Employees play a big part in bringing desired productivity and subsequent success to any organization. The degree of their performance will determine the achievability of the above-mentioned factors. Hence, performance review is an inevitable process. It enables managers to set clear and standard expectations for their workforce, open opportunities for them, and provide an environment where the employees can nurture and advance their skills.

An online performance evaluation, which can be achieved through effective employee assessment software, is a constructive approach that can bring out every drop of potential from each employee through assessments, feedback, and setting of plans.

So, here is a write-up to give you an overview of how employee assessment software works and explore the top 5 software tools available for an efficient performance evaluation.

What is Employee Assessment Software?

Employee assessment software is a solution that helps organizations track, monitor, and assess the performance of their employees. Also known as employee evaluation software, it entails a set framework of criteria that helps HR managers and higher officials have a 360-degree view of the performance of every employee in a detailed fashion.

The software lets the HR professional streamline the steps in the process and successfully cover all aspects of the appraisal process. It also helps them to create and follow an optimized and automated workflow.

The managers and the higher officials of the organization need to have a clear idea of what their team has achieved and its potential to do more. For this, the performances of your employees can be evaluated using employee assessment software. The features that employee assessment software offers are numerous and it is a necessary tool that would help in carving out better performance opportunities for your employees.

Implementing performance evaluation software lets the organization have a deep understanding of its employees’ strengths and weaknesses and rightly capitalize on them in ways that are beneficial to both ends. Additionally, it is a good tool for giving insightful feedback obtained from the performance review reports that are generated in the performance review tool. 

Why is it Important to have an Employee Assessment Software?

Let us reiterate this for you. Your employees’ performance determines the degree of productivity your organization acquires. Using the performance review software will lead you in the right direction and acquire a clear comprehension of what needs to be evaluated and what kind of feedback must be given.

Moreover, conducting a performance appraisal program with a huge number of employees is also not an easy task, hence it is important to use a tool that would accentuate the efficiency of the process. Remedies can be devised and suggested with ease. Additionally, from the employee’s perspective, they have the right to know whether their work is being assessed and appreciated rightly. So, all this can be carried out smoothly with the help of employee assessment software. 

How Does the Employee Performance Review Tool Work?

Performance review tools are effective solutions that simplify, strategize, and digitize the evaluation process giving an outline to the process and making it consistent to all employees. It provides a common space for creating evaluation forms, conducting evaluations, setting future goals for each employee, team, and organization, tracking the set goals, and offering important feedback. It also streamlines the administrative tasks and other arrangements that have to be done before and after the evaluation program.

Periodically conducting online performance evaluations improves the collaborative ability of different elements in the organization. This automatically lets the set goals of the employees and organization align with each other and achieve proper coordination. 

Leveraging this software facilitates an effective way of transferring feedback and coaching that would nurture a constructive improvement pattern and build employee engagement in every aspect. With the different types of assessment methods, inputs are given not only from the managers or HR professionals but also from peers, subordinates, and even customers, all aiding in the professional development of the employees. Additionally, the employee assessment software produces reports and analytics based on the evaluations of each employee as well as the team’s performance. 

Benefits of Using an Employee Evaluation Software

Employee review software is a well-architectured tool that holds immense potential to ease the process of employee review. Such tools contribute immensely to the performance review process conducted by HR managers and provide several benefits to the review process.  Let us look at some of the game-changing benefits that an organization can gain from employee evaluation software. 

1. Continuous and Instant Feedback

The employee review software maintains a continuous flow of communication with the employees, providing them with valuable feedback instantly. A notable point is that, in employee evaluation software, the employees can access the feedback whenever they want to on the dashboard.

Online performance review software can also be used to set timelines for periodical employee evaluation. This will let the HR manager plan and organize the review process in advance. The review cycle for each team can be determined according to the schedule and the software will carry forward the further steps in the process. 

2. Automatic Reporting 

The software can easily be integrated with applications like HRMS to collect data on the employees, and the software will automatically generate reports that would help the managers format actionable insights for each team member. The advantage of using a tool is that everything is just a click away, and a huge amount of human labor is removed. The employee performance assessment can be conducted at three different levels. 

  • Team
  • Individual
  • Manager

Evaluating the team members at different levels will give the HR professionals an overarching understanding of the performance trends within the team as well as individually and build the right betterment initiatives. 

3. Effective Goal Management

The employee performance review software offers managers an outlook that covers the employees’ abilities as a whole. This enables the managers to perform goal management most effectively. As the software gives a clear idea of the strengths and weaknesses of each employee, the team manager will be able to judge and decide on the further steps and the kind of training that needs to be given to the team. The goals for the team can be set up, which can be later tracked to check the progress simultaneously.

4. Frequent and Actionable Reviews

Employee performance review tools can be used to conduct actionable, periodical, and meaningful employee evaluations. Conducting these through software tools can rightly point out the contributions of each employee, through the tests that are available on the platform.

The employees can be tested periodically on their skills and abilities to sharpen them and aid the upcoming appraisals. Test links can be automatically sent to the employees, team by team, and a standardized performance assessment can be conducted.  

5. Customizable Performance Evaluation Criteria

Each department has its own way of conducting employee assessments. Hence, customization is an important feature. Employee assessment software entails the feature of customizing the test questions according to the needs of the evaluation criteria and schedule. The departments like purchase, product, marketing, and customer support can effortlessly mold the assessment templates to fit their needs. 

6. Automated Reminders and Notifications

An employee assessment software lets you fix the method and periodicity of the assessments according to your schedule. You can set automated reminders and notifications for conducting the evaluation processes and also during the times of the assessment tests that will be carried out. 

7. View Employee Goals in a Single Status Report

An advantage that these tools offer is that the managers can see the status of employee goals in one place. Within the space of the performance review software, all the goals of the team as well as individual employees can be viewed together. With the automated reminder features, proper notification will be sent to all the employees notifying them of comments or goal status changes or updates. 

8. Collect Feedback from all the Right Sources

The assessment tests in the software are simple and meaningful, giving the necessary insights into the performance of the employees. It enables the manager to accurately suggest areas of improvement and also detect professional development opportunities and ideas. 

9. Get Deep Insights of Employee Performance

The results of the employee assessment conducted on an employee assessment software are given out as reports that are simple, visually appealing, and easy to understand. The software will offer an in-depth understanding of where the employee stands on a performance scale. The efforts, participation, and engagement of each employee can be easily accessed and assessed using the platform. 

10. Simplified and Streamlined Employee Evaluation Process

The first and most important advantage an employee assessment software offers is the streamlining of the employee evaluation process. The software offers essential tools that enable the proper conduction of the review process without any interruptions or delays. 

11. More Transparency

With increasing transparency in the process, there is more trust built between the employees. This further nurtures open communication and a proper line of responsibility and accountability within the process. Hence, employee productivity and satisfaction are also enhanced. 

12. Increased accountability and job satisfaction

Tracking and assessing employee performance becomes a more systematic process that improves the accountability of the team members. Once the assessment is completed, the managers will be able to set concrete goals and expectations for the employees. This will aid in regular feedback sessions and also facilitate the performance appraisal as well. Employees are empowered to perform to their maximum potential as a framework is given to them, that is, they have a clear set of goals and levels to achieve. 

What to Look for in an Employee Evaluation Software Tool

It is always suggested to do some basic research before you choose a tool for your organization. Most of the time, the objectives of the process, the goals of the organization, and the tools that you choose to operate with do not align. To avoid such risks, it is ideal to evaluate and rank your options on the following basic features. 

Employee Performance Dashboard

When HR managers are looking for employee assessment software, make sure that the tool consists of employee performance dashboards. On this dashboard, the timeline features of the employees will be available. With such a feature, the managers can mark and appreciate milestones, and simultaneously view employee progress as well. 

Document Storage

The reports and analytics generated after assessment tests must be available on the software which can be accessed for later reference. The tool that you choose should allow you to upload and save the evaluation results. The stored evaluation reports can be used to study the improvement levels of the employees during the next evaluation or performance appraisal period.

Data Security and Data Privacy

The software that your organization chooses must be able to provide you with data security and privacy. Choosing software that offers you the provision to control who has access to your data is essential. The platform that you go for must be secure. To ensure this, look for features like data encryption, authentication of users or multiple users, and set access restrictions so that employee data and reports are kept confidential and safe. 

Easy Communication

Performance appraisal software should be a platform that enables easy communication between different stages of the assessment process. Status updation is an important feature to look for. With this feature, feedback can be instantly given to the employees on their performance in the assessment. 

Integration with HR and Payroll Software

Integration is the most essential feature any employee assessment software must have. Integration enables seamless ongoing of the process. Certain data or information needs to be collected from different applications like the HR and payroll software. Without integration, the managers have to separately access the data from an outside source. Using integration, external data can be collected without leaving the employee assessment software application even once. 

Performance Review Templates

An employee assessment software should entail performance evaluation and review templates that would help the HR managers conduct the performance evaluation with ease. An additional advantage is that these templates must be customizable. The employee assessment software that you choose must be flexible, scalable, and inclusive. Every department in the organization must be able to customize to meet their needs and demands according to the trends in the industry. 

Customizable Evaluation Criteria

There are cases where certain evaluation criteria might not fit the current standards or expected performance, hence, the criteria in the templates must be customizable which will make the assessment process more flexible. 

Easy to Use 

For the software to be less complex and easy to use, it is ideal to go for tools that have features like integration and customization. 

Mobile Adaptability

Mobile compatibility is a crucial feature to look for, that will help to maintain the continuity of the process. Therefore, look for evaluation software that will allow the users to work from any time anywhere. Supporting a mobile application is a must.


Cost–efficiency is an important parameter to take into consideration. Most often, some software might have more additional features that are not necessary for all employee assessment types. Due to this, the software can be expensive too. Before finalizing the assessment tool, check for the necessary features only, and spend your budget accordingly. 

So, how much does employee evaluation software cost? Generally, the price of such software varies greatly depending on the providers and it specifically depends on the number of users and the available features. These tools roughly range from $6/user/month to $20/user/month depending on the market value of the product. 

Different Types of Performance Review in Employee Assessment Software

For an all-encompassing reach to the skills and talents of every employee, organizations use multiple types of assessment methods that are available on the employee assessment software. Here are the common methods of employee performance review methods. 

1. 360-degree Feedback

In a 360-degree feedback type of performance evaluation, the reviews from every factor around the employee are collected. The results are generated from the views of managers, colleagues, and all the other staff members in the organization. It is an all-encompassing evaluation method that gives a comprehensive understanding of each employee’s performance. 

2. Employee Self-assessment

Employee self-assessment is the type of employee performance evaluation where the employee self-assesses their performance. Some tools allow employees to evaluate their performance based on their skills and qualifications. 

3. Manager Performance Appraisal

Not only the employees who are team members but the team managers also have to be evaluated for their performance. In a manager performance appraisal evaluation process, the team members are asked to give their honest feedback on their manager that will aid the organization in organizing improvement plans for the managers. 

4. Project-based Evaluation

In a project-based evaluation, the performance evaluation does not wait for review cycles. Once a project is done and wrapped, employees are given the necessary feedback regarding their performance in the project. This is essential as they are given more and more improvement opportunities. 

Top 5 Employee Assessment Software to Explore

1. SkillRobo

SkillRobo is an online Employee Assessment Software popularly known for its user-friendly interface. It is one of the platforms that is fully equipped with the highest-quality testing elements for both employee performance assessment and appraisal, as well as pre-employment assessment tests enabling organizations to acquire and retain the right hires. The platform offers in-built and customizable templates for the assessment tests, covering 100+ industries. SkillRobo’s outstanding features let you effortlessly handle the evaluation tests making them seamless and consistent for its users. 

As an employee assessment software, it provides comprehensive yet accurately measured reports on employee performance. As an effective online tool, the software can be operated from anywhere anytime, and integrated with multiple eternal sources and applications. The instant analytical reports produced enable the HR managers to gather supportive and goal-oriented feedback. 


  • From $99/month
  • 14-day free trial available

2. PerformYard

PerformYard is again one of the most preferred employee assessment software. It is best suitable for streamlining the performance management process. The focus of the platform is to offer a seamless conduction of the employee assessment process. Using this platform, HR managers can develop effective evaluation strategies and give the best experience to the employees while in the assessment. The tool allows the employees to have valuable and impactful feedback regarding their performance. Integration is one of the strongest suites of PerformYard. Multiple types of employee review methods, allow the users to give continuous feedback and also suggest future goals to their employees. 


  • From $5 – $10/user/month
  • Free demo available

3. Lattice

Lattice has created its own space in the medium and enterprise level of businesses as one of the popular employee assessment software that offers effective employee assessment solutions. Through this platform, organizations can conduct effortless performance management, employee engagement, and skill and talent development. The platform allows the complete automation of the process and enables the effective achievement of goals and objectives oriented with the evaluation process. In this tool,  the feedback system is two-way in nature. The feedback is not only given to the employees but feedback is also collected from them using features like eNPS (employee Net Promoter Score), Pulse, and automated onboarding surveys. 


  • From $8/user/month
  • 14-day free trial available

4. HiBob

HiBob, a Human Resources Information Systems (HRIS), is architectured for growing companies and startups that are required to conduct employee performance reviews more frequently. It is a simple and easy-to-use performance and feedback tracker whereby by using the high-quality HRIS users can find the right employee to assign a particular work. Through the online performance evaluation process offered by the platform, the extreme delays caused by inefficiencies are removed effectively. Two outstanding features this platform offers are the extremely simplified approval cycle and easy integration with external applications. 


  • Sign up for the pricing
  • Free version and free trial available

5. Leapsome

Leapsome is an employee assessment software that allows a seamless flow of the review process that ultimately results in progress and performance enhancements. This tool is best suitable for startups and small businesses that are looking forward to developing rapidly in their respective industries. Some of the essential features Leapsome offers are employee performance tracking, employee engagement analysis, and 360-degree feedback. Leapsome is one of the most adaptable and scalable platforms that organizations of any size can rely upon. 


  • From $6/user/month
  • 14-day free trial available

Final Note

We can assure you 100% that leveraging employee assessment software is never a waste of time, energy, or money. It is one of the many best ways where your organization can easily work on building a strong team through a seamless online employee evaluation. Through employee assessment software, the HR managers and the team managers of your organization have more control over the process and can mindfully navigate the team members in the right direction. These tools have great potential to assess the performance of the workforce in detail and give impressive reports on the evaluation.

Our platform SkillRobo caters to cross-departmental functionalities, as well as multiple industries with its wide spectrum of assessment tests. Erase the redundancies and worthless tasks and enjoy an optimized review process with SkillRobo’s employee assessment software. It is the best option any organization can completely trust.

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