligned to the organizational objectives then it becomes difficult to accomplish organizational goals . A performance management system aids in aligning the employee goals with organizational strategy. 

It can be achieved by setting goals that reflect the business strategy of the company. It requires taking every department and business unit into consideration while crafting the goals. Once the goals are designed, leaders have to cascade the goals down to every manager and employee in the organization. The last step is to review, monitor, and measure the success of these activities. 

Also Read: Reasons why goals setting is important

Aligned With Organizational Culture and Values

A report by Deloitte on core beliefs and culture found that “94% of executives and 88% of employees believe a distinct workplace culture is important to business success.” Organizational culture and values constitute the vision, mission, business strategy, and day-to-day interactions of employees with leaders, managers, and peers.

Employees are able to build a strong relationship and a sense of bonding with the organization when they feel like they are a part of the culture. A performance management system drives engagement, productivity, and development by undertaking multiple initiatives. It helps in building a closer relationship between an employer and their employees. It helps in creating a sense of purpose, achievement, and involvement among employees within the organization. 

The System Must Help With Goal Setting and Tracking

A performance management system helps in setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals. Research shows that setting goals in collaboration with employees increases accountability and also align individual goals with organizational goals. The check-in feature of the performance management system also helps in tracking the overall performance of team members. Thereby enhancing transparency in the review process.

Also Read: Benefits of 360 degree feedback

Integrates All Aspects of Employee Development

Employee development is a cumbersome process. It involves various parameters, like skill development, job rotation, job enrichment, mentoring and coaching, and lateral moves. As organizations grow in size, employee development gets more challenging. Thus, it requires a thorough analysis of the workforce and creating a plan for every employee. 

Using employee performance management solutions can simplify the tasks of employee analysis, learning path creation, execution, monitoring, review, and success measurement. Managers can use the performance review tools to quickly identify employee development opportunities and quickly start the process.

Customization, Security, and Integration

Integration with other HR technologies and tools is a key feature of performance review software. Because today’s businesses utilize various technologies and tools for employee management, it is important for software to seamlessly integrate and interact with other platforms to provide a better employee experience. 

Specific business demand are met by tailoring and customizing performance management software. It also ensures data security to meet global business standards.

Also Read: Common leadership challenges at workplace

Supports Learning Culture in Organization

Creating a learning environment contributes towards the growth of an organization. It helps in increasing employee productivity, engagement, ownership, and interpersonal relationships. Developing a learning culture is a long process. It requires collaboration from all the stakeholders of an organization. 

Organizations can shift toward a continuous learning process by adopting an intuitive performance management system. The focus should be on the following aspects:

  • Providing every employee with the opportunity to actively participate in their learning process
  • Rewarding and promoting continuous learning 
  • Providing resources and tools for employee learning and development
  • Encourage social learning within your organization.
  • Providing coaching and mentoring sessions to employees
  • Measuring the success of learning activities and reviewing the culture at intervals

By taking into account the above-discussed characteristics, organizations can select the most effective performance management system based on their business needs and dynamics. We hope this article has answered your queries regarding the traits of performance management systems. 

Employee Career Development

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Performance Appraisal Software: Is Low-Code / No-Code Development Right for You?

Deciding which performance appraisal software to integrate into your business is an important decision. You may be overwhelmed with how many options are on the market. Can you buy and use pre-made performance appraisal software, or will you need to build a new system? Many managers are struggling to understand the different types and features of each when they want to make a decision. A new generation of low-code and no-code software for performance appraisals has hit the market in recent years, and it is a game changer. Gartner estimates that by 2024, 65% or more of software creation will be using low-code. 

Also Read: Five Things Business Leaders Can Do To Create A Fantastic Work Culture


Low-code and no-code development is a platform where the development is made so simple that anyone can make software or app, even if they have little or no coding skills. This is a visual software development tactic that uses block icons with pre-installed code inside them. Users can drag and drop these blocks to develop and customize the application elements. 

Both low-code and no-code development used to be known as rapid application development (RAD). They both shorten the development time of applications by easily allowing developers to use duplicate and repetitive code. The difference between these two is that no-code only lets developers use the pre-set blocks of code, while low-code still has some flexibility for developers to make additions or modifications with written code. In short, no-code and low-code can help digitize and automate performance appraisal software development.


No-code development is perfect for businesses without any IT team or specialists. Using no code to develop performance appraisal software takes a fraction of the time and cost it would take to hire a development team and create one from scratch. Many companies only need the basic requirements of performance appraisal software without the extra effort of customization.

Also Read: Why You Need Performance Manager Software in 2021 

Small businesses with a small number of employees and different departments will find no-code performance appraisal software the easiest and fastest. This software will come pre-packaged with the most common and helpful applications. If you need something fast, that is ready to use right out of the box, your company should look into no-code.  


As your company grows and expands, you may find that the no-code software you have been using is missing many important features that your team now needs. Low-code has many of the same benefits as no-code but is less limited. A programmer can create those extra features and customizations you need. This still allows the programmer to utilize pre-set code blocks for most of the performance appraisal software and focus more time on perfecting the custom additions you want.

As the name implies, some coding knowledge is still needed for low-code development. Many companies have integrated an AI assistant to make this part even easier and faster. The AI assistant can help amateur coders navigate how to make changes to the software. It also might be necessary to use low-code instead of no-code development if your company already uses many different platforms or software, and you want these fully integrated into your performance appraisal software. 

Also Read: Why These 8 Top Companies Redefined Their Performance Management Systems

Low code is commonly used for task automation. With low code, it is easy to set up custom, automated tasks in the software. In your performance appraisal software, quickly set up an automated email to send out to employees when they miss an important deadline. You can set up rewards to automatically go out when an employee or team accomplishes a company goal in the system. These benefits of Low-code have made it the most productive option for performance appraisal software development. Forbes found that companies are 15 – 20% more productive when they use low-code platforms. This is because low-code platforms have higher speeds and scale than what manual code reviews and alterations can accomplish.


Low-code is more flexible than no-code platforms, but both will have limitations as a tradeoff for easy development. Low-code platforms can limit the integration to other third-party platforms or tools smoothly. No-code and low-code software often work best for smaller companies. The larger your company, the larger variety of data that needs to be processed differently inside the platform. Larger companies will likely need something more customizable than low-code to effectively categorize, filter, group, or label data. The pre-set code blocks in no-code and low-code software are targeted toward most standard business requirements in performance appraisal software. The more unique business your company and employees do, the less likely a low-code software will have all the features needed to properly measure employee performance.  

Want to know how Engagedly can make your performance management process flexible? Request for a live Demo!

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Engagedly Named Performance Management Leader in G2 Summer 2021 Awards, Fourth Quarter Running

G2 Summer 2021 Reports rank Engagedly as a Leader in Performance Management and Employee Engagement categories, as well as a multi-category Momentum Leader and High Performer.

Engagedly name G2 Leader in summer 2021

St. Louis, MO. June 24, 2021Engagedly, a leading provider of performance management solutions, is delighted to announce that the Summer 2021 Reports released by G2 recognizes Engagedly as a Performance Management and Employee Engagement Category Leader, as well as a multi-category Momentum Leader and High Performer.

G2 Reports help users find right-fit solutions for real-world business problems by highlighting top-rated solutions in the industry, chosen by customers. G2’s Grid Reports acknowledge products that have the most satisfied customers and largest market presence, where the Momentum Reports indicate products that are innovating and growing.

We are thrilled to be designated as a Category Leader again, as well as a Momentum Leader in this new report from G2. It further validates our people-centric approach to performance, engagement and development” – Sri Chellappa, President and Cofounder at Engagedly

The G2 Summer 2021 Reports rank Engagedly as a Leader in Performance Management, Employee Engagement, Mid-Market Asia Pacific Performance Management, India Performance Management, and Mid-Market Employee Engagement.

Engagedly stands as a Momentum Leader in the categories of Performance Management and Employee Engagement, and is also named a High Performer in Asia-Pacific Performance Management, Enterprise Performance Management, Mid-Market Performance Management, and Mid-Market Corporate Learning Management Systems.

About Engagedly

Engagedly is a fast-paced growth, award-winning performance management solution provider. Built upon best practices and decades of research, Engagedly’s People + Strategy platform is evolving performance management to drive successful organizational outcomes across the globe. Engagedly’s E3 unified platform combines the power of business strategy execution, talent enablement, and employee engagement into one easy-to-use software solution. Today, Engagedly serves more than 450 customers worldwide, empowering high performance organizations through people + strategy alignment. 

To know more about Engagedly, visit: https://engagedly.com/

About G2

G2 is the world’s largest tech marketplace where businesses can discover, review, and manage the technology they need to reach their potential. Today, more than 3M people visit G2 to read and write authentic reviews about thousands of software products and professional services. So far, we’ve published over 1,000,000 reviews and over 5 million visitors are helping millions of businesses make better buying decisions — and reach their full potential.

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Performance Management Software: Why Invest in it in 2024

We are all aware today that we can’t gauge, monitor, and measure work efficiently with the present performance management systems. Measuring employee performance is one of the crucial objectives for every organization and it directly affects their successes. As a result, on the global front, organizations are doing away with the traditional way of managing performance and are adopting the modern approach by using social performance management through credible performance management software. It is not only comprehensive but also consistent and balanced when compared to the traditional annual or half-yearly reviews.

Also Read: How Performance Management Changed in 2021

An effective performance management software can help you increase employee engagement, boost motivation, and facilitate two-way communication. Not only this, it helps in better management of employees and also increases the efficiency and accuracy of employee performance reviews.

While there are multiple reasons why you should invest in a good performance management software, we have some important ones listed out for you here:

Instant Feedback

You know how important feedback is to driving employee engagement and retention. But for it to be effective, it needs to be shared often and on the spot, be it positive or constructive. Performance management software makes sharing and receiving feedback a lot easier for both employees and managers. It allows for consistent and ongoing sharing of feedback on a real-time basis. Instead of waiting for the performance reviews, managers get to share feedback with their employees anytime and from anywhere. Similarly, it gives employees the flexibility to ask for feedback whenever required. Timely feedback helps good employees become better, and the ones who are not up to the mark, get a chance to improve.

As rightly iterated by Ken Blanchard (American Author) that, ‘Feedback is the breakfast of champions.’

Hence, performance management software not only facilitates two-way dialogue but also improves collaboration, which in turn improves employee engagement and retention.

Also Read: How Important Is Feedback In Today’s World?

Rewards and Recognition

Acknowledgement and recognition goes a long way for employees. Just like feedback, employees feel the constant need to be recognized for their work. Receiving timely acknowledgement boosts employee’s confidence, and they get validation for their work. A good way to keep your employees motivated and engaged continuously is to celebrate their wins with them.

Most of the performance management software in the market have a built-in employee recognition and rewards module, which allows you to recognize and reward your employees instantly for their work. For example, using tools like Engagedly, you can publicly praise or award points to your employees.

Also Read: Employee Rewards and Recognition For An Engaged Workforce

Goals and OKRs

Without some goals to achieve, where would we all be? Goal management is an integral process of all organizations. It helps employees to remain focussed on a common goal and in measuring the overall progress of the organization.

A performance management software enables employees and the organization to set clear, SMART, and dynamic goals for themselves. In addition to this, it allows you to cascade your goals and also align them with the organization’s goals. This helps every individual work towards some common goals and have the bigger picture in mind.


Millennial employees care for feedback a lot more than their predecessors. They not only look for feedback from their managers but peers as well.

The multi-rater feedback has already picked up pace in terms of popularity and is a common module of most performance management software. In this process, employees receive feedback from multiple audiences, which includes managers, peers, subordinates, vendors, and customers. Employees get an overall and balanced perspective of their performance. Moreover, it bridges the gap between what an employee perceives and what others think about the employee. It also allows employees to share feedback about their managers anonymously without the fear of getting subjugated.

We can say that multi-rater feedback not only helps in the self-awareness of the employees but also promotes an open culture in the organization.

Also Read: Know What Features To Look For In A 360 Feedback Software

Reduced bias and Transparency

Today many organizations are choosing to inculcate the transparency factor. And in the core of it all, is a good and efficient performance management tool.

Performance management software offers a great deal of visibility to everyone in the organization. Every stakeholder has a clear view of the progress of goals, feedback, and ongoing projects. Moreover, as performance management software logs in data consistently, it reduces the chance of any biases or favoritism towards an employee. This leads to creating a sense of trust and open culture in the organization.

Also Read: 8 Key Features To Look For In A Performance Management Tool

Reporting and Analytics

In today’s data-driven world where everything is predicted and explained in numbers and stats, where would we be without analytics?

Performance management software provides detailed insights about an employee’s performance in the form of graphs and charts. It helps employees to make decisions about their skills and developmental needs. Additionally, it helps managers and organizations to make compensation and promotion-related decisions during the time of annual or half-yearly performance reviews. Not only this, it also saves the employer’s time during the time of reviews as all the information regarding employee’s performance is already there in the performance management tool.

Given all the above benefits that you can draw with efficient performance management software, would you want to wait any longer? We guess not!

Are you planning to invest in performance management software? Then request for a live demo.

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Your Guide To Performance Management

In the past year, many things have changed, including the way employee performance is managed. With everything gone virtual, most organizations digitized their performance management efforts. They shifted from traditional performance management practices to using performance management software. Not only this, they adopted a more holistic and comprehensive approach to performance management. In our recent survey, we asked leaders from 5 key industries to report the degree of change for different performance management processes.

‘Overall, 20% of respondents were very satisfied with the changes they experienced related to performance management and people development processes’.

But choosing a performance management software for your organization is not easy; it is a daunting task. With so many options available, it can become a difficult decision for organizations. This article will act as a guide before you or your organization invest in a performance management tool.

Supports Real-Time Feedback

Having a continuous feedback module in your performance management tool ensures easy two-way communication between managers and employees. A feedback module helps employees to get performance-related feedback anywhere, anytime. It helps in team-building, improves productivity, and thereby drives engagement. Instant feedback motivates employees.

A basic feedback module should support the functionality to request, share, and track updates regarding the feedback.

Gamification and Rewards

Why should rewards and recognition be a part of your performance management tool? Rewards and recognition motivate employees to work and drive employee engagement and satisfaction. Thus it helps in increasing the overall productivity of the employee as well as the organization. A simple system where employees are awarded points and badges for the work done would do the trick.

Everyone likes appreciation and praise for their work. It always has a huge positive impact on the employee and boosts employee morale and confidence.

Engagedly’s public praise option allows employees to praise each other. It also allows managers and other leaders to award points to their employees for accomplishments. The praises and rewards are visible to everyone in the organization.

Also Read: Employee Rewards and Recognition For An Engaged Workforce

Goal Setting And Management

Goal Setting is one of the most important features of any performance management tool. So what makes goals important? It helps employees to stay focussed, keeps them engaged, and helps them measure success and productivity. Moreover, it motivates them, improves decision making and time management skills, promotes teamwork, and gives them direction.

An effective goals module would be one where employees can set, track, and manage SMART goals and OKRs. Employees should have the option to align their goals to business and team goals. They should be able to cascade their goals and add objectives and key results to their goals.

Also Read: 10 Things To Look For In A Goal Setting Software

360 Degree Performance Review

Multirater or 360 degree performance review has become an integral part of all performance management tools. Because of its unbiased nature, it has become popular with organizations worldwide. In a 360 degree review process, feedback is collected from everyone with whom the employee has a working relationship. The reviewers include managers, direct reports, peers, senior leadership, customers, vendors, etc. It helps to identify the training and development needs of the employee, improves self-awareness, enhances employee engagement, productivity, and retention.

Professional And Personal Development

Learning is an essential component of any performance management tool. This module aims at employee development, and improvement of employee skills, and helps in building the career trajectory of an employee. Having a learning module in your performance management tool helps the employee to know that organization cares for their development. As a result, employees will tend to stay with the organization for a longer time.

A typical learning module should enable employees to take up courses required to polish their skills. It should facilitate managers and HR to create and assign learning modules to their employees.

Also Read: Importance Of Continuous Feedback In The Post COVID Era

Employee Survey Tool

Surveys are an excellent way to gauge the current temperament of the organization. A simple survey can help us with information such as what employees are thinking, what they want to do, and how they feel. It also helps HR and managers to measure employee engagement of the organization and the team. The surveys also help employees to voice their opinions and concerns about the organization.

Any simple survey module of a performance management tool should allow easy creation of surveys and should also have common survey templates.

Supports Easy Integration With Other Softwares

Currently, there are multiple HR technologies in the market, so it has become essential for performance management tools to work seamlessly with each other. A quintessential performance management tool solution should integrate with other tools easily and share relevant information.

Engagedly currently integrates with ADP Marketplace, BambooHR, Google SSO, Namely, and Okta to share and access relevant information.

Also Read: The Benefits Of  Diversion and Inclusion In The Workplace

Employee Analytics and Insights Tool

An ideal performance management tool should provide managers and organizations with actionable reports and analytics about employees. It should provide an insight into the overall performance of an employee. A performance management tool should be able to provide real-time information about the performance, skills, and development needs of the employee. It can be in the form of simple charts and graphs which can be easily understood. These reports should guide the management to take appropriate actions to improve the performance of low performing employees.

Performance Reviews

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Performance Management Software : Here’s Why You Need It

Measuring employee performance is one of the crucial objectives for every organization. Globally, organizations have started ditching the traditional way of managing performance and are adopting the modern approach. They have moved away from traditional paper-based reviews to using performance management software.

Performance management software is known to increase employee engagement, boost motivation, and facilitate two-way communication. Not only this, it helps in better management of employees and land also increases the efficiency and accuracy of employee performance reviews.

If your organization still haven’t invested in a performance management software, read on to know why you should.

Feedback Module

Feedback is critical to driving employee engagement and retention. For feedback to be useful, it needs to be frequent and on the spot. Performance management software makes sharing and receiving feedback a lot easier for both the employees and managers. It allows for consistent and ongoing sharing of feedback on a real-time basis. Instead of waiting for the performance reviews, managers get to share feedback with their employees instantly. It gives employees the flexibility to ask for feedback whenever required. Timely feedback helps good employees become better and the ones not up to the mark to improve. Ken Blanchard (American Author) rightly says ‘feedback is the breakfast of champions.’

A performance management software not only facilitates two-way communication but also improves collaboration. It in turn improves employee engagement and retention.

Rewards, Recognition And Gamification

Like feedback, employees feel the constant need for recognition of their work. Receiving timely recognition boosts employee’s confidence, and they get validation for their work. Celebrating the wins of your employees keeps them motivated and engaged. Most of the performance management software that is available in the market have a built-in employee recognition and rewards module. They allow you to recognize and reward your employees instantly for their work.

For example, using tools like Engagedly, you can publicly praise or award points to your employees.

Also Read: Recognition At Work : The Virtual Edition

Goals And OKRs

Goal management is an important process for all organizations. It helps employees to stay focused on a common goal. Moreover, it helps in measuring the overall progress. A performance management software enables employees and the organization to set clear, SMART, and dynamic goals for themselves. In addition to this, it allows individuals to cascade their goals and also align them with the organization’s goals. It helps everyone to work towards a common goal.

Multirater Feedback

Employees not only love receiving feedback from their managers, but they love it from their peers too. 360 degree feedback is increasingly becoming popular among organizations and is a common module of most performance management software. In this process, employees receive feedback from multiple audiences, which includes managers, peers, subordinates, vendors, and customers. Employees get an overall and balanced perspective of their performance. Moreover, it bridges the gap between what an employee perceives and what others think about the employee. It also allows employees to share feedback about their managers anonymously without the fear of getting subjugated.

We can definitely say that 360 degree feedback not only helps in the self-awareness of the employees but also promotes an open culture in the organization.

Also Read: How To Conduct An Effective 360 Degree Feedback?

Improved Transparency & Reduced Bias

Performance management software offers a great deal of visibility to everyone in the organization. Every stakeholder has a clear view of the progress of goals, feedback, and ongoing projects. Moreover, as it logs in data consistently, it reduces the chance of any biases or favoritism towards an employee. It leads to creating a sense of trust and open culture in the organization.

Analytics and Insights

Performance management software provides detailed insights about an employee’s performance in the form of detailed graphs and charts. It helps employees to make decisions about their skills and developmental needs. Additionally, it helps managers and organizations to make compensation and promotion-related decisions during annual or half-yearly reviews. Not only this, but it also saves employer’s time during reviews as all the information is already there in the performance management software.

Do you want to know how Engagedly can help you with Performance Management? We have live demo for you.

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Performance Management Software: Two Mistakes To Avoid

There are many different kinds of performance management software out there in the market. But choosing the right kind of performance review software takes a lot of effort since there are quite a few things to consider before selecting software and we are faced with a sea of choices.

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Six Tips for Choosing the Right Performance Management Software

What are the components of a good performance management system? This is a good question to ask yourself before you embark on the hunt for performance management software.

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Organizations That Redefined Their Performance Management Systems

Many organizations are now understanding the importance of shifting from traditional performance reviews to more continuous and flexible performance management processes.

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What Should I Look For In My Performance Management Software?

Traditional performance review methods are deeply flawed. And if you recognize that, more power to you. However, before you blindly pick out performance management software on the basis of the fact that anything is better than traditional performance review methods, here are few things you need to think about.

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How To Implement A Performance Management Software In Your Organization?

In today’s workplace, performance evaluation and improvement have become vital. Every organization wants to be at it best and every manager wants their employees to be as effective as they can. But only few organizations carry out performance reviews effectively and taste success.

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Tips for Implementing Appraisal Management Software

For anyone who worked through the last three or four decades, the annual performance review, or performance appraisal review, was an event that inspired dread and anxiety. It was a call to the manager’s office where he reviewed your work performance based on your job description, often ranking you on a scale from 1 to 5 of how you met specific performance objectives.

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Engagedly – The Performance Management Software for Millennials

One of the most dominant groups in today’s workforce is Millennials. According to this study by Pew Research Centre, millenials have surpassed Gen Xers to become the largest labour force in the market. They form 53.5% of the workforce!

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