The Best Performance Management Software for Growing Businesses

Lattice positions itself as one of the best performance management software for growing businesses as it can manage employee performance, growth, compensation, goal setting, and engagement all within a single system, making it easier to stay organized as teams grow.

One feature that stands out is the built-in AI, which summarizes employee feedback, highlights performance trends, and helps reduce bias. This allows managers to write fair, clear, and useful employee reviews more quickly.

These reviews can then be used to support employee development and succession planning, which is especially important for growing businesses preparing future leaders.

Combined with real-time analytics, Lattice helps managers and HR teams identify top performers, spot areas where employees may need support, and track overall team progress.

Along with employee performance reviews, Lattice helps managers stay connected with their teams through regular one-on-one meetings and weekly updates. Customizable update questions and mood tracking make it easier to understand how employees are feeling and keep everyone aligned.

The software also includes a public employee recognition system, where team members can share positive feedback and celebrate wins. Integrations with Slack and Microsoft Teams make recognition visible and engaging for the whole team.

However, there are some drawbacks to Lattice. Where Lattice’s level of customization is really valuable, its arsenal of tools can feel overwhelming at first and may not be intuitive for some users.

Also, some user reviews suggest its reporting is not very detailed, so growing businesses needing complex or highly tailored analytics may find it limiting.

15Five is another standout choice among the best performance management software for growing businesses, especially those focused on building a culture of continuous feedback, alignment, and development.

The software has a weekly check-in feature, supported by one-on-one meetings, which helps managers and employees identify task challenges early and stay focused on progress toward business goals.

At the center of 15Five’s review experience is Best-Self Review®, a modern performance review process that combines self, manager, peer, and upward feedback to create a well‑rounded picture of performance and development. This multi-source feedback model helps reduce blind spots and encourages more balanced performance discussions.

And within Best-Self Review®, 15Five includes a 9-box grid called a Talent Matrix that replaces traditional spreadsheets with a clear visual layout that shows employee performance and potential across the organization.

Managers and HR leaders can quickly spot top performers or employees who may need additional support, using key performance data that can be easily adjusted with a drag-and-drop functionality..

15Five also builds recognition and feedback into everyday workflows with its High-Fives feature, which employees can use to celebrate each other’s great work and boost morale. The feature also comes with an optional 5-point scoring system to highlight a task’s impact.

And to simplify employee performance evaluations, 15Five offers AI-assisted reviews powered by its AI, Kona. Kona automatically gathers performance data from reviews, one-on-ones, check-ins, team objectives, and High-Fives, helping managers create more complete evaluations with less manual effort.

However, there are some trade-offs. While the platform is effective out of the box, 15Five’s customization options are more limited. Like, the Best-Self Review® follows a fairly set structure, which can make it harder to adjust for very specific roles or custom review approaches. And the check-ins and feedback tools do offer some flexibility, but question types, scoring options, and workflows are mostly standardized, so tailoring them for different teams, departments, or stages of growth can feel a bit limited.

SAP SuccessFactors Performance & Goals (SAP Performance & Goals) is a strong choice for growing businesses that need enterprise-grade performance management with clear goal alignment and formal review processes

As part of the broader SAP SuccessFactors suite, the Performance & Goals module focuses on aligning individual employee goals with company objectives while supporting formal, process-driven performance evaluations.

The platform allows managers to set AI-generated goals that match company priorities, run skills-based assessments, and conduct 360-degree reviews to get a complete picture of employee performance.

Employees can also give and request feedback in the flow of work using the software’s AI copilot, Joule, or through integrations with Microsoft Teams, making performance management more continuous as compared to annual review cycles.

Skills tracking and development are central to SAP Performance & Goals. Managers can assess and rate employee skills, uncover hidden strengths using performance data, and update growth portfolios.

And with team-level views, the software makes it easy to compare skills and track progress, simplifying employee development planning as the business grows.

Compared with lighter tools like 15Five or PerformYard, SAP Performance & Goals offers a more comprehensive, enterprise-grade approach, combining HR management with performance tracking. However, that level of depth can require more time and expertise to use effectively.

Some users also note that reporting and advanced customization are less intuitive than in smaller, standalone tools, so growing businesses should weigh whether its complexity is a good fit for their needs.

PerformYard is a performance management solution built for growing businesses that want a simple, flexible way to manage reviews, feedback, and goal alignment. It helps managers see how individual performance connects to company goals, giving teams a clear sense of priorities and progress.

Teams can quickly set up review cycles, feedback forms, and goal timelines without a steep learning curve because of its clean and user-friendly interface.

With PerformYard, managers can customize feedback forms, goals, and timelines to fit how their teams work. This flexibility can make it easy to adjust processes as the company scales.

PerformYard supports 360-degree feedback for performance reviews, including self-reviews, peer feedback, multiple manager reviews, and even input from external colleagues.

This mix of perspectives helps create a balanced view of performance and supports better development planning

Managers can also customize feedback forms, goals, and timelines to fit how their teams work, which makes it easy to adjust processes as the company grows. Employee wins can be shared directly on PerformYard or via Slack integration to keep teams motivated.

The software also supports ongoing performance tracking to help managers stay on top of employee development. Managers can save and reference notes from one-on-one meetings, while AI-powered summaries highlight key performance trends.

And with intuitive, live dashboards, businesses can track review progress and approvals in real time, staying on track without manual follow-ups.

But some users report that Perform Yard’s mobile app offers a poor experience, making it a less suitable option for teams on the go. Also, while the platform covers basic reporting needs, creating more detailed or highly customized reports can take extra effort.