8 Best performance management systems in 2025

A company always needs to maintain employee retention while reducing churn. But it can be hard for managers to maintain an employee development strategy manually. This includes planning career paths, matching personal goals with company goals, and giving rewards for good work.

Performance management software can help. It makes the review process structured, efficient, and focused on clear results, which helps enhance employee engagement. This software also ensures your team understands their goals, takes responsibility for meeting them, and keeps learning new skills.

In this article, we will review eight of the best performance management systems and show you how to choose the right one for you. All review scores are based on G2 review ratings. 

1. SAP SuccessFactors 

• Review Rating: 4.1/5 [based on 1,342 reviews]
• Best For: All types of companies that want to address all HR needs through one platform. 

SAP SuccessFactors can help connect the daily work of every employee to the overall business goals. It provides a clear way for managers to make sure everyone understands what is expected of them.

Instead of relying on a single annual review, SuccessFactors encourages continuous conversation feedback throughout the year. Managers can have regular check-ins, and employees can receive helpful input from their peers and colleagues. This gives a much fuller picture of their contributions. 

The tool also creates a more supportive work environment where people can feel motivated to do their best work.

Key Features

• Workforce planning: This tool can forecast workforce needs and align them with business strategies.
• Global compliance: Managers can ensure compliance with local labor laws and regulations across multiple regions.
• Learning & development: Employees can benefit from an integrated learning management system that supports their growth.

2. PerformYard Performance Management 

• Review Rating: 4.7/5 [based on 1,124 reviews]
• Best For: Businesses that want a system that prioritizes flexible performance reviews and goal tracking.

PerformYard is a cloud tool that helps employees and their managers focus on performance and growth.

It gives employees a clear place to set and track their goals, so they always know what they are working towards. The platform also makes feedback a regular part of work. Instead of waiting for an annual review, employees can give and receive feedback from their managers and peers at any time. This helps them get a well-rounded view of their performance.

The system is designed to be simple and easy to use. Employees can easily see their progress on goals and review their performance history. This helps them understand where they are succeeding and where they can focus on improving.

Key Features

• Workflow customization: Users can get flexible workflows that adapt to the unique processes of your organization.
• One-on-one tools: This system can schedule, document and track one-on-one meetings.
• Continuous feedback: Employees can benefit from ongoing feedback outside of formal review cycles.

3. Leapsome 

• Review Rating: 4.8/5 [based on 2,041 reviews]
• Best For: Companies that need to combine performance management and employee development.

Leapsome is a people management tool that helps with performance and growth at work.

It provides a clear path for career advancement by identifying the skills employees need to develop. To help them learn these skills, the platform offers personalized courses that they can complete at their own pace.

This system also encourages open communication. Team members can easily give and receive feedback and track their goals to see how their work contributes to the company’s success. This tool also includes a helpful AI assistant that can answer questions and suggest new learning opportunities. 

Key Features

• Pulse surveys: Users get lightweight surveys to measure employee sentiment in real time.
• Competency frameworks: This tool offers predefined and customizable frameworks to develop employee skills.
• Integration with learning content: This system can connect with external learning platforms to enhance employee development.

4. Culture Amp 

• Review Rating: 4.5/5 [based on 1,468 reviews]
• Best For: Managers who want to improve employee engagement and workplace culture.

Culture Amp is an HR platform that helps companies build a better place to work. It gives them tools to listen to their employees and understand how to improve the organizational culture.

For an employee, this means they have a clear way to share their voice. Through surveys and feedback tools, they can offer their thoughts on what’s working and what could be better. The company then uses this feedback to make positive changes.

The platform also helps employees with their career goals. It provides tools for them to create employee development plans and advance their professional growth.

Key Features

• Diversity & inclusion analytics: This tool offers data-driven insights that support the creation of a more inclusive workplace.
• Turnover prediction: Businesses can use predictive analytics to identify employees at risk of leaving.
• Leadership development: This system offers resources to support the growth of organizational leaders.

5. 15Five 

• Review Rating: 4.6/5 [based on 1,791 reviews]
• Best For: Teams that require a tool that allows for continuous feedback and aligns reviews with OKRs. 

15Five is a digital tool that helps employees and managers work better together. It focuses on improving performance and creating a positive work environment.

Through weekly check-ins and tools for 1-on-1 meetings, employees always know how they are doing. This means there are no surprises when it comes to performance reviews.

Employees receive consistent feedback, which helps them develop their skills. For instance, a feature called ‘High Fives’ enables team members to recognize one another for good work.

With 15Five, employees can also see how their individual goals connect to the company’s larger objectives. This helps their work feel more meaningful. 

Key Features

• Weekly check-ins: 15Five offers a system for tracking employee progress and addressing challenges in real-time.
• 1-on-1s: This system can facilitate performance review conversations between managers and employees.
• Engagement surveys: Employees can fill in regular surveys that provide a clear picture of employee satisfaction.

6. ClearCompany 

• Review Rating: 4.6/5 [based on 475 reviews]
• Best For: Users who value hiring, engaging, and retaining top talent. 

ClearCompany is a cloud-native platform that handles all of your company’s HR needs. It brings everything from hiring and onboarding to performance reviews into one place.

This improves employee morale, especially when you first join, as the onboarding process is easy to follow. The platform also supports a user’s long-term growth by providing tools for setting goals and getting recognized for hard work. 

Key Features

• Performance management: This system offers a suite of tools designed to monitor and improve employee performance.
• Applicant tracking: Businesses can manage recruitment processes from start to finish using ClearCompany.
• Onboarding: You can simplify the onboarding experience for new hires through this tool.

7. Workleap 

• Review Rating: 4.3/5 [based on 1,071 reviews]
• Best For: Organizations that want to improve workforce efficiency and streamline operations. 

Workleap is a tool designed to improve the employee experience at work. 

When an employee first joins the company, Workleap makes the onboarding process easy to follow. The platform also helps employees plan their career paths by identifying their current skills and suggesting ways to develop new ones. It provides on-the-job training to help them reach their goals.

Through quick surveys and feedback tools, Workleap ensures employees’ voices are heard and helps them feel more connected to their work. It also makes it easy for employees to recognize their colleagues for their contributions. This creates a more positive and supportive environment for everyone.

Key Features

• Communication tools: This platform contains tools that promote collaboration and strengthen workplace connections.
• Recognition measures: Managers can use this system to celebrate employee achievements and contributions.
• Surveys: This tool makes it easy to gather employee feedback and insights.

8. Engagedly

• Review Rating: 4.3/5 [based on 538 reviews]
• Best For: Companies that need to enhance employee motivation with recognition and development tools.

Engagedly is an employee performance platform that helps organizations improve performance and support career growth. It allows employees to perform better and feel more connected to the company.

With this tool, users get personal advice to help them develop new skills and advance. The platform makes it easy to set clear goals and receive regular feedback so managers know how you’re doing. Features like employee recognition help them feel valued and motivated.

The system is designed to be simple and easy to use, fitting naturally into an employee’s daily routine. It also improves communication, helping everyone stay on the same page. Users can easily track their progress and take charge of their professional journey.

Key Features

• 360-degree feedback: A comprehensive feedback system that collects input from multiple sources.
• Employee recognition: This system offers tools to reward employee contributions to enhance morale.
• OKRs: Your organization gets a goal alignment framework that ensures objectives are met.

How to choose the right performance management systems for your business 

Opting for your ideal performance management system matters because it aligns employee efforts with business goals. 

A sound system also creates clarity and accountability in the workplace and recognizes achievements to retain top talent.

Take a look at this comparison table to help you pick the best performance management tool for you: 

Tool	Best for	Key features	Privacy
SAP SuccessFactors	Enterprise-level HR management	Performance management, learning & development, and succession planning.	Enterprise-grade security, GDPR compliance, and role-based access control.
Leapsome	Continuous performance management	OKRs, 360-degree feedback, learning modules, and employee engagement surveys.	GDPR compliance, ISO 27001 certification, and data encryption.
15Five	Employee engagement and goal setting	Weekly check-ins, OKRs, 1-on-1s, and engagement surveys.	GDPR compliance, SOC 2 certification, and secure data storage.
PerformYard	Small to mid-sized businesses	Goal tracking, performance, and customizable workflows.	Data encryption, GDPR compliance, and secure cloud storage.
Culture Amp	Employee engagement and feedback	Engagement surveys, performance reviews, and diversity & inclusion analytics.	GDPR compliance, SOC 2 certification, and anonymized feedback.
Clear Company	Talent management and recruitment	Applicant tracking, onboarding, performance management, and employee engagement.	GDPR compliance, secure cloud storage, and role-based access.
Engagedly	Performance and learning management	OKRs, 360-degree feedback, learning management, and employee recognition.	GDPR compliance, secure cloud storage, and role-based access.
Workleap	Employee experience and engagement	Surveys, recognition, rewards, and communication tools.	GDPR compliance, secure data handling, and anonymized feedback.

Improve employee retention and save costs with the best performance management systems  

Performance management systems help your team and business thrive. They connect each employee’s goals with the company’s larger vision, ensuring everyone is working together.

With tools for real-time feedback and goal tracking, these systems keep your team engaged and focused. They build a culture where everyone is encouraged to grow and improve.

These systems are flexible enough to suit any business, whether big or small. By choosing the right one, you can enhance employee productivity and maintain your company’s agility.