8 essential performance management software features

What is performance management software?

Performance management software is a valuable HR tool, used to monitor and report on employee performance on an ongoing basis. Common performance management software features are designed to track individual team members’ contribution to organisational goals, support professional development, and provide managers with accurate data to recognise top-performing people. The features of performance management systems vary depending on the specific type of software. 

Performance management software benefits

Using performance management software can deliver multiple benefits for management and team members alike, including:

• Company-wide goal alignment: the goal setting features of performance management software enable alignment between individual team members’ goals and wider business objectives for firm-wide cohesion
• Encourages accountability: using software to monitor performance promotes accountability. The system will record people’s SMART goals, clearly setting out expectations and encouraging individuals to take responsibility for their performance
• Increase motivation and productivity: the recognition and rewards features of performance management software can motivate people to achieve and surpass their goals. This can enhance productivity, benefiting your business financially too
• Identify and address skill gaps: employers can quickly identify skill gaps using a performance management system, so prompt action can be taken to address these. This supports employees’ professional development, making them feel valued by the business
• Inform data-driven decisions: the tracking and reporting features of performance management software provide HR and management with accurate, up-to-date data on employee performance to inform decisions on promotions and salary increases
• Improve job satisfaction: by providing accurate insights into performance to inform recognition and rewards, this type of software can help to boost job satisfaction, impacting staff retention 

8 top features of performance management software

From goal tracking to real-time feedback and from employee onboarding support to performance reporting, discover the key features of performance management software.

1. Goal setting and alignment

Goal setting is an essential performance management software feature, allowing managers to set and track goals, ensuring these are aligned with wider organisational objectives. This helps to ensure everyone is motivated to work towards a common purpose. 

Goals, objectives and key results (OKRs) should be set in line with the SMART framework, which states goals should be:

• Smart
• Measurable
• Achieveable
• Relevant
• Time-bound

Talos360’s performance management software provides managers with visibility on company and individual goals, setting clear direction for your people, while encouraging ownership and accountability. 

Why it’s an essential feature: goal setting functionality provides clear direction, so everyone is aware of what’s expected of them, encouraging firm-wide accountability. 

Best practice advice: make sure everyone has visibility of their goals via the performance management system, as this can enhance motivation and engagement.

2. 360-degree feedback

The best performance management platforms will facilitate continuous, 360-degree feedback. This feedback can be gathered at any time and recorded via the software, so it’s visible during performance reviews and check-ins, keeping a continuous focus on performance from all sides. Gathering feedback from multiple sources helps to eliminate bias from performance-related decisions.

Why it’s an essential feature: 360-degree feedback improves people’s awareness of their strengths and weaknesses, by providing a full picture of their performance from multiple perspectives.

Best practice advice: when reporting feedback to colleagues, make sure it is delivered anonymously, so they aren’t aware of who has said what about them. This encourages honesty from those asked for their feedback, and keeps the process fair and balanced.

3. Employee development

Another top performance management software feature to look for is the ability to integrate employee development plans into the overall performance management process. With Talos360, managers can use the system to set employee development goals, track skills gaps, and identify training needs. This data can then be used to inform promotions, salary increases, or other rewards.

Why it’s an essential feature: it encourages a culture of continuous professional development, benefiting job satisfaction and impacting retention.

Best practice advice: people’s career development goals need to be SMART to ensure progress can be tracked accurately. Managers should also use the reporting insights generated by the performance management system to inform future employee training initiatives. 

4. Workflow automation

Automation and AI-powered functionality within performance management software delivers many benefits. It helps to save time and resources, and streamline workflows, enhancing efficiency and productivity as a result. Automated features within Talos360 include:

• Automatically enrol people into the relevant performance management process
• Send automated reminders at performance review periods
• Sync with existing HR systems to update records automatically
• AI-powered notetaking in performance reviews to remove the administrative burden

Why it’s an essential feature: automation streamlines repetitive and time-consuming admin, enhancing efficiency and freeing up HR time to spend on more people-focused tasks. Automation collects data in real time, providing management with more accurate, up-to-date performance insights.

Best practice advice: invest time in training managers and team members in how to use automated performance management system features to reduce the risk of inconsistencies and errors.

5. Recognition and rewards

Common performance management software features can play a key role in supporting employee engagement initiatives, including recognition and reward programmes. Integrating these features alongside performance management makes people feel valued when they reach their goals, promoting motivation and long-term retention. Talos360’s solution incorporates features that encourage recognition to be shared in internal channels, which can have a motivating impact on the wider team, benefiting workplace culture and staff morale.

Why it’s an essential feature: an employee recognition and rewards programme can boost motivation, increase productivity, and support staff retention. 

Best practice advice: try to tailor rewards to each employee to show them that they’re valued and help them feel appreciated. Meanwhile, encouraging peer-to-peer recognition within the performance management system helps to create a supportive culture, where people feel valued by their colleagues.

6. Employee onboarding support

Employee onboarding functionality is one of the must-have performance management software features for supporting retention from the moment someone is hired. Features to support this within Talos360’s performance management system include:

• New starter onboarding templates
• Initial goal setting
• Check-ins and probation reviews
• Ability to track employees’ first few months with your business

Why it’s an essential feature: onboarding features provide a complete picture of each individual’s progress during their time with the company. HR can use this data to inform decisions regarding promotions or pay rises.

Best practice advice: ask new employees for their feedback on the onboarding process once they’re settled, and use their insights to refine and develop the experience for future hires.

7. Performance reporting

Reporting is naturally one of the most important performance management software features, with Talos360’s solution offering both standard and custom reports that provide the insights most relevant to your business goals. Accurate performance management reporting and analytics are essential for informing data-driven decisions.

Why it’s an essential feature: accurate reporting is crucial to identify areas for improvement, and individuals who deserve recognition. It also shows trends over time and across teams, so managers can spot areas that require development across the organisation.

Best practice advice: align the performance metrics reported on with wider business goals to ensure reports are relevant. Ask for feedback from managers and employees on the effectiveness of performance reporting to ensure everyone can view the data that’s important to them.

8. HRIS integration

Connect your performance management software with your human resources information system (HRIS) and other existing tools for a smooth transition. This allows you to embed performance management employee data into your HR analytics tools, such as Power BI, ensuring you have all you need in one centralised dashboard. Talos360’s system also uses single sign-on for added convenience. 

Why it’s an essential feature: integration with HRIS and other tools creates a seamless, centralised platform that provides a full view of employees’ performance, history and goals to influence data-driven performance-related decisions.

Best practice advice: make sure data within the HRIS and performance management software is regularly audited and updated for relevancy, efficiency and continued compliance. Ensure HR and managers receive training on how to use the integrated system to increase its effectiveness and minimise errors.

How to choose performance management software

Every organisation will have specific goals for its performance management software, and with so many features offered, it can be hard to choose a system. To help your selection, consider the following points:

• User-friendly interface: ease of use shouldn’t be underestimated when researching performance management software features. Choose a platform that offers an intuitive, user-friendly interface for minimal disruption
• Customisation: Talos360’s performance management solution includes customisable dashboards and reporting, so you can tailor views to the metrics that matter to your organisation most
• Data security: look for performance management software features that will keep your business compliant with GDPR and other legislation to protect sensitive data and avoid penalties for non-compliance
• Mobile access: if it’s important for you to provide remote, on-the-go access to your performance management system, look for software that enables secure, mobile access
• Scalability: consider whether the software will be able to grow with your business over the long term. Choosing a performance management system that can scale with you first time will help to prevent future upheaval
• Customer support: Talos360 assigns a dedicated customer success manager and an account manager to businesses using our performance management software, providing tailored support and advice, whenever you need it

Utilise key performance management software features with Talos360

Transform your organisation’s performance management process with feature-packed performance management software from Talos360. Experience the benefits of using a centralised platform to manage employee performance that seamlessly integrates with your existing HR systems.

Key features include:

• Manage performance reviews and check-ins
• Gather real-time feedback
• Private and public recognition
• Personal development plans
• Goal setting
• Ratings and calibration
• Automated reporting

Start experiencing these coveted performance management software features with Talos360. Contact us today to book a demo and get started.