How do I choose the best software for tracking employee performance?

Consider the size of your team, your review cycle, and whether your team is remote or hybrid. The best software for tracking employee performance should integrate with your existing tools, offer real-time feedback, and be easy to implement.

Best Software for Tracking Employees Performance

June 21, 2025
11:22 pm

6 min read

Keeping track of employee performance is no longer a nice to have. It is a must for teams that want to grow work better and stay on the right path.

People want to know how they are doing. Managers want clear updates without the stress. The right software makes this easy for both. In 2025 smart teams are using simple tools to build trust give feedback and reach goals faster.

A report says only 2 out of 10 employees feel that their performance is managed in a way that helps them do better. That means most people are working without clear support.

Another study from SHRM found that 74 percent of companies using performance tracking software saw higher productivity. Take control of your team’s success in 2025 with top performance tracking software. Drive growth, enhance engagement, and simplify reviews all in one tool.

What Is Employee Performance Tracking Software

Best Software for tracking employees Performance helps teams understand how each person is doing. It displays progress, work quality, goals in one place. Managers can identify who needs help, who is excelling, and where the team is heading.

This software provides real-time updates. It shows clear tasks, feedback, scores. Teams no longer need to wait for yearly reviews. They can grow step by step, week by week, or month by month.

The best software for tracking employees performance keeps things simple. It helps without being intrusive. It works for both small and large teams, ensuring everyone stays aligned.

Why Performance Tracking Matters in 2025

Work has changed. It’s time to upgrade how you track performance boost growth and simplify reviews with the best tools in 2025. People now work from homes offices or even while traveling. Teams are spread across cities and countries. Goals change fast. That is why tracking performance in real time is not just helpful. It is necessary.

In 2025 feedback is more than a task. It is what keeps people aligned and motivated. When you use the right tool teams feel more supported, and leaders get the updates they need.

Here’s why it matters more than ever: the right tools can drive growth, simplify reviews, and keep your team engaged in 2025:

People want feedback that helps
Employees want to know how they are doing not just once a year but every week or month.

Leaders need to see progress fast
Managers need clear updates so they can support their teams in the right way.

HR needs simple tools that save time
Manual reviews take hours. Good software makes it quick and easy.

Teams want to feel seen and valued
When people feel noticed they work better and stay longer.

Trust and growth are top priorities
In a fast world people need tools that build both.

Top Benefits of Using Performance Tracking Tools

Good tools bring value fast. From the first day they help teams stay on track work with clarity and grow with confidence. Managers save time. HR gets better control. Employees feel more valued and less confused.

Here are the top benefits explained in simple points:
Clear direction
Employees know what task to start with what goals matter most and what success looks like each day. This helps reduce confusion and makes work feel more focused.

Regular feedback
Teams do not have to wait for months to know how they are doing. They get updates often which keeps them on track and helps them feel supported in real time.

Fewer mistakes
When people understand what is expected they make fewer errors. This builds trust between teams and helps save time on rework.

Time saved
Managers spend less time sending emails or calling for updates. Reviews and feedback happen fast through one simple system.

Better planning
Leaders can see which goals are falling behind and take action early. It becomes easier to plan training or shift tasks to avoid delays.

Higher morale
When people feel seen and appreciated, they stay motivated and perform at their best. A quick message or a small comment can boost confidence and improve output.

Easy reporting
HR teams can get reports in seconds. No need to search through old files or ask every manager for updates.

Supports remote work
Whether your team is in one place or ten tools help everyone stay connected. Clear goals and updates bring teams together even from far away.

More control
Leaders can view all progress in one dashboard. This gives them full control without needing to ask each person how they are doing.

Faster decisions
With fresh data and live updates leaders can act quickly. They do not wait for long reviews or reports to make changes.

Best Software for Tracking Employees Performance in 2025

Here are top tools that help track and improve performance. Each one fits different needs but all help teams grow.

1. Performance Management 365
Performance Management 365 is a Microsoft-based tool made for teams who want simple goal tracking and smart review workflows. It fits well with Microsoft 365 and helps managers give feedback without switching tools.

Best for – Teams using Microsoft 365
Top feature – Goal setting and review workflows

This tool works inside Microsoft 365. It helps teams set goals share feedback and run reviews. It keeps data safe and works where your team already is.

2. Lattice
Lattice is a performance management platform designed to foster employee growth through continuous feedback and goal setting. It helps mid-sized teams align personal development with company objectives.
Best for – Mid size companies

Top feature – One on one tracking

Lattice helps teams grow with clear feedback and growth paths. It is simple to use and good for teams that value career talks.

3. 15Five
15Five is a performance management tool that focuses on employee engagement through regular check-ins and feedback. It helps teams stay aligned with weekly surveys and continuous communication.

Best for – Feedback focused teams

Top feature – Weekly check ins

15Five lets teams stay close with short updates each week. It helps build trust and spot issues early.

4. Perform Yard
Perform Yard offers a flexible and powerful performance management platform designed to help companies build custom review processes that truly reflect their needs. With its fully customizable review cycles and goal tracking features, it empowers HR teams to streamline evaluations while delivering meaningful feedback.
Best for – Custom review cycles

Top feature – Flexible setup

This tool lets you build your own review plans. It works for teams that want control and structure.

5. BambooHR
BambooHR simplifies the performance management process for small and medium-sized businesses with its intuitive interface and powerful features. With easy goal setting, feedback tools, and automated reminders, it helps teams stay aligned, engaged, and on track for continuous improvement.
Best for – Small to mid-size teams

Top feature – Easy to use

BambooHR stands out with its sleek design and user-friendly tools that make managing performance a breeze. It tracks goals feedback and growth with less setup time.

6. Leapsome
Leapsome seamlessly connects performance reviews with employee development in one easy-to-use platform. Designed for fast-growing organizations, it supports teams with personalized learning paths, goal tracking, and feedback tools that drive long-term growth and employee satisfaction.
Best for – Growth and learning

Top feature – Linked learning paths

Leapsome blends goals and learning. Teams can track reviews and link them to skill building.

7. Culture Amp
Culture Amp is a data-driven performance management solution that enables organizations to foster a high-performing culture through regular feedback and deep employee insights. Its research-backed tools help companies create a more engaged, transparent, and motivated workforce, aligned with core values and goals.
Best for – Culture based teams

Top feature – Science backed templates

Culture Amp makes feedback fair and clear. It uses research to shape reviews that help people grow.

8. Effy.ai
Effy.ai brings the power of artificial intelligence to performance management by streamlining reviews with smart suggestions and insights. Perfect for fast-paced teams, it simplifies performance tracking, enabling managers to make data-driven decisions and provide timely, impactful feedback to employees.
Best for – Fast moving teams

Top feature – AI based insights

Effy.ai gives smart prompts and review questions. It works well for startups and tech teams.

9. PeopleGoal
PeopleGoal is a performance management platform built for teams that require customization and flexibility. With its drag-and-drop form builder and modular features, it helps businesses create tailored workflows for performance reviews, goal tracking, and employee feedback to ensure maximum engagement and growth.
Best for – Custom workflows

Top feature – Drag and drop forms

PeopleGoal lets you build your own review flows. It is great for teams with special needs.

10. Trakstar
Trakstar takes the complexity out of performance reviews with its automated reminders, intuitive interface, and real-time tracking features. Designed to help businesses of all sizes stay organized, it ensures timely evaluations, continuous feedback, and data-driven insights to drive employee success and organizational growth.

Best for – Automation

Top feature – Review alerts and reports

Trak star keeps reviews on track. It sends reminders and helps managers follow up on time.

Common Features for Best Software for Tracking employees

The best tools are not always the ones with the most features. They are the ones that work well for your team every day. When picking performance tracking software make sure it covers the basics that help your people stay on track and feel supported.

Here are the key features you should focus on to make the most of your performance review software.

Goal setting and tracking
The tool should let you set goals for each person or team. It should also help you track progress and check what is done.

Real time feedback
Your team should get updates fast. Feedback should happen while the work is still fresh not weeks later.

Simple dashboards
Everyone should be able to see what they need at a glance. A great dashboard brings together tasks, goals, and updates all in one place, making it easy to stay on track.

Smart reports and charts
Reports should be simple to read and quick to generate, so you can make decisions without the hassle. Managers and HR should get clear views of team performance without extra steps.

Custom review forms
You should be able to change the review forms to fit your team your roles and your process.

Mobile access
A great tool should work seamlessly on phones and tablets, so you can stay connected and manage performance on the go. This helps remote teams or people on the move stay connected.

Integration with tools like Microsoft 365
The tool should work with what you already use. That makes it easy to keep everything in one flow.

Strong data privacy
The software should protect team data with care. Make sure it follows privacy rules and keeps your info safe.

These features help teams stay clear connected and focused. A tool that covers these basics will save time reduce stress and help your people do their best work.

Benefits of Performance Tracking

Best software for tracking employees performance is not just about numbers. It helps teams grow build trust and stay focused. With the right software people feel clearer more supported and more driven to succeed.

Better clarity
When people know their exact goals they can stay focused and take the right steps. Everyone understands what is expected from them. This clears up any confusion and provides a clearer direction for everyday tasks

Faster feedback
Quick updates mean that teams do not have to wait for monthly or yearly reviews. Managers can give feedback right when it is needed. This helps solve problems early and supports learning in real time.

Improved focus
With clear goals and task lists employees spend less time wondering what to do next. They can focus their energy on the right priorities. That keeps the whole team moving in the same direction.

Higher motivation
People feel good when their work is noticed. They feel proud when they reach their goals. Regular check ins help them stay engaged and show that their effort matters.

Smarter planning
Managers can use the data to spot skill gaps or track delays. They can plan training assign tasks better and avoid last minute surprises. This makes the team stronger and more prepared.

Less stress
When everyone can see what is happening there is less back and forth. No more endless emails or guessing. Performance tracking gives a simple view of what is done and what needs attention.

Stronger results
Teams that use performance tools reach their goals faster. “They help make smarter decisions and catch mistakes before they become problems. Clear progress helps them stay ahead and keep improving over time.

How to Choose the Right Performance Tracking Software

Not every tool fits every team. The best software for tracking employee’s performance is the one that matches how your team works every day. Before you pick a tool take a moment to think about what your team really needs.

Ask yourself these simple questions:

How big is your team
Small teams need tools that are quick to set up and easy to use. Large teams may need features like bulk actions reporting and user roles.

Do you work remote or hybrid
If your team works from many locations choose a tool that supports mobile access cloud storage and live updates.

How often do you review performance
Some tools work best for yearly reviews. Others support weekly or monthly check ins. Pick one that matches your review cycle.

What other tools do you use now
Make sure the new software connects well with your current tools like Microsoft 365 Slack or your HR system.

What is your budget
Some tools offer all features but cost more. Others are simple low-cost and still effective. Pick what gives value for your needs.

If your team is small go for a tool that is light fast and simple. If your team is large choose one with detailed reports alerts and strong data safety. What matters most is finding a tool that makes your day easier and helps your people grow.

Conclusion

Teams grow when feedback is clear, and goals are tracked. A simple tool can change how people work and feel each day.

Pick the software that fits your needs. Start small or go big but take that first step.

Book a Demo
Want to see how it works Try a free demo of Performance Management 365. See how it fits your team goals and review needs. No pressure. Just a simple look at what is possible.