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Which is the Best UK Performance Management Software for 2025?

Is it time for you to update your performance management process but you are not sure whether to start? The reality is that the HR Software market is crowded and can be confusing and let’s be honest it’s about understanding what you need to find the right performance management software for your business now and for the next few years.

Selecting the Best Performance Management Software

The performance management software marketplace in the UK has become increasingly complex with the influx of overseas performance review tools and HR Software giants buying up the smaller boutique operators. Not only is the marketplace complex, but it is also crowded and it can be really challenging to compare one system with another.

At Actus, we understand that it is incredibly challenging to compare and contrast different performance review tools so we have put together a few pointers to help you understand whether Actus could be the right performance management software for you. We are not perfect for everyone, but as one of the few remaining independently owned and UK based HR Software solutions, we feel that we have a few differentiators that you may like to know about. Please read on to understand more or you could skip right over now to take a look at our performance management product page or book a chat or demonstration here.

Performance management software evolution

Actus entered the UK performance management marketplace in 2012, our founder Lucinda Carney is a Chartered Psychologist with many years experience within Corporate HR. Her passion was and continues to be around developing a culture of continuous feedback as it is clear that this, combined with goal setting is a key driver of employee performance. At that point performance management software solutions were thin on the ground and most performance review processes were manual and dated. Actus was designed, from day one to be forward focused, all about continuous feedback and with a focus on generally improving the management behaviours around the performance management process. The goal being to increase employee performance and retention through better employee engagement.

Background

Since 2012, the expectations of hr professionals around functionality and usability have significantly evolved. Much of this shift has been driven by the rapid advancement of digital technology, great focus on being able to track progress on performance metrics and report on key employee data. Similarly, HR software has undergone vast changes, with priorities oscillating between employee engagement, talent retention, diversity and inclusion, and learning and development. We won’t dwell on the impact of Covid but there is no doubt that performance management tools can play an important part in talent management. Ideally, systems should enable managers and employees to track performance and stay connected in a hybrid working environment – again embedding continuous feedback, even when not face to face.

Now

Today, most organisations require a performance management system that is flexible and adaptable to address a range of needs over time. The key is to understand your current priorities while selecting a system that has the potential to grow with your business in the years ahead. You may want to start with simply automating your employee review process, but if you can automate other HR Tasks like succession planning, managing training and compliance or managing reward and recognition then you can future-proof your investment for the long term.

Actus: A Complete Performance, Talent, and Learning Platform

Actus has evolved significantly over the past 12 years to offer much more than just goal setting and appraisal software. Initially focused on employee performance management, the platform is now a comprehensive hr platform designed to improve employee performance and support clients in generating a positive workplace culture:

Talent management
Learning and development
Employee engagement tools
Compliance and Governance
360 degree feedback and survey
Flexible integration capabilities

Unlike larger HRIS providers that rely on third-party acquisitions to expand their software ecosystems, Actus has developed these modules natively within its platform. This means that all features are fully integrated, providing a seamless experience for users.

Key Benefits of Actus Performance Management Software:

  • Flexibility – Highly configurable, comprehensive performance management platform with an intuitive interface that supports goal setting, employee feedback, learning and development and of course employee performance reviews.
  • Continuous performance management – Designed to encourage year round conversations with one to ones and encouraging continuous feedback
  • User friendly interface – Actus offers a straightforward user experience with powerful performance analytics in the background that provide HR with actionable insights
  • Scalable – Streamline business operations and reduce supplier costs through add on modules such as learning management, talent development, succession planning, 360 degree feedback and compliance monitoring.
  • Flexible integration capabilities – Streamline hr processes by integration with your HRIS platforms through API or SFTP
  • UK-Based Support – Direct access to customer service teams for personalised assistance helping you to maximise organizational effectiveness

The Role of Customer Support in Software Success

A common issue with large-scale HR platforms is the lack of personalised customer support. Many companies rely on chatbots or outsourced help desks, leaving HR teams frustrated when they encounter implementation issues or require customisation assistance. Actus has an award winning support desk and a dedicated Client Success team who work closely with every customer from implementation and throughout their lifecycle to ensure they get maximum value out of the performance management software.

Actus takes a different approach by offering:

  • Dedicated UK-based support teams
  • Bespoke training and onboarding assistance
  • Ongoing customer success management

This ensures that organisations get the most out of their investment without the frustration of dealing with impersonal support systems.

Why Actus could be the Best UK Performance Management Software for you in 2025?

When choosing a performance management tool, UK businesses should consider long-term value rather than short-term fixes. Actus provides a comprehensive, future-proof solution that adapts to changing HR priorities without forcing companies into expensive, enterprise-level contracts.

By investing in a configurable, fully integrated system, businesses can streamline performance management while ensuring continuous employee development, engagement, and compliance. We are flexible and customer focused, many of us also have an HR Background so there are no high pressure sales tactics. Why don’t you get in touch and have a chat with one of the team?

The Impact of AI on Performance Management Software

No discussion about the best performance management software would be complete without considering Artificial Intelligence (AI) and its increasing presence in HR technology. AI-powered features such as automated analytics, performance trend identification, and intelligent feedback tools are becoming more common.

However, while AI can streamline some processes, it is essential to question how meaningful these features are for your specific business needs. Do you need AI-driven performance insights, or are you simply looking for a platform that supports structured goal-setting, appraisals, and development?

Finally, one crucial aspect to consider is the balance between automation and human support. As AI-driven chatbots and self-service implementation become more common, organisations must decide how important it is to have direct access to human customer support when implementing and managing their performance management software.

The Actus AI Roadmap

We are already investing in AI tools within Actus, we see it as being really helpful in educating managers and employees in writing SMARTER goals and are developing a Goal Library. It is also possible to improve employee evaluations with suggestions for quality feedback and constructive wording within performance appraisals. HOWEVER, we also believe really strongly that a quality performance evaluation process should be predominantly human focused. Therefore we also provide lots of built in educational tools like our recently launched Actus Assist for managers and employees. This helps them to personalise their performance appraisal process rather than make it seem generic and robotic

Understanding Your Business Culture and Needs

To choose the right performance management software for you, start by evaluating your company culture and what your priorities need to be. Whether you need to focus on increased employee engagement, building high performing teams, more effective employee management or rolling out a fair evaluation process, you are going to need some form of hr management software that can adapt to these requirements. Not only that, it is going to be just as important to track key performance indicators, nurture employee growth, monitor progress and most importantly have the tools for data driven decision making.

Where to start?

AI may be on the horizon but why not start by simplifying tedious HR tasks like reducing manual data entry of employee performance data as an early priority. Next steps may be redesigning your employee performance management process to make it more holistic with a clear focus on continuous feedback. To make that work, it is helpful if you invest in your people managers, ensuring that they behave in a way that encourages employee engagement. This means they provide clarity of expectations, hold consistent and meaningful one to one’s and check in’s and their approach to managing employees makes people feel valued.

Once you have the right management behaviours and performance management process established, it can be a great idea to focus in on employee development, talent management and/or succession planning which can be a powerful tool for employee engagement and retention. Finally, reporting is invaluable, make sure that any system you look at offers flexible dashboards and reporting on performance analytics.

For example:

  • A high-tech, fast-moving business might benefit from gamification features and interactive dashboards to engage employees.
  • A more traditional organisation may require a platform that emphasises structured performance management, learning, and compliance.

Regardless of industry, the best solution should be able to adapt to your needs rather than forcing you to conform to rigid, pre-set processes. Configurability and flexibility are crucial.

Thinking Strategically About Functionality

Many businesses select performance management software to solve an immediate need, only to realise later that new requirements emerge as HR priorities shift. Investing in a scalable and modular platform ensures your organisation does not need to switch systems frequently, which can be time-consuming and costly.

Some of the largest HR Information Systems (HRIS) have built extensive performance management ecosystems by acquiring smaller companies in a bid to streamline hr processes. Unfortunately bolt on performance management tools rarely provides a great user experience. Even though the systems have been integrated behind the scenes, it can be difficult to provide a seamless performance management platform that is truly going to maximise individual and team performance. Instead, much of the investment in buying a smaller performance management software business has to go into integration capabilities rather than providing great value and an excellent user experience.

What’s Best for Medium and Smaller Businesses?

Medium-sized and growing smaller businesses share many of the same challenges as large enterprises but often have more limited budgets and rapidly shifting HR priorities. This can lead to:

  • Frequent switching between different systems as priorities evolve.
  • A fragmented HR tech stack with overlapping tools and no centralised reporting.
  • Increased administrative burden for HR teams managing multiple platforms.

Without a long-term strategy, companies risk wasting valuable time and resources on platforms that do not fully support their growth. A better approach is to invest in a scalable, fully integrated platform that can adapt as business needs evolve.

One critical aspect of performance management for small and medium-sized businesses is the choice of employee evaluation tools. Different industries require different approaches to performance management. Some businesses focus on structured annual reviews, while others prefer continuous performance tracking and feedback mechanisms.

Professional Services & Corporate Firms:

These businesses typically rely on competency-based performance reviews, which assess employees against a set of predefined competencies. This method ensures that employees develop the skills needed to progress within the organisation. Tools like 360-degree feedback surveys, individual development plans (IDPs), and self-assessments are commonly used.

Financial Services:

This industry places a strong emphasis on compliance, risk management, and continuous professional development. Performance management tools need to incorporate compliance tracking, audit trails, and learning management systems (LMS) to ensure employees meet regulatory requirements. Features such as certification tracking, automated compliance reminders, and robust reporting are essential to ensure that employees stay up to date with industry standards and risk mitigation measures.

Retail & Hospitality:

Fast-paced industries such as retail and hospitality benefit from real-time performance tracking and instant feedback tools. Employees in customer-facing roles need frequent check-ins rather than an annual review. Performance dashboards, KPI trackers, and mobile-friendly feedback tools are particularly effective in these industries.

Manufacturing & Logistics:

Performance management in these industries often focuses on safety, efficiency, and compliance. Businesses might integrate performance tracking tools with health and safety compliance software to ensure that workers are meeting both productivity and regulatory standards.

Technology & Start-ups:

The tech industry often favours agile performance management models that emphasise OKRs (Objectives and Key Results). These companies benefit from tools that enable flexible goal-setting, peer recognition, and AI-driven analytics to assess employee engagement and productivity.

Healthcare & Education:

These sectors require competency-based and regulatory compliance tracking. Performance reviews are often tied to professional development requirements and CPD (Continuing Professional Development) tracking.

By choosing a system like Actus performance management software, which offers customisable performance evaluation tools. Businesses can tailor their the performance review cycle according to their industry and workforce needs.

Final Takeaways:

  1. Understand your HR priorities and how they may evolve.
  2. Choose software that offers flexibility like Actus rather than rigid workflows.
  3. Consider customer support and ease of implementation.
  4. Look for long-term scalability to avoid frequent system changes.
  5. Ensure compliance with UK regulations and data security best practices.

For businesses seeking a purpose built, UK-based performance management solution, with personal service Actus offers the ideal balance of functionality, scalability, and customer support. As the HR landscape continues to evolve, Actus remains committed to providing best-in-class performance management software for 2025 and beyond. Please do get in touch with us if you would like to find out more about Actus Performance Management Software.

Purple arrowComplete Performance Management Cog

 

Why not take a quick look at the Actus system tour here:

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Why not book a free demo with one of our expert team who will walk you through the Actus software:

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More useful resources

Subscribe to the Actus YouTube channel for educational HR videos, including  a 40 second explainer video about ‘How Actus Performance Management Software reporting works?’.

Read more blogs by Lucinda Carney see here.

Listen to ‘The HR Uprising Podcast’ hosted by Lucinda Carney, which has a variety of informative topics in business and HR. Visit the HR Uprising website or download wherever you get your podcasts from (YouTube, Spotify, Apple etc). Listen to episode 186 ‘How to Embed Continuous Performance Management’. 

HR Uprising Podcast episodes on Performance Management

For monthly updates on all things Actus Software and the HR Uprising Podcast follow our monthly newsletter ‘Actus Uprising’ on LinkedIn. 

 

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