9 Best Performance Management Software In India [2025 Guide]

Regular performance reviews have various advantages. For starters, they eliminate inefficiencies in your workforce, helping you build a driven, engaged, and productive one. A survey also found that 66% of companies with a solid performance management model were able to boost their annual productivity significantly!  

By 2031, India’s performance management software market is expected to reach a whopping $7.47 billion! This is because organizations are realizing the need to revamp traditional models and rather invest heavily in new technologies that help create more employee-friendly and meaningful performance management programs. 

However, since many performance management tools are available today, it has also become naturally challenging for organizations to identify the right one. 

But we’re here to help you! This blog will give you insights into the top 9 performance management tools tailored for Indian organizations in 2025. Read on! 

What Is Performance Management Software?

Performance management software helps organizations and employees set and track goals easily. As tasks become more complex, these tools provide the flexibility required for teams and individuals to define, adjust, and monitor their goals. They also support running performance reviews at defined intervals—quarterly, half-yearly, or annually. 

More importantly, these tools enable a continuous feedback process. Employees no longer have to wait for formal review periods to receive or request feedback. Instead, managers and peers can provide real-time insights, helping employees course-correct and achieve their objectives effectively. 

These tools also allow organizations to assess employee performance using standard models like the bell curve or the 9-box framework, offering deeper insights into individual contributions and areas for improvement. 

With Gen Z and millennials making up a significant portion of the workforce, companies must have a reliable and scalable performance management software as it helps with learning and career development of a young workforce. 

Here  are some key reasons why good performance management software is crucial for Indian businesses 

1. Streamlines Workforce Management

Managing a varied workforce can be difficult. Managers handing a big team may find it impossible to address each employee’s unique struggles and pain points. This is where performance management tools come into play. They streamline KPI tracking and progress management, enabling managers to keep track of individual performance and tailor feedback and coaching accordingly. 

2. Enhances Productivity

The ability to view and track organizational, team and individual goals keeps your workforce aligned with the targets and helps them track their progress. Bu ensuring that their activities contribute towards a goal, organizations can boost employee productivity.

3. Boosts Engagement

Engaged employees are critical for the success of any business, Performance management tools allows employees to see how their work is contributing to the overall success of the organization. This can boost engagement significantly and help organizations get more value out of their workforce.   

4. Facilitates Data-Driven Decision-Making

Whether it’s identifying employees who need training or rewarding the ones who’ve outperformed, you need to have data that supplements your decision. Performance management software provides that. It offers detailed insights into every employee’s productivity, efficiency, skill gaps, etc., helping you make informed, data-driven decisions.  

What Are the Top Features to Look for in Performance Management Software?

If you’ve never used performance management software before, or if you are looking for a change, selecting the right tool can seem challenging. Which is why we can compiled a a quick checklist of the features you should assess before picking a performance management tool for your organization: 

1. Goal Setting and Tracking

The primary role of any performance management software is to set goals for an employee and let you track them. By allowing employees to set and track goals, you can understand where your teams stand with respect to overall goals, and what progress you are making on these goals.  

2. Continuous Feedback Mechanisms

Performance management doesn’t end with setting and tracking KPIs. Feedback is needed to promote tangible change and development. So, a good tool will also allow you to provide constructive feedback to your employees as ratings, comments, etc. 

3. Performance Reviews and Appraisals

Conducting performance reviews can be time-consuming, especially if your organization is large. However, a good performance management tool will streamline this process and allow you to create a structured annual/bi-annual/quarterly/monthly process for performance reviews. 

4. Analytics and Reporting

Accurate data and insights are important to determine  emplyees eligible for promotion, bonuses, resource allocation, and more. Look for tools that gives you the best reports and insights.  

5. Third-Party Integrations

Look for a tool that seamlessly integrates with other HR tools and software in your workflow, like payroll systems, time-tracking tools, etc., to ensure everything is streamlined and cohesive.

9 Best Performance Management Software in India

Here is the list of the best performance software in India you can get in 2025:

1. PeopleStrong

Effective performance management is key to organizational success, and PeopleStrong makes it easier than ever.  

With comprehensive features, PeopleStrong helps you set clear goals, track progress, and provide continuous feedback. It’s designed to streamline the entire performance management process, ensuring you get the best out of your team while developing a culture of growth and accountability. 

PeopleStrong covers all the essential steps in performance management—goal setting, tracking, and feedback. Unlike many other tools that focus only on setting OKRs, PeopleStrong provides multiple goal frameworks like MBOs, KPIs, and SMART Goals, giving you the flexibility to choose the approach that works best for your team. It also allows you to track and share goals in real time, making sure everyone stays aligned and motivated. 

To encourage ongoing development, PeopleStrong offers 360-degree reviews, continuous feedback, and upward feedback mechanisms. It also  provides one-on-one feedback sessions and employee-centric reviews, helping to create a more holistic approach to performance management. 

PeopleStrong offers a seamless, agile solution to optimize every aspect of performance management and drive better results for your organization. 

Top features: 

• Set, track, and align individual and team goals with organizational objectives using OKRs. 
• Gather performance insights from peers, managers, and team members to ensure a holistic evaluation of employees. 
• Shift from traditional annual reviews to continuous feedback, with regular performance check-ins and real-time updates. 
• Measure employee satisfaction and engagement to identify areas for improvement and build a motivated workforce. 
• Evaluate employees against custom competency frameworks to align skills with organizational needs and development goals. 
• Identify high-potential employees and prepare them for future leadership roles with strategic succession planning tools. 
• Link performance evaluations with personalized learning and development plans to boost growth opportunities. 
• Tailor feedback templates and performance rating scales to meet the specific needs of teams and roles within the organization. 

2. SAP SuccessFactors

SAP SuccessFactors is a leading performance management tool designed to address various performance management needs. It helps businesses set performance KPIs, plan sales strategies, track progress, and create incentive compensation plans for high performers. 

Additionally, the tool uses AI-driven recommendations to support employee development, ensuring continuous growth and alignment with organizational objectives. 

Top features: 

• Comprehensive talent management system with integrated learning and performance. 
• Continuous performance feedback for ongoing employee development. 
• Advanced analytics and reporting for real-time performance insights. 

3. Oracle HCM

Oracle HCM is cloud-based performance management software ideal for mid to large-sized enterprises. It simplifies performance management for organizations with a global workforce. The tool promotes regular performance reviews, rewards, and skill enhancement. 

Additionally, Oracle HCM offers AI-driven coaching, providing employees with tailored support for career and skill development. This makes it a great choice for companies looking to nurture talent and boost overall performance. 

Top features: 

• Integrated learning and development programs linked to performance. 
• OKRs and goal management to drive performance alignment. 
• Continuous feedback loop for real-time growth tracking. 

4. Workday

Workday uses AI to streamline HR management and improve performance management. It automates routine HR tasks while analysing organizational needs and suggesting improvements. 

Workday is a solid option for performance management for managers who aim to enhance team productivity. Features like timesheets and absence management help track employee activity, ensuring maximum efficiency and a better work environment. 

Top features: 

• Unified platform for performance, learning, and talent management. 
• Customizable performance review templates tailored to team needs. 
• Continuous performance coaching with actionable insights for improvement. 

5. Profit.co

Profit.co is an AI-driven performance management tool designed to streamline the management of OKRs. It helps track goals, reviews employee performance, and provides 360-degree feedback. 

Additionally, Profit.co supports talent and succession development, offering a comprehensive approach to performance management. This makes it an effective solution for organizations looking to implement structured performance growth and development strategies. 

Top features: 

• OKR management system for setting and tracking strategic goals. 
• Visual dashboards for easy goal and performance tracking. 
• Employee development programs are directly linked to performance feedback. 

6. Lattice

Lattice makes performance management efficient by automating key tasks like feedback collection and performance reviews. It offers potent reporting and analytics to help businesses identify operational inefficiencies. 

With its engaging features, Lattice allows managers to monitor and improve employee performance regularly. The tool’s ease of use and implementation make it a strong contender for organizations looking to prioritize continuous performance improvements. 

Top features: 

• Continuous feedback culture to enable growth in real-time. 
• Customizable performance review templates to suit your needs. 
• Career development tools for aligning goals with employee aspirations. 

7. BambooHR

BambooHR is another customizable performance management tool. It allows you to tailor performance management processes to your needs, including  reviews, feedback, or goal-setting.  

These comprehensive features help set goals, evaluate productivity, and provide appraisals—all in one platform. This flexibility makes BambooHR a powerful tool for organizations seeking personalized performance management solutions. 

Top features: 

• Goal tracking functionality for individual and team progress. 
• Continuous feedback mechanism for real-time improvements. 
• Recognition system to boost employee engagement and motivation. 

8. HiBob

HiBob specializes in providing 360-degree reviews, giving employees a comprehensive view of their performance. Managers, peers, and subordinates can contribute feedback, while employees can also complete self-assessments. 

This full-circle approach helps managers gain deeper insights into strengths and weaknesses, which is essential for assigning tasks and aligning employees with the right roles. HiBob proves useful in developing a more thorough performance management strategy. 

Top features: 

• Real-time performance tracking with automatic progress updates. 
• Integrated development plans linked directly to performance reviews. 
• Continuous feedback loop to improve engagement and performance. 

9. PerformYard

PerformYard is a performance management tool for small, close-knit teams. It simplifies performance management by offering goal tracking, 1:1 meetings, and performance ratings. 

The software is highly customizable, allowing you to tailor features to match your team’s specific needs. PerformYard is ideal for teams looking for an efficient yet adaptable solution to manage employee performance at scale. 

Top features: 

• Goal setting and tracking to align performance with company vision. 
• Customizable feedback templates for performance evaluations. 
• One-on-one meeting tools for regular manager-employee check-ins. 

Potential Pitfalls to Watch Out For

Yes, performance management software can bring efficiency to your team. But if you’re not careful about selecting the right tool, it can also create several perils and difficulties for your organization. For example:

Yes, performance management software can bring efficiency to your team. But if you’re not careful about selecting the right tool, it can also create several challenges for your organization. For example: 

1. Lack of User Adoption 

User adoption of performance management software is a challenge that many organizations face. This resistance stems from various factors, including the perceived complexity of the technology, the time-intensive training process, concerns about potential micromanagement, and apprehension about how their performance data might be used.  

2. Bias Issues 

Bias often influences performance management, with managers sometimes evaluating employees through subjective lenses. Recency bias, unconscious bias, and other forms of prejudice can skew reviews, creating unfair outcomes.  

Performance management software can unintentionally escalate these issues if their algorithms are designed with inherent partialities, amplifying inequalities rather than mitigating them. 

3. Data Security Issues 

Performance management software tends to hoard large volumes of crucial company and employee data, such as CBI (Confidential Business Information), financial data, PII (Personally Identifiable Information), behavioral data, etc. If the technology is not properly encrypted, all of it can get breached for unethical use. 

How to Choose the Best Performance Management Software for Your Organization?

All said and done, here are the steps you need to follow to choose the best performance management software for your organization:

1. Identify Your Business Needs

Every organization has different goals for implementing performance management softwares. For instance, some may want to enhance their employee productivity rates, while others may wish to improve team collaboration. Based on the goal you decide, the software will set KPIs and feedback mechanisms for achieving them.  

So, before anything else, identify your organizational needs for any performance management software implementation. 

2. Evaluate Key Features

Now that you have defined your needs, look for software with adequate features and functionalities to fulfill them. One way you can ensure this is by checking its: 

• Tools and functionalities: Goal setting, KPI tracking, performance reviews, feedback mechanism, skill and competency tracking, employee recognition, etc. 
• Usability: How easy to use and navigate the software is 
• Customizability: If the software can be tailored as per your changing needs 
• Integrations: If the software can be integrated with other tools and software in your workflow 
• Scalability: If the software will be able to accommodate more users as your organization scales 
• Customer support: If the tool provides 24/7 support to its customers and what’s the quality of their help 

Once you have assessed all of these factors, shortlist the top 3 tools that best fit your criteria. 

3. Check Data Security Standards

In 2023, India ranked 5th in global data breaches. With the figures only going up,  you must choose software with advanced data security protocols. Since the tool will be used to track sensitive business and personal information, data security should be a high priority while choosing the tool. 

4. Examine Customer Reviews

No matter how feature-rich or secure the software is, the real proof of its efficiency lies in its performance. However, not all tools provide a free trial/demo to help you gauge this. 

So, check the software’s ratings and reviews. Visit independent review websites to read testimonials from previous customers.  

5. Consider Your Budget

Finally, consider software costs such as setup, subscription, licensing, training, etc., and choose the best tool for your budget.  

Conclusion

Choosing the best performance management software is crucial for driving success within any organization. With the right tool, you can streamline goal setting, enhance feedback processes, and promote employee growth and development. That’s not all—these tools also help align individual goals with company objectives, improving overall organizational efficiency.  

By selecting a solution that fits your unique organizational needs, you can create an environment that motivates employees and optimizes performance, ultimately contributing to overall business growth and success. 

 Select the best performance management software for your business today! 

Check out PeopleStrong, acomprehensive SaaS HRMS platform if you are in the market for a performance management software.  PeopleStrong’s state of the art  Performance Management Solutions automates all aspects of performance management for you—right from goal setting and feedback—to ensure it’s efficient, consistent, and result-oriented.  

Get in touch today! 

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