Stop Manual Reviews: Switch to Automated Performance Management

August 25, 2025

6 min read

Traditional performance reviews have become a burden for both managers and employees. They are long, stressful, and often fail to give real insights. Research shows that nearly 70% of employees feel their reviews don’t reflect their contributions, while managers spend over 200 hours a year stuck in paperwork and meetings that add little value.

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Quick Read

Summary generated by AI, reviewed for accuracy.

Manual performance reviews are slow, biased, and time-consuming. They drain managers with paperwork and leave employees feeling undervalued and frustrated.

Automated performance management makes reviews faster, fairer, and more transparent. With real-time feedback, clear goals, and accurate insights, it boosts trust, engagement, and business growth.

This outdated process does not just waste time, it harms trust, lowers morale, and even pushes high performers to disengage. Clearly, the old way is broken.

That’s where Automated Performance Management comes in. Instead of annual forms and biased ratings, automation delivers continuous feedback, fair evaluations, and data-driven insights. Companies adopting it report higher productivity and stronger employee retention.

The shift is simple but powerful: replace manual stress with smart automation. It is not just about making reviews faster it’s about building workplaces where people feel recognized, motivated, and ready to grow.

What Is Automated Performance Management?

Automated Performance Management is a smart way of using software to track, evaluate, and improve employee performance without relying on slow manual processes. With an automated performance management system, companies can set clear goals and see progress in real time, gather feedback regularly instead of waiting for the end of the year, and create reports that are fair and transparent. It also helps connect each employee’s growth with the overall strategy of the business, making reviews less about paperwork and more about real development.

By replacing outdated manual reviews with automation, organizations not only save time but also build trust and motivation among employees. Instead of waiting months for feedback, teams get continuous insights that keep them engaged and aligned with company goals.

Why Automated Performance Management System Matters

Manual performance reviews drain time, create bias, and often leave employees feeling overlooked. An automated performance management system solves these challenges by turning reviews into a smooth, continuous process. Instead of endless paperwork and yearly stress, managers get real-time insights, and employees receive fair feedback that truly reflects their contributions. The result is stronger trust, higher motivation, and a direct link between individual growth and business performance.

When employees see their progress tracked fairly and consistently, they feel more valued and motivated. At the same time, leaders gain confidence in making decisions backed by accurate data, creating a workplace where growth is measurable and trust is built every day.

Manual vs Automated Performance Management

Aspect	Manual Performance Management	Automated Performance Management
Time Spent	Managers spend weeks on paperwork and reviews	Reviews are faster with instant tracking and reporting
Fairness	Subjective, often biased, depends on memory	Data-driven, consistent, and transparent evaluations
Feedback Frequency	Once or twice a year, often too late to be useful	Continuous feedback that keeps employees engaged
Employee Experience	Stressful, unclear, and sometimes demotivating	Clear goals, fair reviews, and improved motivation
Manager’s Role	Focused on admin tasks instead of coaching	Focused on guiding and developing employees
Business Impact	Slows growth and reduces productivity	Drives efficiency, trust, and measurable performance
Data & Insights	Scattered notes, often incomplete or outdated	Centralized dashboards with real-time analytics
Scalability	Difficult to manage as teams grow	Easily adapts to large teams or multiple locations
Employee Development	Limited visibility on progress and skills	Clear growth paths with personalized recommendations
Consistency Across Teams	Varies by manager’s style, leading to uneven evaluations	Standardized criteria ensures fairness across the organization
Cost of Process	Hidden costs in wasted time and reduced productivity	Saves costs through efficiency and better retention
Transparency	Lack of clarity leaves employees uncertain about results	Clear performance metrics and accessible reports build trust

Top 10 Automated Performance Management Software

Here are the top 10 software platforms designed to transform how teams evaluate and grow performance through automation:

1. Performance Management 365

Performance Management 365 is a Microsoft-native solution built for organizations that want seamless performance automation without leaving their existing tools. It brings together reviews, feedback, goals, and analytics in one place fully integrated into Microsoft 365 apps like SharePoint, Teams, and Outlook. With its compliance-ready features and Power BI/Power Automate integrations, it offers a secure and scalable choice for businesses of all sizes.

Best For: Companies using Microsoft 365 (SMBs to Enterprises)

Key Features: Real-time reviews, OKRs/KRAs, 360° feedback, self-assessments, 1:1 meeting, dashboards, compliance (SOC2 Type II), analytics

Integrated With: SharePoint, Microsoft Teams, Outlook, Power Automate, Power BI

2. Engagedly

Engagedly is known for combining performance management with employee engagement. It uses AI-powered insights to drive recognition, align goals with company strategy, and create a culture of continuous feedback. The platform is especially strong in peer recognition and OKR alignment.

Best For: Organizations seeking AI-powered recognition and engagement

Key Features: OKR alignment, peer recognition, real-time feedback, AI insights

Integrated With: Slack, MS Teams, BambooHR, ADP

3. 15Five

15Five is designed to strengthen the manager–employee relationship with weekly check-ins and continuous performance conversations. Its simplicity makes it attractive for small to mid-sized businesses looking for quick adoption and better engagement.

Best For: Small to mid-sized businesses wanting simple feedback loops

Key Features: Weekly check-ins, performance tracking, engagement surveys, manager coaching

Integrated With: Slack, MS Teams, Jira, BambooHR

4. Leapsome

Leapsome combines performance reviews with learning and development. It’s ideal for companies that want to align OKRs with personal growth plans while building a feedback-rich culture. Its development-first approach makes it stand out.

Best For: Growth-focused companies that want development with performance

Key Features: OKRs, feedback cycles, learning modules, employee engagement surveys

Integrated With: MS Teams, Slack, BambooHR, Personio, Workday

5. PerformYard

PerformYard gives HR leaders flexibility with customizable workflows and review cycles. It focuses heavily on reporting and analytics, making it a strong choice for organizations that want tailored performance processes.

Best For: HR teams needing customizable workflows and analytics

Key Features: Custom reviews, goal tracking, feedback tools, performance analytics

Integrated With: BambooHR, ADP, Paylocity, MS Teams

5. PerformYard

Best For: HR teams needing customizable workflows and analytics

Key Features: Custom reviews, goal tracking, feedback tools, performance analytics

Integrated With: BambooHR, ADP, Paylocity, MS Teams

6. Betterworks

Betterworks is built for large enterprises that prioritize measurable outcomes and coaching. Its strong OKR and coaching framework helps align employee contributions with organizational goals.

Best For: Enterprises focusing on goal alignment and coaching

Key Features: OKRs, coaching frameworks, progress dashboards, insights

Integrated With: Workday, ADP, Salesforce, MS Teams

7. Lattice

Lattice offers a modern, unified approach by combining reviews, employee development, and engagement analytics. It’s popular for its clean interface and flexibility across industries.

Best For: Mid to large companies seeking an all-in-one solution

Key Features: Reviews, OKRs, employee growth plans, engagement analytics

Integrated With: Slack, MS Teams, BambooHR, ADP, Workday

8. 7Geese (Paycor)

7Geese, now part of Paycor, focuses on OKRs and continuous coaching. It helps align team goals with company objectives while encouraging manager-led coaching sessions.

Best For: Companies focusing on OKR-driven coaching

Key Features: OKRs, feedback cycles, coaching tools, team performance tracking

Integrated With: MS Teams, Slack, BambooHR, Paycor HR

9. ClearCompany

ClearCompany stands out by linking performance management with recruitment and workforce planning. It’s best for organizations that want a broader HR suite with performance baked in.

Best For: Businesses wanting performance linked to HR and hiring

Key Features: Reviews, goal alignment, succession planning, workforce planning

Integrated With: ADP, BambooHR, Paylocity, Workday

10. Peoplebox.ai

Peoplebox.ai provides a balance of OKRs, 1:1s, and reviews, making it a versatile option for fast-growing companies. It’s modern and user-friendly but doesn’t yet offer deep Microsoft integration.

Best For: Fast-growing companies needing flexible OKR + review tools

Key Features: OKRs, 1:1 meetings, reviews, engagement tools

Integrated With: Slack, MS Teams, BambooHR, Jira

Benefits of Automated Performance Review

Switching from manual reviews to automated performance reviews brings clear, measurable advantages for both employees and leaders. These benefits go beyond saving time they reshape how organizations build trust, motivate teams, and connect individual efforts to business success.

1. Faster Review Cycles

Manual reviews often drag on for weeks because managers need to gather notes, search through emails, and fill out long forms. Automated reviews simplify the process with pre-built templates, automatic reminders, and centralized dashboards. This allows managers to complete evaluations in minutes, ensuring reviews happen on schedule. Employees also get timely updates instead of waiting months for feedback.

2. Consistency Across the Organization

One of the biggest challenges in performance reviews is inconsistency. Some managers are too lenient, while others are overly strict. Automated performance reviews apply standardized criteria across the entire company, removing bias and guesswork. Every employee is judged fairly on the same scale, which builds trust and improves transparency in the workplace.

3. Real-Time Feedback Tracking

Traditional reviews focus only on what happened months ago, which is often too late for employees to correct mistakes. With automation, feedback is tracked in real time. If an employee misses a goal or exceeds expectations, the system captures it immediately. This ongoing loop helps employees adjust their performance on the spot and keeps them aligned with team and company goals.

4. Data-Backed Insights

Managers don’t have to rely on memory or subjective impressions anymore. Automated systems gather data from daily tasks, attendance, project outcomes, and even customer feedback. This creates a full picture of employee performance. Managers can use this data to recognize top performers, identify skill gaps, and design better training programs. Employees, in turn, appreciate the accuracy and fairness of data-backed decisions.

5. Improved Employee Trust

When reviews are based on actual data instead of personal opinions, employees feel more valued. Automated performance reviews eliminate favoritism and bias by ensuring that recognition is tied to measurable results. This creates an environment of fairness, where employees know their efforts won’t go unnoticed. Higher trust leads to better morale, stronger engagement, and improved loyalty to the organization.

6. Less Stress for Managers

For many managers, performance reviews are dreaded because they take so much time and energy. Automation removes the burden by sending reminders, generating reports automatically, and even offering suggested comments based on data. Instead of spending hours writing reviews, managers can focus on meaningful conversations with employees discussing growth opportunities and future goals.

7. Better Goal Alignment

One of the strongest advantages of automated reviews is the way they connect individual goals with company objectives. Employees can clearly see how their daily work impacts the bigger picture. For example, if the company aims to improve customer satisfaction, the system can link an employee’s customer service metrics directly to that target. This alignment motivates employees and keeps the whole organization moving in the same direction.

8. Higher Retention Rates

Unfair or outdated review processes often cause frustration and push employees to leave. Automated performance reviews elp stop this trend by creating a transparent, reliable, and motivating system. When employees feel recognized and treated fairly, they’re more likely to stay with the company. This reduces turnover costs, preserves institutional knowledge, and builds a stronger, more loyal workforce.

How Automated Performance Management Works

Automated performance management is more than just software it is a structured process that transforms how organizations set goals, track progress, and develop employees. Here’s how it works step by step:

1. Goal Tracking

Employees can set SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) directly in the system. These goals are updated in real time, allowing both employees and managers to monitor progress as it happens. Instead of waiting until the end of the year to measure success, the system shows whether individuals and teams are on track week by week. This visibility ensures everyone stays aligned with company objectives and helps prevent last-minute surprises.

2. Continuous Feedback Loops

Traditional reviews often rely on outdated feedback collected months after the work was completed. Automated systems fix this by enabling real-time feedback from managers, peers, and even cross-functional teams. Instant recognition for achievements keeps employees motivated, while quick feedback on challenges allows for faster improvement. These ongoing loops create a culture where feedback becomes part of daily work, not just an annual event.

3. Data Collection from Daily Workflows

One of the strongest advantages of automation is the ability to gather data passively from the tools employees already use. For example, the system can pull metrics from project management apps, attendance logs, customer service platforms, or sales dashboards. This eliminates the need for managers to manually compile information, giving them accurate, unbiased performance records that reflect day-to-day contributions.

4. Performance Insights with AI

Once the data is collected, advanced analytics and AI-driven insights come into play. The system highlights performance trends, strengths, and areas that need development. Managers can instantly see who is excelling, who may need support, and which teams are performing above or below expectations. These insights allow leaders to make smarter decisions, from assigning projects to designing targeted training programs.

5. Personalized Action Plans

Automated systems don’t just identify problems they suggest solutions. Based on performance data, the platform can recommend personalized action plans for each employee. This could include tailored learning resources, coaching sessions, or stretch assignments that align with career goals. Employees benefit from a clear roadmap for growth, while managers save time by relying on ready-made development suggestions.

6. Seamless Integration Across Tools

Most automated performance management systems integrate with collaboration platforms like Microsoft Teams or Outlook. This ensures that feedback, updates, and reminders are built into daily workflows, making adoption easier and reducing resistance from employees.

7. Continuous Improvement Cycle

Unlike traditional reviews that end after one meeting, automation creates a continuous improvement cycle. Goals are updated regularly, feedback flows consistently, insights keep managers informed, and action plans evolve as employees grow. This cycle ensures that performance management is always active, always relevant, and always driving better results for the organization.

Who Benefits Most?

Automated performance management doesn’t just make reviews easier it transforms how every level of the organization works. From HR leaders to executives, each group sees unique advantages.

HR Leaders

For HR leaders, manual reviews often mean endless paperwork, chasing managers for feedback, and struggling to keep data organized. With automation, all of that changes. Reviews become streamlined, records are stored in one system, and reminders go out automatically. This saves hours of administrative work and reduces human errors. Most importantly, HR can finally focus on what matters building better employee experiences, driving culture, and improving trust across the workforce.

Managers

Managers are often caught between coaching employees and managing day-to-day operations. Manual reviews make this even harder, forcing them to rely on memory or personal judgment. Automated systems give managers real insights backed by data, helping them recognize achievements and identify problems early. Instead of guessing, they can use dashboards and reports to guide meaningful conversations with employees. This builds credibility with their teams and allows managers to spend more time on leadership rather than paperwork.

Employees

For employees, performance reviews can feel unfair, biased, or disconnected from their actual work. Automation changes that by making the process transparent and continuous. Employees receive feedback regularly instead of once a year, and they can track their own progress against clear goals. This not only gives them confidence that their work is being recognized but also provides a clear path for career growth. When employees know how they are performing and what they need to improve, motivation and engagement rise.

Executives

Executives care about the bigger picture business performance, ROI, and long-term growth. Automated performance management delivers exactly that. With real-time analytics and performance trends, leaders can see how well the organization is performing at a glance. They can identify high performers, spot potential skill gaps, and measure the impact of talent on business results. The result? Faster decisions, smarter investments in people, and measurable productivity gains across the company.

Best Practices for Using Automated Performance Management Systems

Automating performance management works best when organizations follow clear practices that make adoption smooth and effective. Here are 10 proven strategies, expanded in detail:

1. Start Simple

The best way to introduce automation is to begin with the basics. Start by using the system for goal tracking and simple feedback loops. This helps managers and employees get familiar with the tool without feeling overwhelmed. Once everyone is comfortable, gradually roll out advanced features like AI-driven insights, predictive analytics, and detailed dashboards. By scaling step by step, adoption is smoother, and resistance is lower.

2. Train Managers

Managers play the most important role in making automated systems successful. They need to learn how to use the data effectively while still showing empathy. Automation can provide charts and scores, but it cannot replace the human touch. Training managers to blend data with personal coaching ensures that reviews are not only accurate but also meaningful. A well-trained manager can turn system insights into conversations that motivate employees.

3. Involve Employees

Automation works best when employees feel part of the process. Allow them to set their own goals, track progress, and give input within the system. When employees take ownership of their performance data, reviews stop feeling like a top-down judgment and instead become a collaborative growth tool. This sense of empowerment increases trust and engagement.

4. Review Continuously

The era of once-a-year reviews is over. By using automation, organizations can shift to quarterly or even monthly reviews. Continuous reviews ensure employees receive recognition when it matters most, not months later. They also help managers address issues before they grow into bigger problems. This regular cadence creates a culture of improvement and makes feedback a natural part of work.

5. Integrate Tools

Employees already spend much of their day in collaboration platforms like Microsoft Teams or Outlook. By integrating automated performance management systems with these tools, reviews become a part of the daily workflow. This reduces friction, increases adoption, and ensures that reminders, feedback, and progress updates don’t get lost in separate platforms. Integration also helps data flow smoothly across HR, project management, and reporting systems.

6. Use Clear Metrics

One of the biggest challenges in performance reviews is vague expectations. Automated systems allow organizations to define success with clear, measurable metrics for every role. For example, a sales employee may be measured on revenue closed, while a customer service employee may be evaluated on customer satisfaction scores. Transparent criteria eliminate confusion and bias, making employees feel fairly evaluated.

7. Encourage Peer Feedback

Performance should not only be judged by managers. Peer feedback adds a valuable perspective since co-workers often see contributions that managers may overlook. Automated systems make it easy to gather 360-degree feedback, giving employees a more complete picture of their strengths and areas for growth. Peer recognition also boosts morale, as employees feel valued by those they work with every day.

8. Keep It Transparent

Transparency builds trust. Automated systems should give employees access to their own performance dashboards so they can track progress in real time. When employees see how they’re doing and how their efforts align with company goals, they feel more motivated and accountable. Transparency also eliminates the shock factor of annual reviews, since performance is visible throughout the year.

9. Align Reviews with Development Plans

Performance reviews should not only highlight what went right or wrong they should guide the future. By linking reviews with learning resources, mentoring opportunities, or stretch assignments, employees get a clear growth path. Automation ensures that each review ends with actionable steps, so employees leave the conversation knowing exactly how to improve and advance in their careers.

10. Monitor and Improve the System

No system is perfect on the first try. Organizations should collect feedback from managers and employees about the review process and continuously improve how automation is applied. For example, if employees feel overwhelmed by too many review reminders, the system can be adjusted. Treating performance management as a living, evolving process ensures it stays effective, relevant, and trusted.

Conclusion

Manual performance reviews no longer meet the needs of today’s workplace. They are slow, often biased, and drain valuable time from both managers and employees.

Automated Performance Management changes that by making reviews faster, fairer, and more accurate. It gives managers real insights, provides employees with transparent recognition, and helps executives see measurable results. Companies adopting automation are already seeing stronger engagement, higher productivity, and sustainable growth proving that the future of performance management is automated.

Ready to see it in action? Book a Demo today and get a 14-day free trial to experience how automated performance management can transform the way your team works.

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Frequently Asked Questions

What is an automated performance management system?

An automated performance management system is software that takes the pain out of manual reviews. It automates goal tracking, feedback collection, and performance evaluations. By doing so, it saves time for managers, improves fairness across the team, and ensures that employees receive recognition based on real data instead of guesswork.

How is performance management automation different from manual reviews?

Performance management automation changes the review process completely. Instead of relying on once-a-year paperwork and biased ratings, an automated performance review provides real-time insights, continuous feedback, and consistent evaluation criteria. This makes the process fairer, faster, and more motivating for employees.

Will automation replace managers?

No. An automated performance management system is designed to support managers, not replace them. It provides accurate data, trends, and insights so managers can spend less time on admin tasks and more time on meaningful conversations, coaching, and guiding employees.

How much time can companies save?

Companies using performance management automation save a significant amount of time. Research shows that managers save over 210 hours annually with an automated performance review process. This time can instead be used for strategy, employee growth, and business priorities.

Is it suitable for small businesses?

Yes. Small and mid-sized companies often benefit the most from an automated performance management system. By cutting down admin work, it helps HR and managers focus on growing the business. It also improves employee retention since fair, transparent, and timely reviews make employees feel valued.