Effective Tools to Improve Employee Performance: Techniques for Success

Ken Morgan | Posted on December 10, 2024 |

Managing employee performance is one of the biggest tasks leaders and managers handle. It includes setting goals, keeping track of progress, giving feedback, and making sure everyone’s work supports the company’s goals. It’s a lot to juggle, and it can quickly get overwhelming. According to a Gallup study, only 14% of employees strongly agree that their performance reviews actually motivate them to improve. Clearly, there’s room for improvement in how performance is managed.

Without the right tools, managing performance can be time-consuming and even frustrating, leading to unhappy employees and missed opportunities for growth. But here’s the good news—performance management tools can make this job a lot easier. These tools are built to simplify tasks, keep everything organized, and help managers and employees work better together.

What Are Performance Management Tools?

Performance management tools are software or platforms that help businesses oversee and improve employee performance. They support tasks such as setting goals, tracking progress, offering feedback, and reviewing results. These tools are built to make managing performance easier by streamlining processes and organizing everything in one place.

Common Features of Performance Management Tools

These are some of the most important features you’ll find:

Clear goal alignment ensures that employee goals directly connect with team or company objectives, helping everyone understand how their work contributes to overall success.
Custom reviews allow for tailored performance evaluations by designing questions and scoring systems that fit specific roles or teams, ensuring accurate and relevant feedback.
Regular feedback tools make it easy to offer real-time input or schedule one-on-one check-ins, keeping communication consistent and relationships strong.
Real-time progress tracking provides updates on goals as employees complete tasks, making it simple to monitor achievements and adjust priorities when needed.
Performance metrics analysis delivers useful insights through data visuals, charts, or reports, helping pinpoint trends or areas that need improvement.
Integration with HR platforms ensures the tool works smoothly with payroll systems, attendance trackers, or onboarding software, reducing repetitive work and saving time.

If your performance reviews often feel unorganized or inconsistent, it may be time to use performance management tools to bring structure and fairness to the process.

10 Tools to Improve Employee Performance

These are the 10 tools designed to make goal-setting, feedback, and performance tracking easier, helping you create a productive and engaged workforce.

1. KPI Fire

KPI Fire lets you tie employee goals to company objectives and track progress with key performance indicators (KPIs). Its simple dashboards make it easy to see performance trends and help teams stay focused. It’s priced between $9 to $15 per user each month, depending on the features you need, making it a good choice for small or medium-sized businesses that want goal alignment.

2. BambooHR

BambooHR is an all-in-one HR system that includes performance tracking. It supports setting goals, tracking feedback, and running performance reviews, while also working well with tools like payroll systems. Pricing starts at $6.19 per employee per month, but you’d need to check with them for exact costs. It’s great for companies that want an all-purpose HR tool.

3. Workday

Workday is a cloud-based platform that helps manage talent and track employee growth. It offers regular feedback, skill assessments, and clear analytics to improve performance. This tool is typically used by larger companies and has custom pricing starting at a few hundred dollars per month. Its powerful features are ideal for advanced workforce management.

4. 15Five

15Five focuses on weekly check-ins and open communication between managers and employees. You can track goals, gather feedback, and host one-on-one meetings. The basic plan starts at $4 per user per month. This tool works well for creating strong management connections and boosting workplace morale.

5. ClearCompany

ClearCompany is designed to align employees with company goals. It supports performance appraisals, sets clear objectives, and uses analytics to predict success. Prices begin at about $7 per user each month. Businesses looking for reliable tools to measure employee impact often find this a top choice.

6. Lattice

Lattice helps track goals, collect feedback, and gives employees guidance on career development. This tool starts at $11 per person monthly and is perfect for promoting consistent improvement and keeping employees on a growth path within the company.

7. Zoho People

Zoho People is a budget-friendly tool combining performance management with broader HR functions. You can set goals, run self-assessments, and collect 360-degree feedback. Starting at just $1 per user per month, it’s great for smaller businesses that want affordable yet effective solutions.

8. Betterworks

Betterworks focuses on keeping performance management simple. It offers tools for goal alignment, quick feedback, and performance tracking. Costs range from $8 to $12 per user monthly. This platform is ideal for organizations that value clear communication and goal visibility.

9. Trakstar

Trakstar simplifies performance reviews with customizable templates and tools for instant feedback and goal management. It costs $4,370 per year for up to 50 users, making it a practical choice for mid-sized businesses looking for comprehensive review systems.

10. Engagedly

Techniques for Using Performance Management Tools

To make the most out of performance management tools, it’s important to know how to use them effectively. Here are some techniques to help you maximize their potential and improve employee performance.

1. Set Clear Goals

Performance management tools can help employees set goals that are specific, measurable, and achievable with clear deadlines. This makes it easy for everyone to understand what’s expected and stay focused. Clear goals help teams work better together and achieve results more efficiently.

2. Schedule Regular Meetings

Use the tool to plan regular check-ins with employees or teams. These meetings are a great way to talk about progress, fix problems, and make changes if needed. Regular communication builds trust, keeps everyone on the same page, and helps solve issues before they grow.

3. Provide Feedback Right Away

Real-time feedback tools allow you to give comments as soon as work is done or when challenges come up. This keeps employees motivated, helps quickly correct mistakes, and promotes consistent learning and improvement.

4. Track Performance Automatically

Performance tracking tools save time by doing the work for you, like tracking progress or logging data. Automated tracking reduces errors and lets managers spend more time focusing on what’s important—helping teams improve and succeed.

5. Ask for Feedback from All Sides

With 360-degree feedback features, you can gather input from everyone involved—managers, coworkers, and even clients. This gives a full picture of how an employee is doing and ensures fair, balanced evaluations while highlighting growth areas.

6. Reward Great Performance

Use tools that help recognize good work through simple rewards like shout-outs, badges, or more formal incentives. Celebrating achievements lifts employee morale, makes them feel appreciated, and encourages them to keep performing well.

7. Use Data to Make Decisions

Analytics features in the tools can help you find top performers, spot areas that need improvement, and figure out training needs. With this data, you can make smarter choices for promotions, team projects, and employee development while keeping everything aligned with business goals.

How to Know If You Need Performance Management Tools

Do you find it hard to track employee progress or set clear goals? Are some tasks falling through the cracks? If so, performance management tools could help. They make it easier to share feedback, set goals, and monitor progress. They can improve teamwork and motivation by resolving these typical problems. Take a look at your workplace needs—if things feel unorganized or unclear, it might be time to try these tools.