"When it comes to performance management, there are two other components that go hand in hand: some level of succession planning … and pay for performance," said Bob DelPonte, VP and general manager for Workforce Ready group, the company behind the Kronos HCM software suite. "Performance management, succession and compensation are really the three-legged stool; without each of those, you can't effectively measure the employee."
Many performance management systems also operate in close quarters with goal management modules, which allow managers to assign and track tasks through to completion. Performance management is also closely related to career and skill development, so managers can help bolster employees' strengths and shore up their weaknesses by offering educational opportunities.
When looking for the best performance management software, we took all of these features and factors into account:
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Pricing: Cost of the systems played a part in determining our best picks. Pricing was considered in tandem with the number of and robustness of each feature.
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Performance appraisals: The core of any performance management system is the appraisal or review process. We looked for the ability for multiple supervisors or managers to offer feedback on an ongoing basis, the ability of the employee to respond and interact, as well as the ability to incorporate objective or statistical information into subjective reviews.
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Customizability: Every system has a different level of customizable workflows. Some allow you to change a few parts of the review process, while others offer a level of control over much of the system. More customizability was viewed favorably, as every company has its own unique HR needs.
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Compensation management: Integrating a compensation management module was also considered alongside performance management, as these modules often work in tandem.
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Succession planning: Much like compensation management, a company's succession planning offerings were also considered, given these modules proximity to the performance management process.
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Career development: We considered career development and continued education opportunities available through the software. Systems which had robust methods of helping employee's grow and feel more engaged scored well in this criterion.
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Goal management and tracking: We also considered goal setting and tracking components of these systems. Performance reviews are made easier when objective measurements, such as progress toward specific work-related goals, and so those systems with comprehensive goal management components scored better.
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User feedback: We considered user feedback, positive and negative, from a variety of sources before making our final picks.
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Customer service and tech support: We engaged as a customer with our finalists' customer service departments and rated our overall experiences. Friendly, knowledgeable and forthcoming representatives earned a higher score for their company.
