How to Develop Custom Performance Management Software?

Updated on Apr 18th, 2024

How to Develop Custom Performance Management Software?

Employee engagement and customer satisfaction are the two main facets of the business that impacts its overall success. While the latter can be achieved through various means, achieving the former requires great analysis. That’s where custom performance management software comes into play! 

Evaluating the employee’s performance, receiving feedback from their managers, and working on the suggestions offered are some tasks automated by employee performance management software. Besides that, getting frequent recommendations by employees for a streamlined workflow and appreciating them for specific tasks are other functions of a custom performance management system.  

Well, we believe you know that, but what you don’t know is how to develop custom performance management software for your business! That’s what we will discuss in this blog.  

Today we will list the complete steps required for performance management software development. Explore everything in our quick guide, from features and tech stack to market scenarios and development process. 

  • Only 14% of the businesses are satisfied with their legacy performance management system. Rest companies are seeking a smart performance management solution.
  • Performance management software offers many benefits, such as tracking working hours, easy reimbursements, digital achievements, and asset allocation.
  • You must carefully examine your business operations to understand what areas need improvements and what features can be beneficial for your organization.
  • Features like compensation management, social integration, employee reviews, and appraisal feedback must be present on your performance management software.
  • You should partner with an experienced software development company that has delivered a similar solution in the past. Look for its portfolio to decide the best one.
  • Remember to test your solution as it eliminates the chances of future bugs and glitches.

How to Get Started with Performance Management Software Development?

How to Get Started with Performance Management Software Development?

Understand Your Business Requirements 

The first step for a successful performance management software development is to analyze your business goals. You must understand your business concerns and how a custom performance management software will solve them.  

For instance, in this particular case, you might have concerns like: 

  • You are unable to find the KPIs of your business. 
  • Your employees find it difficult to manage their achievements. 
  • There’s too much paperwork for your HR team to analyze the team’s performance. 
  • There are risks associated with the manual process that you are using. 

Once you have identified your business concerns, you will clearly know what steps should be taken next. You will have a well-framed business strategy that could resolve your problems and lead you to a profitable business! 

Market and Competitor Analysis is Necessary 

Besides understanding your business requirements, market and competitor analysis is another factor in developing employee performance management software. We live in a digital world where things change rapidly. We see innovations every now and then, whether it be the development tools, customer demands, or even technologies. 

Hence, it becomes critical to analyze the market to ensure an in-trend software development. In the case of a performance management system, you should check what things are trending.  

For instance, a chatbot could resolve the common concerns of your employees without human supervision. Apart from that, an automated attendance module and integration to asset management software could also help you streamline your HR operations.  

Hence, you must invest in online surveys or research strategies to uncover the best market trends for your enterprise software development. Besides that, also know hope your competitors are doing in the same niche.  

Another option is to leverage the free competitor and market analysis services Matellio. Fill out our consultation form to get started today!  

Hire an Experienced Software Development Company 

So, you now have an idea about your custom performance management software. But what should be your next step? Indeed, it will be to develop employee performance management software!  

But to do so, you will need an experienced development team that can create a custom performance management system tailored to your business needs. 

For that, selecting a reputed enterprise software development company is essential. Why? Well, there are many reasons to go with an experienced performance management software development company. To name a few, we have: 

  • An experienced company will know the latest market trends that can build success for your project.  
  • You will have access to an experienced team of developers ranging from consultants and UI/UX designers to software developers, cloud engineers, and even testers.  
  • You can easily scale your development team as per your project needs. That is at least possible with Matellio!  
  • Even once the solution is deployed, you can still leverage the post-launch support required for your project. 

Not to mention, cost-effectiveness, access to next-gen tech, and on-time development are a few more perks of hiring an experienced software development company like Matellio.  

Additional Read: How to Choose a Custom Software Development Company?  

Choose the Most Suitable Features 

One of the things that can greatly impact your performance management software development is its features. You need advanced features to stay competitive and resolve your business issues. 

Only a solution with user-friendly and advanced features can help you and your business in the long run. However, one needs to analyze the current market trends to identify those features. That’s why we are listing the most crucial features for your custom solution as a leading performance management software development company. 

Create Milestones 

You should allow your employees to create various milestones and goals that are to be achieved on a daily, monthly, and project basis. These milestones should have a clear deadline and elaboration of various tasks. Besides, also make sure to send these milestones to the managers and upper management for further evaluation.  

Appraisal Meetings 

Many a time the HR managers and employees need to connect on a different platform for one-on-one meetings which makes it difficult to access real-time information. Hence, your custom performance management software should have dedicated online video conferencing features to enable you to conduct seamless virtual meetings.  

Employee Feedbacks 

Employee feedbacks are very important in running a successful business. It would help if you let your employees put their thoughts on various processes, including evaluation, project requirements, and other business aspects.  

Besides, you should also have an option to take anonymous feedback and suggestions from your employees regarding any specific HR policy. That’s how trust and employee satisfaction will increase in your organization.  

Custom Check-ins 

Evaluating the working hours of your employees to know their productivity rate is quite important during performance evaluation. However, there are certain times when an employee forgets to check in or check out during a particular day.  

Besides, overtime and leaves also impact its working hours. Hence, your employee performance management system should offer custom check-in and check-out option for your employees. That should also be verified by the HR managers.   

Leave Management 

Leave management is without a doubt the most critical aspect of the HR department. All the companies have specific leave plans framed for their employees. Hence, during performance evaluation, you should be aware of how many leaves, and what type of leaves your employees took during the year.  

Have they exceeded their leaves? Or are they performing well? Answer to all these questions will help you properly evaluate your employee’s performance. You should also integrate your business’ email module with the leave management feature.  

Awards and Recognitions 

Awards and recognition are the souls of any business. They help the employees to feel valued after their hard work. However, the current pandemic made us realize that it is not always possible to recognize our employees’ work physically.  

Hence, your custom performance management software should have a digital recognition and award section where managers can praise their teammates using special certificates and badges. Whether annual wards or just a small recognition, a dedicated module will help employees feel special and will motivate them to perform better.  

Social Sharing 

That one is extremely important. Your employees should be able to share their awards and certificates online. That will not only encourage them to perform better but will even act as a free marketing channel for your brand.

More and more people will identify your company on a global platform and people will be keen to join your business. That will eventually become a boon for your HR team.  

Develop, Test, and Deploy Your Performance Management System 

Lastly, you need to develop, test, and deploy your custom solution on your choice of platform. However, before deploying, you must test your digital product to ensure its effectiveness. With testing, you can identify and resolve the glitches that were left unidentified during the development process.  

Every feature, design element, and performance of the custom solution can be checked using testing services. You can make final changes to your product to ensure it works efficiently on every device. Once the testing is done, you can deploy your solution on the cloud platform. Read more about the AWS cloud platform and its benefits for your business 

What Other Factors to Consider for a Successful Software?


Now that you have discovered the complete process required to develop a custom performance management system, you will probably start immediately! However, there are some factors that you should consider to create a successful and business-oriented solution.  

Agile-DevelopmentAgile Development 

The agile development methodology makes it easy for you to track the changes made to your custom software. Right from the beginning to the end, you get constant updates on your performance management software after every development stage. Even if you want to make changes, you can do so at any stage without going back to stage 1.  

That eventually means you could save a huge development time and cost. Besides, you could also save your testing cost as the product will be developed according to your expectations and requirements. Hence, always choose a software development company that follows an agile methodology to build your custom solution. 


Besides features, if there’s anything that can impact your software development, it’s UI/UX. To those new to the software development market, UI stands for the user interface, and UX stands for the user experience.  

In short, these two metrics inform us of how accessible your solution is for your users. If your users can access your solution and know where each feature would take them, it will have a high user experience. Hence, always choose the best UI components for your custom performance management software. 

You must hire the best UI/UX designers for your performance management software development.  

Read More: Top 7 Tips to Hire UI/UX Engineers for your Project 

Automated-ToolsAutomated Tools 

The main objective of implementing performance management software in your enterprise would be to automate your employee evaluation and appraisal tasks. In such a condition, you must ensure that your digital product has all the relevant automated tools to help you achieve your development goal. 

Whether using next-gen technologies like AI, ML, etc. or integrating third-party plugins to your web app, you must have the dedicated tools to facilitate automated operations. Hence, always choose a company with experience in integrating such automated tools into your custom solution. You can even check out their portfolio to know whether they have worked on a similar solution or not!  

Employee-TrainingEmployee Training 

Any solution can only be successfully implemented if it is welcomed by your target audience, which in this case is your employees. If your employees are not comfortable or properly trained in a custom performance management system, it will not affect your business.  

Hence, as a leader, you should ensure proper employee training. Your managers and other employees should know how to track their performances. They should be aware of the appreciation badges you award digitally on the same solution.  

Expert-ConsultationExpert Consultation 

Lastly, expert consultation is vital to ensure success for your enterprise performance management software. You will have various brilliant ideas for your custom enterprise solution. However, we live in a world where things change rapidly, so you need to check the feasibility of your ideas. 

Only the best ideas that can help you, in the long run, should be applied to your digital product development. That’s where expert consultation comes into play!  

You can easily prepare the best business strategies with industry experts. Hence, always go for a company that offers consultation services. You can click the link below to book a free consultation with our experts at Matellio! 

enterprise performance management software development

How Can Matellio Help with Performance Management Software Development? 

With a decade-long experience in enterprise software development, Matellio is a one-of-a-kind software engineering studio offering innovative services to enterprises worldwide. Whether expert consultation, market analysis, competitor research, MVP development, or UI/UX services, you get a comprehensive software development package for your enterprise solution.  

Besides that, we also offer next-gen tech integration, cloud computing, and testing as a part of our enterprise software development service. Our talented team of developers carefully analyzes your business requirements and frames an effective strategy facilitating a smooth digital transition.  

You can book a free consultation with our experts right away! Fill out our consultation form and get a no-obligation quote for your custom performance management software today!

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