| 20 July, 2023 | 6 Min Read

Top 5 Features of Performance Review Software You Need to Know

According to a Deloitte survey, 58% of organizations rate their current performance management systems as "C Grade or below," indicating a clear need for more advanced, feature-rich solutions.

Performance reviews are vital for talent management. They help HR managers evaluate employee performance, identify strengths and areas for improvement, and give feedback and recognition.

HR professionals must follow the latest HR software developments to stay ahead in the dynamic HR environment. In this article, we will discuss some of the key trends that will shape the future of HR software in 2023 and beyond, such as:

But effective performance reviews can be hard, especially with large and diverse workforces, complex and dynamic goals, and multiple sources of feedback.

That’s why many HR managers use performance review software to streamline and enhance their performance management processes. Performance review software is a type of HR software that automates and simplifies employee evaluations. It also provides tools and features for goal management, feedback collection, recognition systems, reporting, and analytics.

User-Friendly Interface

A vital feature of performance management software is how easy it is to understand and use by different types of managers, both technical and non-technical. This can help you:

  • Cut down on training costs and time
  • Enhance user adoption and engagement
  • Simplify performance management processes
  • Improve user satisfaction and retention

A good performance management software should have a user-friendly interface that allows you to:

  • Learn the software quickly with a simple and intuitive design
  • Use the software from any device, anywhere, anytime
  • Manage performance reviews, goals, feedback, and recognition with ease
  • Customize the software to fit your specific needs and preferences

A study by Software Advice in 2022 found that 88% of software buyers consider ease of use as one of the top criteria when choosing a software solution. This shows a high demand for more user-friendly and accessible solutions.

Comprehensive Goal Management

Another important feature of performance review software is supporting employee goal management. This can help you:

  • Align employee goals with organizational objectives
  • Track progress and achievements
  • Adjust goals as needed


According to Gartner’s survey in 2022, only 36% of organizations have a formal process for setting and reviewing employee goals, and only 23% align employee goals to organizational strategy. This indicates a discrepancy between goal management's importance and its implementation. Performance review software can address this by offering efficient goal-setting and tracking tools.

Goal Setting

For example, some solutions let you use agile goal-setting frameworks, such as OKRs (Objectives and Key Results), to define clear, measurable, and time-bound employee goals at different levels. This can help you create a culture of accountability and transparency and align individual goals with team and company goals.

Goal Tracking

You can also use progress-tracking tools like Gantt charts and Kanban boards to monitor and update goals in real-time. This can help you keep track of employee performance, provide timely feedback, and adjust goals as needed.

Goal Alignment

Furthermore, you can encourage collaboration and alignment by letting employees share their goals with others. This can help foster cross-functional teamwork, communication, and feedback.

Enhanced Feedback and Recognition Mechanisms

Feedback and recognition are essential for performance review. They help employees:

  • Understand their strengths and weaknesses
  • Improve their skills and behaviours
  • Feel valued and appreciated

However, traditional feedback methods may not provide enough accurate information on employee performance.


That’s why some solutions offer enhanced feedback and recognition mechanisms that let you collect more comprehensive and timely feedback from multiple sources. For instance, you can:

  • Use multi-source feedback (360-degree reviews) to gather feedback from managers, peers, subordinates, customers, or external stakeholders
  • Implement real-time, peer-to-peer recognition systems that let employees praise or reward each other
  • Leverage AI-driven sentiment analysis to identify patterns in employee feedback

According to a survey by Qualtrics in 2022, feedback is one of the most important drivers of employee satisfaction and engagement. However, only 43% of highly engaged employees receive feedback at least once a week, while 18% of low-engaged employees rarely or never receive feedback. Moreover, 42% of employees say they don’t receive enough feedback to improve their performance, and 38% say the feedback they receive is not helpful or constructive. Performance review software can help address these challenges by providing more frequent and effective feedback and recognition mechanisms. 

Mobile app features for performance reviews


Performance review is an important part of performance management, but they can be time-consuming and inconvenient for employees and managers. That’s why Grove HR mobile app allows users to give and receive feedback anytime, anywhere, with just a few taps on their phones.

Now, you can do self, peer, and project-based reviews anytime, anywhere with your smartphone. This provides ultimate convenience and seamless self-service for performance management. 

  • Conduct project-based reviews with your team: You can do performance reviews based on a specific project that HR launches on the mobile app. 
  • Write and view peer assessments for your colleagues: You can write peer assessments for your colleagues, and the line manager can view submitted peer assessments during the review on the mobile app.

Seamless Integration with HR Tech Stack

Finally, one of the features that can enhance your performance review software is the ability to integrate with your existing HR tech stack. This can help you:

  • Streamline data sharing and synchronization between your performance review software and other HR tools
  • Improve user experience and security
  • Reduce data duplication and errors

For example, some solutions let you use APIs and single sign-on (SSO) capabilities to connect your performance review software with other HR systems. Moreover, some solutions let you leverage data from multiple HR systems to inform your performance management strategies.


Integration can help you streamline data sharing and synchronization between your performance review software and other HR tools, such as learning management systems (LMS). This can save you time and resources and improve the accuracy and reliability of your HR data.

User Experience and Security

User experience and security can be improved using APIs and single sign-on (SSO) capabilities to connect your performance review software with other HR systems. This can reduce the hassle of logging into multiple systems and enhance the security of your HR data.

Harnessing the Power of Performance Review Software

Performance review software is pivotal in today's business world. Gartner stated that leveraging features like advanced customization and goal management can lead to a 12% increase in employee performance. It streamlines evaluations and fosters continuous improvement, leading to higher productivity. 

In addition to performance reviews, ongoing feedback and coaching are essential for employee growth. With regular check-ins, managers can provide timely guidance and recognize good work. Employees gain valuable insight into their strengths and opportunities for improvement. Frequent conversations, instead of once-a-year reviews, lead to a more engaged and motivated workforce. When feedback becomes part of the organizational culture, it creates a continuous learning environment where people feel invested in and able to thrive.

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Reduce manual effort with automated HR processes

  • Reduce manual effort with automated HR processes
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  • Conduct 360-degree performance management easily.