The Best Performance Management Software for Small Businesses
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There are plenty of HR automation tools that offer performance management as a feature, and even dedicated tools that focus on only that. But how do you decide which one is right for your small business?
In this guide, I’ve researched and compared what’s available on the market today to bring you a shortlist of the best performance review tools for UK businesses. Whether you want one tool for all your HR needs, or an app just for appraisals and feedback, there’s a tool on this list for your needs.
How can I tell which HRMS is best for my business?
We believe that Charlie is the best overall choice for small businesses looking for performance review software. Still, it doesn’t hurt to compare different options before settling on your final pick. We also understand that we’re not the right choice for some companies, and that it’s always important to know what else is out there.
As part of our process for building this list, we’ve:
- Researched various performance management tools
- Read through real user reviews and experiences
- Spoken to Charlie customers that switched from other software tools
Our goal is to bring you a comprehensive shortlist of performance review tools for your small business, so you can make an informed choice.
7 of the best performance review tools
Many hours of research have brought us here — our go-to list of the top performance management software tools. Read through our findings and use this to help you identify which tool(s) you want to test out.
#1
CharlieHR
Charlie is the perfect system for small business leaders that want a smoother performance review process. Maybe it’s the first time you’re introducing one, or you want to streamline the experience so it takes up less of your time. Whether you’re preparing for your first round of reviews or a seasoned pro, Charlie can help.
Thanks to automation and expert-created review templates, you can have your performance management process up and running in no time. Prefer to customise the experience? Our review builder has everything you need to tailor the process to your needs.
Teams use Charlie to submit self-assessments by answering questions, share insights on peers with 360-degree feedback, and get reminders on when to complete their feedback. Managers benefit from a clear dashboard, progress tracking, and easy review meeting scheduling.
Charlie streamlines the performance review process so you can stop putting progression on the backburner and start taking action to support, nurture, and grow your team. Plus, you also get access to all of Charlie’s other features (including time-off management, onboarding, and more) at no extra cost.
Pros 💪
Quick, faff-free set up: simply set an end date, frequency, reviewers, and participants, and launch your performance reviews in minutes.
Built-in templates: no time to come up with performance review questions? Use ours, they’ve been written by qualified HR experts.
Progress dashboard: stay in the loop and oversee the whole process across the company, without micromanaging.
Automatic reminders: never chase up again and make sure that reviews get completed on time.
360-degree feedback: unlock a more complete picture of individual performance by getting feedback from not just their manager but their team members too.
Swift onboarding process: sign up and explore the software with a free trial, with no need for a complicated onboarding journey or training sessions.
Cons 🌀
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Not suitable for large businesses: our easy-to-use performance review tool is designed for small businesses. If you’re looking for advanced reporting or performance reviews at scale, an enterprise-level software tool would be a better fit.
Pricing
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Transparent pricing based on number of employees (from £5/month)
- Includes all of Charlie features – performance reviews, time off tracking, perks & benefits, onboarding, etc – no extra cost
- No hidden fees
What people say
I'm blown away by how useful Charlie's Reviews has been. It's enabled some really high-quality conversations within our team that I know just wouldn't have happened otherwise
Chris Wallis, CEO and co-founder @ Intruder – 50-100 employees
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#2
CharlieHR
Sage HR also offers companies a range of HR features in one place, but the feature set and approach to pricing makes this a more useful tool for bigger businesses. This performance management tool includes goal setting, 360-degree feedback, meetings, surveys, and quick feedback.
Teams can get access to leave management and core HR as standard, with performance management available as an extra add-on. Having to pay extra for this functionality might make it too costly for small businesses that want a simple, all-in-one platform.
Pros 💪
Versatile for international teams: Sage HR is available in multiple languages, making it ideal for companies with an international presence.
Goals and OKRs: track progress for each team with objectives and key results that are aligned with your bigger business goals.
1-to-1 meeting scheduling: discuss different topics and catch up with team members regularly.
Quick feedback: allows team members to show appreciation for their coworkers or ask for feedback.
Cons 🌀
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Not great value for money: as you scale, SageHR may not be the best choice as the cost of add-ons and extra services can increase quickly.
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Poor user experience: former users have reported that they found the interface clunky and that it wasn’t as modern as other tools.
Pricing
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Sage HR’s base plan includes core HR and leave management, starting at £4.40 per employee per month
- Upgrade to add performance management for £2.20 per employee per month, bringing your total to £6.80 per employee per month.
What people say
Whether we needed to hire, plan shifts, handle timesheets, or conduct performance evaluations, Sage HR enabled us to do everything in a centralised spot without overcomplicating things.
#3
CharlieHR
Workday is a complex HRMS platform designed for large companies with more than 500 employees, so it’s not always the best fit for a small business. With both HR and finance functionality in one place, it’s a useful contender for startups that are scaling and want to keep operations running smoothly.
HR leaders and managers can use Workday to run performance and talent reviews, schedule check-ins, and discuss career goals — alongside a wide range of other HR tasks.
Pros 💪
Complete performance management system: a well-rounded software if you’re looking to automate even the smallest part of your performance management workflows.
Career development tools: not only does Workday give you the opportunity to perform thorough performance reviews chats, it’s also a great way to use data to plan your workforce.
Skill analysis and closing the gaps: inform hiring decisions and identify training needs thanks to the data available within Workday.
Cons 🌀
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Lengthy set up: if you’re looking for a quick solution to your performance management desires, this is not it. Workday requires setup and training for your teams to be able to make the most of it.
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Aimed at larger companies: Workday can be expensive and overwhelming for small businesses, with a lot of detailed features that you won’t use (and therefore don’t need to pay for).
Pricing
- Workday’s pricing isn’t available online. To get a quote, you’ll need to speak to someone in their sales team.
What people say
Setting, monitoring, and completing goals is made simple for managers and staff thanks to the user-friendly interface and continuous feedback system, which also improves employee engagement and performance management.
#4
CharlieHR
BambooHR, like Charlie, is an all-in-one HR software tool. It can handle not just performance management but core HR too. Unlike Charlie however, BambooHR is better suited to bigger businesses — and some of their features are only available to users in the US.
The platform enables teams to run 360-degree feedback cycles, different types of assessments, and supports custom questions. With features like the ability to tailor the questions to specific teams, it’s a useful contender for startups and businesses that are scaling fast.
Pros 💪
Frequent review cycles: frequent employee feedback is a motto when it comes to BambooHR, and they’ve built a tool that allows managers and individuals to give feedback quickly.
Customisable performance cycles: run standard cycles, skip an assessment, or introduce a new hire program depending on your needs.
Employee goals: set goals for each of your team members and track their progress through a dashboard.
Employee performance tracking: performance reports allow you to visualise trends and identify opportunities for growth or support.
Cons 🌀
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Designed for US-based teams: much of the software has been tailored to support US companies, and customer support teams are available in US timezones. It’s still usable by UK-based companies, but you benefit less from the features and support hours.
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No transparent pricing: BambooHR offer two plans, but the pricing isn’t publicly available. To find out how much it’ll cost, you’ll need to speak to their sales team.
Pricing
- BambooHR does not currently offer pricing on their website, but you’ll need to upgrade to the Pro plan if you want to take advantage of the performance management features.
What people say
We've barely skimmed the surface of the available reporting but have already utilised it for evaluating wage increases, sending out performance reviews, and ensuring no employee is left out of company-wide updates.
Easily streamline your appraisals with Charlie
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Quick and easy to set up
No hidden costs
Intuitive, user-friendly design
From just £5 per month
#5
CharlieHR
Zoho People is a cloud-based HR platform built for employee experience, and it includes a fully-featured performance appraisal tool. It’s part of a family of products by Zoho, so if you already use one of their other apps this could be a potential match.
Zoho People makes it easy for HR departments and managers to set goals, monitor progress, and automate the performance review process. You can enable self-appraisals, multi-rater reviews, 360-degree feedback, and tailor your annual appraisals and reviews to meet your needs.
Pros 💪
Strategic decision-making: based on the insights contained in the software, Zoho People will help you leverage your talent pool and understand when you need to hire and at what level for succession planning.
Goal setting: get company-wide and personal goals on the same page by aligning them and tracking progress.
Performance insights: see completed goals and look for opportunities to clear roadblocks.
Multiple ways of running reviews: between classic appraisals, self-evaluations, multi-rater reviews and more, you’ll get all the feedback you need to support your employee’s growth.
Cons 🌀
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A lot of features you may not use: Zoho People includes a wide range of HR features including shift scheduling, timesheet management, and compensation management. If you don’t need these, it can feel overwhelming and become a distraction from your main goals.
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Performance management is only available in upper tiers: performance appraisals, goal tracking, and 360-degree feedback aren’t included in lower tier pricing plans. You need to upgrade to at least the Premium tier to unlock these features.
Pricing
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Zoho People starts at £0.83 per user per month for the Essential HR plan, but you’ll need the Premium plan at £2.50 per user per month to access performance management.
What people say
What I like best about this application is that employees can self-manage their own HR data through pre-set parameters. This tool also allows me to personalise the questionnaires so that I can ask exact questions with reference to the company's guidelines.
#6
CharlieHR
Unlike other tools on our list, PerformYard is focused exclusively on performance management and building high-performing teams. This is ideal for teams that already have HR software they use and love, and simply want another app dedicated to appraisals and feedback. If you need an all-in-one tool though, this isn’t a good match.
PerformYard enables managers and leaders to streamline performance management through check-ins, reviews, goal setting, and continuous feedback. It’s a platform that goes deep on feedback, but it might actually be too detailed and complex for your needs.
Pros 💪
Reviews and check-ins: schedule regular catch-ups with team members to support their growth throughout their time with you.
Goal management: set personalised individual goals and track them effectively.
Continuous feedback: get in the habit of providing your team with feedback by sending recognition, providing real-time feedback on projects, and sharing feedback notes.
Employee engagement: run engagement surveys alongside your feedback cycles to understand more about your team members and their needs.
Cons 🌀
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No core HR functions: PerformYard only handles performance management, so you’ll need another tool for your core HR needs.
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A “nice-to-have” tool: although performance management is becoming more of a focus, having a dedicated tool for it might feel like it’s not necessary right now.
Pricing
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PerformYard is available from $5-10 per person per month. You can also add employee engagement, including anonymous surveys, for $1-3 per person per month.
What people say
Having my past performance reviews available at the click of a button allows me to reflect on my previous activities and achievements and use this information in preparation for future reviews. Having feedback available on the same platform streamlines the performance review process.
#7
CharlieHR
Appraisd is a dedicated performance management software tool like PerformYard, but this UK-based platform also includes employee development. This could be a great fit for HR teams that want to develop their people and want a standalone tool to simplify the process.
Appraisd combines employee performance reviews, 360-degree feedback, check-ins, and objective setting to give you a clearer picture of your team members’ needs and how you can support their growth. Extra features like talent profiling and development plans enable you to take this a step further alongside continuous performance management.
If you like the look of both Appraisd and Charlie, then good news — you can link them together seamlessly with our dedicated
Appraisd integration. You get the best of both software tools in one place.
Pros 💪
Built-in templates: use the library of templates to quickly get started.
Wide range of review options: schedule yearly, monthly, quarterly, and regular one-on-one meetings.
Feedback requests: promote a culture of feedback by making it easy for individuals to request feedback from their manager or peers.
Integrates with Charlie: Appraisd is a great option if you enjoy Charlie’s easy-to-use platform but want to add more detailed performance management functionality.
Cons 🌀
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Focused on performance management: you’ll need another software tool for core HR and other HR functionality, like Charlie.
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May not be affordable for small businesses: with a minimum monthly cost of £360, this tool may be too expensive for some smaller businesses.
Pricing
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Appraisd’s pricing starts at £360 per month for companies with up to 50 employees.
What people say
I have been using Appraisd for the past year, and it has significantly transformed our employee review process. The platform is easy to use for both managers and employees.
Which performance management solution is right for your small business?
We’ve shared our top recommendations for performance review software, but ultimately the one you choose will depend on your unique needs and goals. As you compare different options, here’s what to consider:
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All-in-one or dedicated tool — Do you need a HRIS system or a specialised talent management or employee performance management tool?
- Read through real user reviews and experiences
- Features — Does the software offer the features you need? Are there too many or not enough?
- Ease of use — Is the tool easy to use? Could everyone on your team use it?
- Alignment with your processes — Do the features align with your internal process for performance reviews? Does it offer 360-degree feedback or continuous improvement processes? Can you personalise the software to make it match?
- Onboarding experience — Can you get onboarded quickly, with no fuss?
- Pricing — Is the monthly cost within your budget? Is upgrading prohibitively expensive as you grow?
- Region compatibility — Is the software designed with UK small businesses in mind?
- Reporting — Can you report on the employee data, metrics, or KPIs that matter most to you?
- Mobile app — Do you need access to a mobile app?
- Integrations — Can you integrate the tool with the software you already use to enhance its impact?
Use this list alongside our shortlist to help you find the best match for your small business.
Try Charlie, the best performance management software for UK small businesses
There’s a big range in features, detail, and pricing when it comes to these performance management software tools, and not all of them are the right fit for small businesses. Some are too expensive, and many are so overcomplicated when all you want is to make running performance reviews easier.
If you’re a small business looking to streamline your appraisal process, you need Charlie.
Charlie is an ideal fit if:
- You have less than 50 employees
- You’re a founder, operations lead, office manager or are in a role where you perhaps have to juggle many other responsibilities
- You want to simplify and streamline not just performance reviews but all your HR tasks
Our performance management tool is designed specifically for small businesses. It’s clean, simple, and easy to set up. Take advantage of expert knowledge with our built-in template library, or customise every question to match your goals. Roll out recurring reviews, track progress, and send automatic reminders for feedback. Every step of the process has been designed to make the overall experience easier — not just for you, but for your team members too.
We can talk about Charlie all day long, but the best way to figure out if it’s for you is to try it out yourself. Sign up for a free trial and experience Charlie’s performance management feature today.
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Performance management software for small businesses FAQs
Investing in performance review software for the first time can feel like a big task. If you’ve got questions, we’ve got the answers.
What is the best performance management software for small businesses?
We wholeheartedly believe that Charlie offers the best performance management platform for small businesses, especially those based in the UK. We’ve designed our entire software with you in mind, including the way we structure, automate, and streamline the performance review process.
What features should I look for in performance management tools?
Your performance management tool of choice should make it easier to plan, schedule, run, and analyse your entire feedback process. Look for software that includes automatic scheduling, 360-degree feedback, check-ins, notifications or reminders, and analytics.
How does performance management software improve team productivity?
Introducing performance management software can help make your team more productive. This is because with regular, honest, and helpful feedback, it’s easier to celebrate strengths and improve on weaknesses — leading to higher levels of productivity. Employees also feel motivated by setting and tracking goals, giving and receiving feedback, and being part of a culture that promotes continuous feedback.
How do I choose a performance management system?
The best way to choose a performance management system is to think about your needs and goals, your budget, and what features you need. From there, you can build a more appropriate shortlist of contenders to look at more closely. If you don’t have time for this, our list above includes plenty of great options to consider.
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Written by:
Joe Hodges
Joe is one of CharlieHR's product managers (and a former customer advocate!) which means he's responsible for product planning and user research.
Every week, he gets to speak to small businesses and startups to understand their individual needs and release features that are tailored to them.
He also spends a lot of time researching our competitors, signing up for free trials, getting on calls, networking, and has acquired a lot of knowledge about the HR software industry as a result.
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