Performance Management Software for Small Business HR Teams

Choosing a performance management software for small businesses can be a daunting and overwhelming task. How do you make the right choice?

Implementing performance management systems in your organization can increase productivity, employee satisfaction, and communication. But how do you select performance management software for your small business?

Choosing the right software for your performance management process is vital. If you get it right, you can drastically reduce the overhead of the whole process. There are a couple of rules you should follow when deciding upon the right performance management software for your organization.

One of the first steps is to review your current system, whether it be manual or automated. Note down what aspects it is lacking and draw solutions in the form of requirements for the new system you are looking for. This is a great place to start:

performance management software for small business

Learn out how to implement new HR software here


What features do you require in your system? Are you looking for a platform to cover every aspect of the performance cycle such as goal setting, 360-degree feedback, 1:1s, performance appraisal and performance review process, development plans, training courses etc. Or are you looking to focus specifically on one area such as continuous feedback?

A good performance management platform will offer all these areas with the ability to disable features if you are looking to build a system with more of a focus on a specific area such as goal setting. Therefore, you need to assess your requirements and draw that list up against the platforms feature lists that you are researching.

Performance Management Software - Requirements

User Interface:

Considering all employees within your organization will be using the platform, and some have greater computer skills than others, it may be worth considering how user friendly the interface is. If this is the first digital system you are putting in place, perhaps start with something simple that has the option to build on the system as employees become more comfortable with the platform. Additionally, you will want to find a solution that is easily accessible to your worforce at any time they might need it, thus you are likely to be in a search for a cloub-based software solution.

Performance Management Software - User Interface

Reporting Capabilities

At the end of the day, performance management software for small companies will need to include real-time reporting. This will enable managers to gauge where their employees stand, and who may need to be paid more attention with assistance or rewards.

Performance Management Software - reporting capabilities


Are you looking to integrate the software with any other systems? For instance, one integration that can streamline the performance management process is an integration with Slack, where you can have the basic chat function alongside completing tasks. Thus you have performance management alongside communication, in the place where people do their work.

Performance Management Software - integrations

Free Trial

Does the software provider offer a free trial of the product? This is a vital area, as sometimes having a demo does not give you enough information, or it can gloss over certain areas that you may need to pay more attention to. In reality, the only way to truly understand a platform is to have first hand experience and to take it for a test drive.

Performance Management Software - free trial


Does the hr software provider offer support, and is that support sufficient for you your needs? Depending on the size of the performance management platform provider's organization, there is a differing support available within the market, with some offering 24/7 support, and others more in line with their own timezones. Nonetheless, this is a question you should ask.

Performance Management Software - support


Finally, one of the bigger players in your performance management platform decision is the cost. One of the first steps in your research should be to determine your budget. This will allow you to eliminate a fair few software providers that are outside of your budgetary constraints.

Performance Management Software - cost

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