How to Measure Employee Performance: 10 SaaS Tools You’ve Been Looking For

A high-performing team is the backbone of any thriving business. That is why it is critical to measure employee performance in the workplace. By understanding how your team is doing, you can identify strengths, address weaknesses, and keep everyone motivated – all leading to a more successful company. Ready to ditch the guesswork and unlock your team’s full potential? Let’s dive in!

What Is Employee Performance?

Employee performance refers to how well an individual carries out their job responsibilities and contributes to the organization’s goals. It’s a multifaceted concept that goes beyond simply completing assigned tasks.

Key aspects of employee performance include:

• Quality, efficiency, and effectiveness of work output
• Achieving sales revenue targets
• Maintaining high customer satisfaction
• Adhering to quality standards and attention to detail
• Attendance, punctuality, and time management
• Teamwork, collaboration, and communication skills

Why Measure Employee Performance?

Measuring employee performance is crucial for both businesses and employees, offering distinct benefits to each group.

Benefits for Businesses:

1. Improved productivity: Identify and replicate high-performance practices.
2. Better resource allocation: Direct investments towards areas with the highest impact.
3. Informed decision-making: Use data for promotions, training, and strategic planning.
4. Enhanced accountability: Ensure alignment with company goals and standards.
5. Increased competitiveness: Optimize operations and drive innovation through performance insights.

Benefits for Employees:

1. Clear expectations: Understand job requirements and performance standards.
2. Recognition: Receive acknowledgment for achievements and contributions.
3. Personal development: Identify areas for improvement and growth opportunities.
4. Fair treatment: Ensure objective evaluation and equal opportunities.
5. Increased engagement: Feel valued and connected to the company’s mission and success.

By measuring performance, organizations create a win-win scenario, fostering a culture of continuous improvement that benefits both the company and its workforce.

What are the Best Methods to Measure Employee Performance?

The best methods to measure employee performance include:

1. Goal Setting – Setting clear, measurable goals and objectives for employees to work towards, such as using the OKR (Objectives and Key Results) framework. This aligns employee efforts with company priorities.
2. Performance Evaluations – Conducting regular performance reviews where managers assess employees against predefined criteria. This can involve rating scales, skill gap analysis, and tracking quantifiable metrics like sales figures or customer satisfaction scores.
3. 360-Degree Feedback – Gathering feedback on an employee’s performance from their manager, peers, subordinates and sometimes customers. This provides a comprehensive, multi-stakeholder view.
4. Behaviorally Anchored Rating Scales (BARS) – Assessing employee behaviors and how they relate to job performance, using specific behavioral statements as anchors. This captures intangible aspects like teamwork and initiative.
5. Tracking Productivity and Quality – Measuring employee output, efficiency, and the quality of their work. This could include metrics like reports produced, tasks completed, or time taken to deliver projects.
6. Implementing “Sprints” – Assigning employees specific goals to achieve within a short, fixed time period (e.g. 5 days). This increases focus, accountability, and opportunities for reflection and improvement.

The key is to use a combination of these methods, focusing on objective metrics where possible, while also capturing qualitative aspects of performance.

How can Technology be Used to Measure Employee Performance?

Technology can be used to monitor employee performance through various tools and systems that track metrics such as productivity, quality of work, and adherence to deadlines. Examples include:

1. Time Tracking Software: Monitors hours worked and task completion times.
2. Project Management Tools: Tracks progress on tasks and projects, facilitating collaboration and transparency.
3. Performance Analytics Platforms: Utilizes data analytics to measure key performance indicators (KPIs) and trends over time.
4. Employee Monitoring Software: Monitors computer usage, internet activity, and keystrokes to assess productivity levels.
5. Feedback and Communication Apps: Facilitates real-time feedback and performance reviews between managers and employees.

These technologies enable organizations to gather objective data, enhance efficiency, provide timely feedback, and improve overall performance management processes.

10 SaaS Tools to Monitor & Measure Employee Performance

Here’s a comprehensive list of 10 popular SaaS solutions, each with its unique strengths to empower your team and unlock their full potential.

1. Workday Performance Management

• Workday offers robust performance management solutions including continuous feedback, goal alignment, and detailed analytics, ideal for integrating with broader HR functions.
  • Focus: Continuous feedback, goal alignment, development opportunities.
  • Price: Custom pricing based on company size and needs.
  • Features: Performance reviews, 360-degree feedback, coaching tools, goal management, reporting & analytics.
  • Pros: Integrates with Workday HCM for seamless data flow, strong analytics and reporting, fosters a culture of continuous feedback.
  • Cons: Can be expensive for smaller companies, complex interface for some users.

2. BambooHR Performance

• Known for its user-friendly interface, BambooHR provides basic performance management features such as reviews, goal setting, and feedback tools, tailored for small to medium-sized businesses.
  • Focus: Simple, user-friendly performance reviews for small and medium businesses.
  • Price: Starts at $5/user/month.
  • Features: Performance reviews, goal setting, feedback tools, reporting.
  • Pros: Affordable, easy to use, and good for basic performance management needs.
  • Cons: Limited features compared to more comprehensive tools, may not scale well for larger companies.

3. Lattice Performance Management

• Lattice emphasizes modern performance management with features like continuous feedback, goal setting, and employee development, designed to enhance engagement and productivity.
  • Focus: Modern performance management with a focus on employee engagement.
  • Price: Starts at $5/user/month.
  • Features: Performance reviews, continuous feedback, goal setting, recognition tools, employee development.
  • Pros: User-friendly interface, strong focus on employee engagement, good value for the price.
  • Cons: May lack some advanced features of higher-priced tools, limited customization options.

4. ClearCompany Performance Management

• ClearCompany offers intuitive performance reviews, goal setting, and peer feedback tools to foster a feedback-oriented culture, suitable for various integration needs.
  • Focus: Performance reviews, goal setting, development plans, employee engagement.
  • Price: Starts at $6/user/month.
  • Features: Performance reviews, goal setting, check-ins, peer feedback, reporting & analytics.
  • Pros: Easy to use, good for building a culture of feedback, offers various integrations.
  • Cons: Limited customization options, may not be suitable for complex performance management needs.

5. PeopleGoal

• Specializing in OKR-based goal setting, PeopleGoal facilitates performance reviews, progress tracking, and alignment tools, optimizing goal management processes.
  • Focus: Performance management with a focus on OKRs (Objectives and Key Results).
  • Price: Starts at $7/user/month.
  • Features: OKR goal setting, performance reviews, progress tracking, alignment tools, reporting.
  • Pros: Strong OKR functionality, good for companies that use OKRs for goal setting, promotes goal alignment.
  • Cons: Limited features outside of OKRs, may not be a good fit for companies that don’t use OKRs.

6. Hibob Performance Management

• Hibob supports performance reviews, continuous feedback, and development discussions with features like 1-on-1 meetings and recognition, promoting a culture of continuous improvement.
  • Focus: Performance reviews, continuous feedback, 1-on-1 meetings, employee development.
  • Price: Starts at $8/user/month.
  • Features: Performance reviews, feedback tools, goal setting, check-ins, recognition, reporting & analytics.
  • Pros: User-friendly interface, good for fostering a culture of continuous feedback, offers features for both performance reviews and development discussions.
  • Cons: May lack some advanced customization options for complex performance needs.

7. PerformYard

• PerformYard focuses on simplicity with features like performance reviews, continuous feedback, and goal setting, aimed at enhancing employee engagement and recognition.
  • Focus: Simple performance management with a focus on employee engagement.
  • Price: Starts at $4/user/month.
  • Features: Performance reviews, continuous feedback, goal setting, recognition tools, employee development tracking.
  • Pros: Affordable, easy to use, good for building a culture of recognition and feedback.
  • Cons: May lack some advanced features of higher-priced tools, limited customization options.

8. Gusto Performance Management

• Integrated with Gusto payroll, Gusto Performance Management simplifies HR processes with features such as performance reviews and feedback tools, ideal for existing Gusto users.
  • Focus: Integrated performance management for businesses already using Gusto for payroll and HR.
  • Price: Included with Gusto HR Plus plan (starts at $8/user/month).
  • Features: Performance reviews, feedback tools, goal setting, 1-on-1 check-ins, reporting.
  • Pros: Seamless integration with Gusto payroll and HR, simplifies HR processes, affordable for existing Gusto users.
  • Cons: Limited features compared to standalone performance management tools, may not be suitable for companies that don’t use Gusto.

9. Kenexa Performance Management

• Tailored for large enterprises, Kenexa from IBM offers comprehensive performance management with 360-degree feedback, succession planning, and robust analytics for advanced talent management.
  • Focus: Comprehensive performance management for large enterprises.
  • Price: Custom pricing based on company size and needs.
  • Features: Performance reviews, 360-degree feedback, goal management, succession planning, learning & development tools, robust reporting & analytics.
  • Pros: Highly scalable with advanced features, strong analytics and reporting, comprehensive talent management suite.
  • Cons: Expensive, complex for smaller companies, may require significant IT support.

10. Zoho People Performance

• Zoho People Performance provides a comprehensive suite for performance management, offering tools for reviews, goal management, and development tracking, suited for diverse organizational needs.
  • Focus: Affordable performance management with features for all company sizes.
  • Price: Starts at $1/user/month.
  • Features: Performance reviews, feedback tools, goal setting, 1-on-1 meetings, recognition tools, reporting.
  • Pros: Very affordable, good range of features for the price, easy to use and implement.
  • Cons: May lack some advanced features of higher-priced tools, limited customization options.

Please note: Pricing is based on publicly available information and may vary depending on specific plans and features chosen.

Selecting the Right SaaS Tool for Your Business

Choosing the right SaaS tool to measure employee performance is crucial for maximizing your team’s potential and driving business success. Here’s a brief overview of key aspects to consider:

Key Features to Consider:

When evaluating SaaS tools, look for comprehensive features that align with your performance management strategy.

• Goal setting and tracking capabilities ensure alignment between individual and organizational objectives.
• Robust feedback mechanisms, including 360-degree reviews, provide a holistic view of employee performance.
• Recognition and reward systems can boost motivation, while advanced analytics offer actionable insights.
• Seamless integration with existing HR systems and mobile accessibility is essential for user adoption and convenience.

Considerations for Businesses:

• When selecting a tool, consider your company’s specific needs based on size and industry.
• Evaluate your budget constraints and the tool’s pricing model.
• Assess the user-friendliness of the interface and the training required for effective implementation.
• Importantly, ensure the tool meets your data security requirements and complies with relevant regulations.

By carefully weighing these factors, you can select a SaaS tool that not only measures employee performance effectively but also aligns with your business goals and operational needs.

Don’t waste time on generic software reviews!

With StaQ.ai, you can explore a curated selection of top-tier SaaS products, each offering free trials to help you make informed decisions. Our user-friendly platform makes it easy to compare features, pricing, and customer reviews, empowering you to find the software that will streamline your operations, boost productivity, and drive growth. 

Discover your perfect match today at StaQ.ai, the ultimate destination for SaaS success!