Performance management software. What does it cost and what does it provide?

by Danique Geskus | Sep 27, 2023

HR Performance management software is a term increasingly used in the HR field. But what is actually meant by it? Performance Management is a measurement and management method that helps define organizational strategy and achieve goals. Performance management is all about aligning employee performance and development with the organization’s goals. In this article, you’ll learn more about performance management software costs but more importantly, what it delivers.


Investing in HR Performance management software

Purchasing performance management software, like purchasing any type of software, is not just an investment in money. Preparation for the purchase requires time and can take up to several months. By looking first at the problems in the current HR cycle and then at the needs and requirements of new HR software, you have enough information to choose a software vendor.

Implementing new HR software, not to mention adopting the software, also takes time. The success of any new system hinges on its embrace by the user. Furthermore, performance management requires a lot of discipline. Discipline in setting goals and outcomes. And in tracking progress and then making any necessary adjustments to processes and employees.


Different types of HR performance management software and prices

There are 2 types of Performance management software:

1. Reporting tool (AFAS or SD WORX).
The advantage of this is that you are building a digital file for each employee. The disadvantage of such a tool is that there are often no built-in feedback capabilities and and does not provide an ongoing dialogue between employee and manager. Price range of this tooling is approx. €2 per employee.

2. Complete performance management solution (Learned).
This new generation of software provides a complete solution that digitizes and replaces the entire HR cycle in the form of a continuous dialogue between employee and manager. These modern and quality development conversations increase employee engagement by up to 280% compared to employees who do not have conversations with their managers. This translates into higher productivity of up to 26%(Gallup 2017 survey)

Performance management tools are slightly more expensive than software just for HR reporting, but offer more value.

Learned’s price range is $4 to $6 with volume discounts starting at 100 employees. Learn more about the package that suits your organization here !


The benefits of performance management software

Although the cost is higher, a good performance management tool offers numerous benefits beyond reporting:

  • Increased motivation through clear expectations
  • Greater visibility into a person’s performance
  • Greater focus for developing craftsmanship
  • More information that can be used (e.g., in assessing and rewarding)

Learned’s research shows that there is a large savings in time by implementing continuous dialogue. Supported with the right software, this results in time savings of 44%. Time you can use as an HR department for strategic HR projects and on the human side of HRM.


What is the return on investment of performance management software?

Assuming an investment of approx. €5 per employee per month for a software platform that supports the creation of an ongoing dialogue, the annual investment is approx. €7.200. Considering an adoption phase of the new methodology, the maximum ROI in the first 3 years will be between 1200% and 1600%.

Calculate the return-on-investment (ROI) for your organization by deploying continuous dialogue and a modern development conversation within the HR cycle. Watch the video demo or use Learned for free for 14 days.

Or immediately download the free ROI Calculator, enter the data and calculate how much time and money you can save for your organization.

Gratis downloads

Chart low and high performers with objective evaluations

Additional Resource

All resources >

Maandelijkse nieuwsbrief

Aanmelding voor nieuwsbrief voordelen