People Ops picks: The best performance review software for small companies

We’ve recognized that for small businesses, the stakes can be high when it comes to tracking employee performance. Yet, the general feeling amongst SBOs is that a sophisticated performance management system is too costly, and an unnecessary luxury when an Excel spreadsheet can do the job. 

We’re here to say those days are over. Some of the best performance management software is very affordable and designed with small businesses in mind. 

Join us as we highlight our top picks for performance review software for small businesses - whether you’re 5 or 50 people, there’s something here for you. 

Key Takeaway: Today’s performance review software is affordable, user-friendly, and designed to support alignment, accountability, and growth. By examining the top 5 small business performance review tools recommended by People Ops, you will find a platform that works for you. 

Why small business need performance review software

The short answer? When you’re a small business, alignment and visibility of performance metrics matter. 

But isn’t this software overkill for a small business?

We hear this a lot. Sure, an annual review pulled together from bits and pieces of data may be fine initially, but what about when those manual processes break down, and you’re left scratching your head about what you can do?

As an SBO, investing in the right tool can:

• Create accountability and clarity around company goals and performance expectations.
• Facilitate continuous feedback, thereby improving employee performance quickly.
• Support employee development with coaching and goal tracking.
• Provide the platform for automated 360-degree feedback, peer feedback, and engagement surveys.
• Save time by tracking performance trends.
• Streamline performance appraisals by creating a centralized platform for managing employee performance. 

📘For a deeper dive into the issue of the right balance when it comes to performance reviews, check out 👉Too much or not enough? How often should performance reviews be conducted?

The right performance management program for your unique business depends on your size, culture, the kind of technology you like, existing processes, and how you want to conduct the employee evaluation process. Here are our top picks from the People Ops experts - designed especially for the small business. 

5 Top performance review software for small companies

1. Simpleperf by BuddiesHR

Best for: An all-in-one employee engagement platform that includes performance management features.

Website: BuddiesHR.com

Pricing: $0.8 per employee per month (2025 pricing)

Reviews: Rated 4.8/5 on G2.com

Why we love it:

BuddiesHR has developed the perfect app for small businesses. Easy to set up, easy to use, it’s perfect for first-time users. Simpleperf comes with default templates, but can be customized to suit your unique business. 

The built-in AI improves the quality of your inputs without bloating the features - it's exactly what small teams need to get going quickly, and enter into a performance management process that’s powerful and delivers useful performance data.  You also have the flexibility to amend review cycles and forms when needed, yet it's about 3x cheaper than the alternatives. 

Latch on to the entire suite of apps for a complete employee engagement system on Slack, which is interactive, increases visibility of every aspect of the performance lifecycle, and can even track paid time off.

People Ops insight:

Over +1000 small and medium-sized companies use BuddiesHR apps for running their HR processes. If you want to simplify performance management without bloated features and enterprise pricing, pick BuddiesHR. 

Curious how you can prepare for a performance review as a manager, using BuddiesHR? Check out: How to prepare for a performance review as a manager: Beginner’s Guide

2. PerformYard

Best for: Flexible, AI-enhanced performance management software to streamline employee reviews, goals, feedback and engagement.

Website: performyard.com

Pricing: $5-10 per person/month (2025 pricing)

Reviews: Rated 4.7/5 on G2.com

Why we love it:

Built for People Ops in mind, PerformYard is geared for giving the pros highly customizable performance reviews, check-ins and goal management. You can create unique templates and review types (360°, top-down, self-assessments), automate reminders, and collect feedback without complicating things for your team.

The key features are automated workflows, custom review forms, performance analytics, integration with Slack and Outlook, and task management functions. 

People Ops insight:

PerformYard is powerful under the hood but keeps the employee-facing experience simple. A great fit for teams with varying review styles or roles. The performance management features are adaptable for a wide range of industries. 

3. Leapsome

Best for: Combining goal-setting with a learning management system.

Website: leapsome.com

Pricing: Customized quotes depending on the products (2025 pricing)

Reviews: Rated 4.8/5 on G2.com

Why we love it:

Leapsome is an all-in-one platform that connects performance reviews, feedback, goals, and learning paths. That’s a powerful combo, especially for companies building a strong culture of growth.

The system integrates with Outlook, MS Teams, Jira, Salesforce, and Slack, to name a few. This makes it a great complement for teams already using these platforms as part of a performance management strategy. 

The performance management features that small businesses will love for their performance review process are flexible templates, question banks, and completely automated performance evaluations. 

People Ops insight:

If your company values the ability to easily track progress and collect performance feedback, then Leapsome is a good choice. 

4. Small Improvements

Best for: Startups wanting fast, feedback-driven reviews.

Website: small-improvements.com

Pricing: Starts at $3 per month/per user (2025 pricing)

Reviews: Rated 4.3/5 on G2.com

Why we love it:

Small Improvements line up with its name - it’s a lightweight performance management tool designed for modern, lean teams. You can run reviews, request feedback, and give praise in just a few clicks.

Gather information for employee performance evaluations quickly while managing feedback mechanisms and inviting managers and employees to participate in engagement surveys. Easily sync overall team performance data with Slack, BambooHR, Personio, and Rippling integrations. 

People Ops insight:

For startups or early-stage teams that want performance structure without bloat, Small Improvements is a no-fuss, high-value option.

5. BambooHR

Best for: Startups and small businesses wanting meaningful and engaging performance reviews.

Website: bamboohr.com

Pricing: Three plans available (Core, Pro, Elite). Based on a customized quotation. (2025 pricing)

Reviews: Rated 4.4/5 on G2.com

Why we love it:

BambooHR stands out as a lightweight performance review solution that is polished and great for goal tracking and customizing review cycles. Managers can schedule recurring check-ins and reviews, and link feedback to team goals. It's especially suitable for teams that want performance management built into their existing HR workflows. 

Key features include:

• Customizable review cycles.
• Goal-setting and real-time performance tracking.
• One-on-one meeting check-ins.
• Feedback prompts and performance benchmarks.

People Ops insight:

For startups or small teams seeking structured yet nimble performance review tools without adopting a heavy enterprise system, BambooHR offers a seamless HR platform. As your needs grow, you’ll already have your HR database and onboarding workflows in place.

How to choose the right tool for your team

When selecting performance review software, consider the following questions. These will help you to crystallize the most appropriate tool for your business’s culture, unique review process, and organizational objectives. 

1. Review frequency

Will you be running an annual performance review or aligning with current trends that call for more regular reviews in the form of check-ins, monthly reviews, and informal updates?

2. Built-in engagement tools

Do you need engagement surveys, OKRs, or development goals? (If so, consider BuddiesHR or Leapsome.)

3. Team size and growth plan

Choose a tool that fits now, but that can scale as your business grows. This will avoid changing systems as your business grows. 

4. How comfortable is your team with tech?

If your team is slowly coming to grips with new AI advancements, prioritize user-friendly interfaces (like BuddiesHR and Small Improvements). If your team is super tech-savvy and can handle more complicated systems, then PerformYard could be a good choice. 

📘Need some more options? You’ll find them in: What are the best performance review software options available, and how do you pick the right one? Here you’ll also find a FREE scorecard listing all the features your software should have. 

How to roll out performance software solutions

Choosing the right software is only half the battle. Getting your software successfully implemented is the other half. The pros at People Ops recommend the following steps for small businesses:

• Start with a pilot group (or three team members if you’re really small), and get them to test templates, workflows, and employee surveys. 
• Train everyone on the new system - from managers to HR teams (for bigger companies), and do frequent check-ins to see how it's going.
• Let everyone know the ‘why’ behind the implementation. Focus on the results and positive benefits to be gained from introducing technology to manage the review process. Deal with any concerns that are raised immediately. 
• Customize the tool to reflect your company values by using appropriate language to set employee goals, conduct employee engagement surveys, and give performance reports. Make the software sound like one of you. 

Final thoughts

Small businesses need performance review software just as much as larger companies, and in fact, even more so. When you don’t have many resources, and everyone performing at their peak is critical, then you need a system to help you understand the contribution of your employees to your organizational goals.

Trying to get the bigger (and clearer) picture by using disconnected platforms and spreadsheets is not the most effective way of managing performance - and has never been - which is why so many companies say that their review processes aren't working. [1]

If you’ve run out of patience with archaic HR processes and want to get started with something better right away, then our recommendation is Simpleperf. It’s perfectly simple and easy to use, and even first-time managers can run a review by the end of the week with its help.

References:

1. https://hbr.org/2016/10/the-performance-management-revolution