Six Tips for Choosing the Right Performance Management Software

by Srikant Chellappa Sep 19,2018

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

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.

Performance management is not just about reviews. In fact, performance reviews make up a very small portion of the entire process. Good performance management includes continuous feedback, consistent goals and objectives, frequent communication and learning and development. The software you are looking for should have these modules and additionally, if these modules can be integrated with each other, that’s even better. 

Here are Engagedly’s six tips for choosing the right performance management software!

What is the set-up like?

Choosing a cloud-based application or software that must be installed manually does make a difference when it comes to performance management software. Cloud-based software applications do not need any set-up. All they need is a device and a connection to the internet for users to access them. On the other hand, software applications which need to be installed required a set-up process that can be short or lengthy depending on the size of the application. We recommend using a cloud-based software application. 

Ease of use

We cannot stress how important it is that you pick a performance management software that is easy to use. The main problem with traditional performance management processes is that they can get tedious and cumbersome. When you begin using a software application and find it even more tedious than your previous performance process, you’ve already lost the battle. Do not just request demos and download brochures and make a decision. Do your homework and request a free trial. And if you have the option of doing so, take the application for a test run with a control group.

If your software of choice stymies users and causes more confusion than it’s worth, you know you need to look for something different.

Also read: From Paper-based Performance Reviews To Performance Appraisal Software

Does it align with what you are looking for?

When choosing performance management software, it is absolutely vital to have a software that aligns with your own expectations about performance management. It helps if you have a list of what you would like to change in your performance management process or what you want to introduce to it.

If your list of requirements includes, a flexible and customizable performance module, integration with other secondary modules, a goals module, then you should look for software that fits those needs to a T. Because it is absolutely possible for software applications to be great in every which way and yet be completely unsuitable for your own organization and performance management culture.


Looking to figure out how to fix performance management at your organization?

Download our guide to Progressive Performance Management!

Look for overall flexibility

For a software to be useful, you need to be able to customize it and serve the needs of the end users better. Performance management software that lends themselves to flexibility and customization is what you should look for. Because software makes it easier for organizations to enact change when it comes to the review process. If they can be tweaked to suit your needs, that’s how you know the software is going to be a good fit.

Cost and effectiveness

Performance management software is only effective when in addition to the software is the right match for your organization; you also receive excellent customer support from the vendor. Good software providers are willing to meet organizations halfway and ease the transition process from paper to software or software to software as much as possible. Though it might be explicitly stated, take the liberty to check with service providers if they are willing to help you with onboarding, support, technical issues etc and to what extent they provide customer support.

Budgetary concerns

We cannot stress this enough but do not blow your budget on software you cannot afford or vice versa, skip out on great software in order to save costs. The beauty of the HR software market is that there is something suitable for everyone in it. Enterprise-class software may not be the best fit for you, if you are a small-sized business, no matter how many bells and whistles it has. Similarly, simple performance management software may not suit the needs of an organization that has some very specific needs and requirements.

We hope these tips will help you choose performance management software that is best suited to your needs! If you are interested in knowing how Engagedly deals with performance management, request a demo to find out!

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Srikant Chellappa
CEO & Co-Founder of Engagedly

Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2024.

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