Change your Review Culture with Performance Appraisal Software

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Arbitrary. Subjective. Unfounded.

Do any of your employees use these words to describe your performance review process? Maybe they do and you just don’t know it – especially if you’re still using an antiquated review and feedback system. Completely eliminating these feelings may be unrealistic, but performance appraisal software can certainly improve how your company handles its employee reviews.change review culture performance appraisal

Paper performance appraisals are time consuming. Many employees feel as though they’re only done for the sake of doing them and not a valuable asset to career growth. Performance Appraisal Software, on the other hand, creates a visual path to success for employees and the company as a whole.

It handles these five main functions:

  • Performance review structure
  • Communication
  • Goal management/alignment
  • Development plan tracking
  • Salary and compensation


Collecting information for your employees’ reviews is a cinch with performance appraisal software. It allows users to store their notes and keep a digital journal of their accomplishments, issues, and challenges throughout the review period (whether it’s annually, bi-annually, or quarterly).

You can even maintain a sense of familiarity by using configurable forms to match your current review practices, including both templates and rating scales. Do you use a five-star system? Rate 1-5? 1-100? Most performance appraisal programs will allow you to use whichever you prefer.


Handling the performance review workflow is important for a successful appraisal period. Performance appraisal software acts as a line of communication between users, through automated emails, reminders, and notifications within the system. It handles all of the paperwork electronically so there are no more lost documents or outdated forms.

Performance appraisal software also keeps your review process on schedule. The software can remind managers when a review is overdue or when one is coming up. Human resources can easily track the status of reviews from the software, so there’s no need to chase down lost papers.


Performance appraisal software allows employees to visualize their goals and progress via live updates on the software dashboard.

Aligning employee goals with company objectives is crucial to both an employee’s career development and the growth of a company. Performance appraisal software keeps employee goals aligned with company objectives throughout the review period. Employees can see these goals whenever they log into the performance appraisal system.


By engaging employees in their professional development, you can empower and motivate them to improve. A traditional paper review system is like a New Year’s resolution. You make a plan for improvement once a year, and it’s a big deal for a short time. For disengaged employees, however, that passion for improvement erodes quickly and is soon forgotten.

Performance appraisal software maintains specific development and training plans for employees. Users can view and track their progress in the dashboard with individual logins. Actively interacting with one’s own development will keep an employee engaged in the work they’re doing.


When it’s time for the annual salary and bonus review, performance appraisal software can better prepare managers to determine proper compensation. Remember the notes that employees and managers took throughout the review period? Thanks to those notes entered into the software program, the employee’s progress report is more accurate than if they had filled out a paper form (from memory) a week before the actual review.

You can easily tie the employee’s compensation to his/her progress with the performance appraisal software’s recorded achievements and notes. It’s hard for an employee to argue against an appropriate raise when you present objective, visual evidence of their progress and accomplishments at the meeting. This performance data transparency will keep employees engaged in their progress and the company as a whole.

Using performance appraisal software year-round allows for a more accurate assessment of employee performance over a review period. A traditional paper system might make employees feel like their reviews are arbitrary, rushed, and inaccurate because it fails to capture a comprehensive view of employee performance throughout the year.

A well-executed review can increase employee engagement and productivity. Employees should gain something positive from performance appraisals, whether they’re performing exceptionally, poorly, or somewhere in between. Performance appraisal software can make your company’s process more effective in providing valuable feedback.

Looking for Performance Appraisal software? Check out Capterra's list of the best Performance Appraisal software solutions.

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About the Author


Milan Vracarich

Milan Vracarich is a Software Analyst for Capterra, a company that loves connecting buyers and sellers of business software. He specializes in human resources software. When he’s not covering the industry, you can find him running, sampling craft brews, and missing Philadelphia cheesesteaks.


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