---
title: The Top 11 Employee Performance Management System Requirements
---

#  The Top 11 Employee Performance Management System Requirements 

 Last Reviewed: March 6, 2026  12 min read [3 comments](https://www.selecthub.com/performance-management/employee-performance-management-system-requirements-features/#comments) 

[ ![Saniya Farokhi](https://www.selecthub.com/wp-content/uploads/2023/01/cropped-Saniya-Farokhi-96x96.png) ](https://www.selecthub.com/author/saniya-farokhi/) [Written by Saniya Farokhi](https://www.selecthub.com/author/saniya-farokhi/) 

Technical Content Writer 

[ ![Hunter Lowe](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Hunter-Headshot-96x96.jpg) ](https://www.selecthub.com/author/hunter-lowe/) [Edited by Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) 

Content Editor 

[ ![Aayushi Kishor Sharma](https://www.selecthub.com/wp-content/uploads/2024/02/cropped-Aayushi-Kishor-Sharma-96x96.jpg) ](https://www.selecthub.com/author/aayushi-kishor-sharma/) [Technical Research by Aayushi Kishor Sharma](https://www.selecthub.com/author/aayushi-kishor-sharma/) 

Senior Analyst 

Table of Contents

* [Top Employee Performance Management Requirements](#Top%5FEmployee%5FPerformance%5FManagement%5FRequirements)  
   * [1\. 360-Degree Performance Review](#1%5F360-Degree%5FPerformance%5FReview)  
   * [2\. Dashboard and Reporting](#2%5FDashboard%5Fand%5FReporting)  
   * [3\. Employee Check-Ins Management](#3%5FEmployee%5FCheck-Ins%5FManagement)  
   * [4\. Employee Recognition](#4%5FEmployee%5FRecognition)  
   * [5\. Employee Surveys](#5%5FEmployee%5FSurveys)  
   * [6\. Feedback Management](#6%5FFeedback%5FManagement)  
   * [7\. Goal Management](#7%5FGoal%5FManagement)  
   * [8\. Mobile Capabilities](#8%5FMobile%5FCapabilities)  
   * [9\. Platform Capabilities](#9%5FPlatform%5FCapabilities)  
   * [10\. Talent Management](#10%5FTalent%5FManagement)  
   * [11\. Integrations and Extensibility](#11%5FIntegrations%5Fand%5FExtensibility)
* [Primary Benefits](#Primary%5FBenefits)  
   * [1\. Empower Managers](#1%5FEmpower%5FManagers)  
   * [2\. Gain Real-Time Performance Insights](#2%5FGain%5FReal-Time%5FPerformance%5FInsights)  
   * [3\. Have Ongoing Feedback Conversations](#3%5FHave%5FOngoing%5FFeedback%5FConversations)  
   * [4\. Conduct Fair and Accurate Reviews](#4%5FConduct%5FFair%5Fand%5FAccurate%5FReviews)
* [How To Conduct a Software Evaluation](#How%5FTo%5FConduct%5Fa%5FSoftware%5FEvaluation)  
   * [1\. Identify Unique Requirements](#1%5FIdentify%5FUnique%5FRequirements)  
   * [2\. Develop a Requirements Document](#2%5FDevelop%5Fa%5FRequirements%5FDocument)  
   * [3\. Compare Vendors](#3%5FCompare%5FVendors)  
   * [4\. Finalize With Report](#4%5FFinalize%5FWith%5FReport)
* [Next Steps](#Next%5FSteps)

Without the right [performance management software](https://www.selecthub.com/c/performance-management-software/), employee reviews and number-crunching is a headache. But it can be worse: dealing with an inefficient system is the ultimate HR nightmare. If this sounds all too familiar, it’s time for a software upgrade.

The key is nailing down those essential features and modules from day one. Luckily, we’ve done the legwork and compiled the top employee performance management system requirements. Let’s dive in!

[Get our Performance Management Software Requirements Template](https://pmo.selecthub.com/performance-management-software-requirem/)

![Employee Performance Management System Requirements]()

## Top Employee Performance Management Requirements

While hundreds of vendors provide different solutions, certain feature sets are common among them all. According to our analysts, the following are key requirements for any performance management solution:

### 1\. 360-Degree Performance Review

Conducting effective reviews requires ample prep time and holistic individual assessments. Start internal conversations on the following:

* What’s your workforce makeup? And what defines success for each role?
* How often do you check in with your employees?
* How will you measure performance? Who’s included in the review process?
* What are your must-have action items in meeting agendas? What are the key discussion topics?
* Where and when do you want to schedule meetings?

Those answers are likely to change as your business evolves. So it’s crucial your system is flexible and adapts to changes.

![Leapsome Performance Reviews]()

Leapsome’s 360-degree performance review tool collects peer reviews, manager reports and self-assessment results. [Source](https://leapsome.zendesk.com/hc/en-us/articles/115004136154-How-to-set-up-a-review-step-by-step-)

Customizable interview guides, agenda templates, performance evaluation criteria and resources to prepare for review meetings are a must for streamlined and informed [performance reviews](https://www.selecthub.com/hris/employee-performance-management/performance-review/).

### 2\. Dashboard and Reporting

More isn’t always good. Large datasets are meaningless if they’re not actionable. The real trick is connecting the dots to identify the root causes of internal productivity trends.

An all-around employee management system pulls data from different areas and presents it in interactive visualizations. Instead of slogging through endless spreadsheets, use heatmaps, collapsible graphs and pie charts to access the right information faster.

![Lattice Dashboard and Reporting]()

Lattice’s dashboard provides a consolidated view of talent profiles, employee sentiment ratings, action items and meeting agendas. [Source](https://lattice.com/library/hr-dashboards-examples-and-best-practices)

Performance management systems offer customized reports detailing key metrics and KPIs with drill-down capabilities on every view. When evaluating your options, check each vendor’s automation capabilities, like budget, worksheet and performance report generation.

### 3\. Employee Check-Ins Management

[Continuous performance management](https://www.cultureamp.com/blog/continuous-performance-management) isn’t about discarding annual performance reviews; it’s about keeping performance conversations alive with more frequent check-in and review meetings.

Regular employee check-ins play a crucial role in maintaining the momentum of ongoing performance conversations, ensuring alignment, feedback and consistent support.

![15five One on Ones]()

Conduct guided one-on-ones with templated agendas and visible action items in 15Five. [Source](https://www.15five.com/products/manager-enablement/1-on-1s/)

Schedule meetings and auto-set your preferred frequency. Conduct weekly, monthly, or quarterly check-ins. Quick access to custom questionnaires and meeting notes streamlines the process.

[Get our Performance Management Software Requirements Template](https://pmo.selecthub.com/performance-management-software-requirem/)

### 4\. Employee Recognition

Have you ever wondered what keeps your employees engaged beyond their paycheck? Achievers Workforce Institute delved into this question in their [latest report](https://www.achievers.com/wp-content/uploads/2023/05/Achievers-Workforce-Institute%5F2023-State-of-Recognition.pdf) and uncovered some fascinating insights.

According to their findings, employees who receive monthly recognition are 36% more likely to feel engaged and productive compared to those recognized quarterly. Additionally, the same employees are 22% more likely to exhibit high job commitment.

It’s safe to say [employee recognition](https://www.selecthub.com/hris/workforce-management/employee-recognition/) is the unsung hero of retaining and engaging talent. You’ll need suitable employee recognition programs to keep your employees motivated.

Employee recognition tools let you create a personalized recognition wall with addable custom hashtags, celebration messages and images.

![Profit Co Employee Recognition Wall]()

Profit.co’s recognition wall allows managers to acknowledge top performers with @mentions, hashtags and reward points. [Source](https://www.profit.co/product/employee-engagement/)

### 5\. Employee Surveys

Performance check-ins don’t always yield honest responses. People might hesitate to share candid opinions for several reasons. That’s when you’ll need a non-confrontational way to collect feedback. Employee surveys encourage your employees to speak up.

Collect anonymous feedback on internal processes from teams and managers to get genuine responses.

![Trakstar Pulse Employee Engagement]()

Trakstar offers customizable questionnaires, pulse surveys and opinion polls to measure employee engagement. [Source](https://support.perform.trakstar.com/article/1685-reporting-on-engagement)

Customized pulse surveys and questionnaires help you detect patterns and diagnose low engagement and poor productivity.

### 6\. Feedback Management

It’s important to give timely, helpful feedback to support your employees. You’ll need a system that makes it easy to create and share fair insights with the team.

![Betterworks Conversation Status Dashboard]()

Betterworks’ dashboard provides in-depth conversation statuses and other vital metrics. [Source](https://support.betterworks.com/hc/en-us/articles/9332819983117-HR-Insights-Overview)

Consider evaluating vendors for depth of [feedback management tools](https://www.selecthub.com/c/employee-feedback-software/). Consider the following top feedback management features.

### 7\. Goal Management

A recent [Gallup survey](https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2022-report.aspx) uncovered that employee burnout and disengagement are at an all-time high. According to the study’s estimates, low engagement isn’t a minor hiccup — it’s a massive economic issue, costing the global economy a staggering $8.8 trillion (9% of global GDP).

Sense of responsibility and accomplishment are vital aspects of the employee experience and the foundational bricks that let employees know that their work contributes to the bigger picture.

An objectives and key results (OKR) framework is the yellow brick road guiding your team to complete goals that match your company values.

![Profit Co Objective Management and Tracking]()

Profit.co tracks department and company-level OKRs and uses filters to track objective completion rates. [Source](https://www.profit.co/product/okr-management/)

PGoal-setting tools help you set key [performance goals](https://www.forbes.com/advisor/business/performance-goals-examples/) at individual, team and organizational levels.

[Get our Performance Management Software Requirements Template](https://pmo.selecthub.com/performance-management-software-requirem/)

### 8\. Mobile Capabilities

Mobile-optimized apps fit perfectly on your phone or tablet. Your team can easily track performance, set up critical one-on-one talks and send updates from any of their devices.

![AssessTEAM Mobile App]()

The AssessTEAM native mobile app makes performance data and resources accessible on your preferred mobile device. [Source](https://www.assessteam.com/mobile-apps/)

Some vendors take things up a notch and provide a native mobile application, making it easier for teams to work productively from anywhere.

### 9\. Platform Capabilities

Responsibly managing internal data depends on two crucial factors:

* **Security:** Safeguard sensitive employee data and user credentials with built-in data management, security and compliance practices.
* **Accessibility:** Easily navigate the platform with technical capabilities like admin settings, permissions and secure sign-in options and UI/UX experiences like notifications, resource visibility and multi-language support.

The good news is that modern systems keep sensitive user data safe and ensure that the right people have access to the right information.

![Trakstar Authentication Settings]()

Trakstar lets you access advanced authentication settings and integrate with OneLogin for enhanced access management. [Source](https://support.perform.trakstar.com/article/1383-setting-up-onelogin-authentication)

Here’s what you need to look for in terms of data protection and compliance management:

### 10\. Talent Management

It’s always better to build than buy. That’s the mindset driving more and more businesses to invest in their existing talent pools instead of hiring externally. Effective [talent management](https://www.selecthub.com/category/talent-management/) is all about empowering your workforce to let them do what they do best.

Built-in talent management capabilities help unlock individual potential, bridge skill gaps and plan for the future.

![Leapsome Organizational Chart]()

Leapsome automatically generates organizational charts. [Source](https://leapsome.zendesk.com/hc/en-us/articles/360013437478-Creating-an-org-chart)

Performance appraisal frameworks and insights assist your managers in making informed promotional decisions and creating personalized employee skill development paths.

### 11\. Integrations and Extensibility

Last but not least, consider how well the system integrates into your existing tech stack. The purpose of technology is to improve overall operational efficiency.

An ideal system must coexist with your existing [human resource information system (HRIS)](https://www.selecthub.com/c/hr-management-software/). Other HR-related systems include talent management, learning and development, project management, and payroll.

![Betterworks Integrations]()

Betterworks supports third-party integrations with multiple productivity and HR platforms like [Salesforce](https://www.selecthub.com/p/crm-software/salesforce/), [Jira](https://www.selecthub.com/p/project-management-software/jira/) and [Asana](https://www.selecthub.com/p/project-management-software/asana/). [Source](https://support.betterworks.com/hc/en-us/articles/115002834392-Zenefits-Integration)

[Get our Performance Management Software Requirements Template](https://pmo.selecthub.com/performance-management-software-requirem/)

## Primary Benefits

Effective and constructive feedback goes beyond an annual review. The right software facilitates this process and also inspires employees to enhance their performance.

A well-rounded performance management system brings the following benefits:

### 1\. Empower Managers

The most effective businesses know how to position their managers as coaches. Performance management systems equip your leaders, managers and supervisors with the necessary performance information to support your workforce.

Track individual, team and departmental progress to start suitable dialogues with employees and help them succeed.

### 2\. Gain Real-Time Performance Insights

A system that syncs perfectly with your business’s pace provides a clear, real-time view of individual performance. You’ll gain information on progress, productivity and performance fine-tuned to your workforce, letting you pinpoint disconnects and alter goals when required.

### 3\. Have Ongoing Feedback Conversations

A [recent study](https://peopleelement.com/wp-content/uploads/2023/06/People-Element-2023-Engagement-Report-Final-1.pdf) found that the modern workforce expects more than a paycheck from their employers. The preference for flexible work, work-life balance and employee voice are driving forces behind a productive workforce.

Employee management systems play a key role in meeting these expectations head-on. Feedback and check-in management tools help identify who requires support and the next steps to unlocking potential.

### 4\. Conduct Fair and Accurate Reviews

Performance reviews get a bad rap, and using the pen-and-paper method for complex calculations wastes time and invites errors. Performance management software adds transparency to the review process and efficiently takes care of all the nitty-gritty details.

[Get our Performance Management Software Requirements Template](https://pmo.selecthub.com/performance-management-software-requirem/)

## How To Conduct a Software Evaluation

Choosing an ideal system is daunting, especially with hundreds of vendors in the market. If you need help figuring out where to start, consider the following steps to structure your software selection process:

![Performance Management System Evaluation Process]()

### 1\. Identify Unique Requirements

First, identify the key people who’ll use the platform extensively. Once you assemble your team, start internal conversations surrounding the obstacles and challenges they encounter in tracking progress and productivity. The goal is to identify weaknesses in internal processes that software can remedy.

First, figure out who will use the platform the most. Then, gather your team and talk about the problems they have with tracking progress and getting work done. The goal is to find out what the software can do to help fix these issues.

### 2\. Develop a Requirements Document

Structure your findings by transforming your requirements list into an actionable document. The goal is to separate the must-have from the good-to-have features.

### 3\. Compare Vendors

Once you pinpoint the key features you’re looking for, use that list to compare different vendors. See how each option matches up with what your company needs and choose the one that fits best.

Make things easier with collaborative tools like spreadsheets to gather your findings. Our free [vendor comparison report](https://pmo.selecthub.com/top-performance-management-software/), which includes a built-in ranking system, helps you collect, process, and save data more efficiently.

Want a shortcut? We’ve done the work for you. In this article, we revealed the top five solutions and highlighted their best-rated modules and limitations. Get all the essential info to kickstart your understanding of these leading vendors.

### 4\. Finalize With Report

Finally, create a detailed report based on your aggregate findings. Share and review the information to identify the high-priority requirements. You’ll be able to evaluate the various weighted categories that emerge and pinpoint which features are essential.

Still, if you prefer a DIY approach, our article on the [lean selection method](https://www.selecthub.com/miscellaneous/technology-selection/software-evaluation/) covers the nine critical steps of software evaluation.

[Get our Performance Management Software Requirements Template](https://pmo.selecthub.com/performance-management-software-requirem/)

## Next Steps

Now that you know what a comprehensive system can and should do, it’s time to use this article as a resource and begin your software selection process. Take advantage of our free, customizable [requirements template](https://pmo.selecthub.com/performance-management-software-requirem/) to see how different features stack against your software needs.

Which feature is most important to you? Let us know by leaving a comment below!

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 Originally published in July 2019 and last updated in March 2026\. Contributions from Saniya Farokhi, Aayushi Kishor Sharma, Nithin Shetty, Jaisri Narasimman, and Hunter Lowe.

## About the Contributors

 The following team members helped research, create, and review this content.

[ ](https://www.selecthub.com/author/saniya-farokhi/) 

 Written by  
[Saniya Farokhi](https://www.selecthub.com/author/saniya-farokhi/) 

Technical Content Writer

Saniya was a Technical Content Writer at SelectHub. With an MBA in Marketing, she found her calling in the world of digital marketing and technical content writing. Her work spanned HR-centric systems like talent management, recruitment and performance management to robust software like ERP and manufacturing systems. When the day winds down, she enjoys taking long walks with her dog or indulging in her artistic side by swapping her keyboard for a pencil. She finds solace in watching the sunset over the beach and appreciates the little things in life.

[See Full Bio](https://www.selecthub.com/author/saniya-farokhi/)

[ ](https://www.selecthub.com/author/aayushi-kishor-sharma/) 

 Technical Research by  
[Aayushi Kishor Sharma](https://www.selecthub.com/author/aayushi-kishor-sharma/) 

Senior Analyst

Aayushi Sharma has been part of SelectHub since 2021\. In her role as a Senior Analyst, she leads research efforts for categories including HR, EHR and marketing. She also earned an MBA in marketing. Outside of work, she's a social butterfly who loves exploring new things and places.

[See Full Bio](https://www.selecthub.com/author/aayushi-kishor-sharma/)

[ ](https://www.selecthub.com/author/nithin-shetty/) 

 Technical Research by  
[Nithin Shetty](https://www.selecthub.com/author/nithin-shetty/) 

Senior Analyst

With experience in research and consulting going back to 2015, Nithin Shetty is an asset to SelectHub's research team. In his Senior Research Analyst role, he works on projects in categories like HR, CRM, EHR and ERP. He's also a big movie buff and sports fan. When he isn't watching his favorite film or game, he's usually volunteering his free time to causes like blood drives and environmental cleanup.

[See Full Bio](https://www.selecthub.com/author/nithin-shetty/)

[ ](https://www.selecthub.com/author/jaisri-narasimman/) 

 Technical Research by  
[Jaisri Narasimman](https://www.selecthub.com/author/jaisri-narasimman/) 

Principal Analyst

A graduate of NTU Singapore, Jaisri Narasimman honed her data mining and curation skills during her post-graduate education, focusing on developing strategies to help businesses make the most of their data. In her role at SelectHub, her research spans categories like HR, CRM and EHR.

[See Full Bio](https://www.selecthub.com/author/jaisri-narasimman/)

[ ](https://www.selecthub.com/author/hunter-lowe/) 

 Edited by  
[Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) 

Content Editor

Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter.

[See Full Bio](https://www.selecthub.com/author/hunter-lowe/)

Saniya FarokhiThe 5 Best Free Performance Management Software for 2026

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###  Conversation (3) 

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####   **Lucia del Pino**  \- November 9, 2023  
In today’s dynamic work environment, the traditional annual performance review is becoming obsolete. With the evolution of work from office-based to network-based, it’s crucial to leverage technology to capture the true value employees bring to an organization. At Confirm, we discovered that Organizational Network Analysis (ONA) offers a fresh perspective by mapping the hidden connections and influences within a company, ensuring that performance management is not only about what is seen but also about the unseen yet significant contributions. This method can help identify the “quiet contributors” who may not be as visible in traditional reviews but are crucial to team success, addressing the common issue where 5% of employees can cause 50% of problems. It also helps in understanding real performance impact beyond manager bias, which can influence 60% of a performance rating.  
**[Reply](#comment-184232)**
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####   **Lucia del Pino**  \- November 8, 2023  
Consider leveraging Organizational Network Analysis (ONA) in your performance management system to address some common challenges mentioned in this post. At Confirm we’ve implemented this tool because it helps identify key contributors and quiet contributors who might be overlooked in traditional performance reviews. It can also uncover influential employees who energize and motivate their peers. By incorporating ONA questions like, “Who do you go to for help and advice?” and “Who do you see as an outstanding contributor?” you can gain deeper insights into your workforce’s dynamics and performance, ultimately leading to fairer and more accurate reviews. Additionally, ONA can help adapt your performance management system to changes in your business by providing real-time data on network dynamics, enabling more informed decisions.  
**[Reply](#comment-184198)**
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####   **EVIE JOHNSON**  \- March 2, 2020  
I read the entire article. It provides very informative data. Thank you for sharing such information.  
**[Reply](#comment-31979)**

**Tier 1:**  
 Fully/moderately supported out-of-the-box allowing for quick and easy deployment.  
 Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. 

**Tier 2:**  
 Supported with workarounds or add-ons that may require additional costs.  
 Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. 

**Tier 3:**  
 Requires partner integrations or custom development that is often at an additional cost.  
 Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 

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