Performance management software is crucial for any business that wants to maximise employee performance. For an industry such as the hospitality sector, where high staff turnover, shift work, and the need for excellent customer service often prevail, having the right tools for managers to provide feedback and track performance is crucial.
In this article, we dive into what performance management software actually does, why it’s beneficial for the hospitality sector and provide three options to consider if you are a small to medium-sized UK business. Let’s dive into the top 3 best performance management software for hospitality businesses and how they can benefit your team.
What is Performance Management Software?
Performance management software is a digital platform that enables organisations to track and evaluate the performance of individual employees with the overall aim of improving engagement, productivity and efficiency.
In a sector such as hospitality, where high staff turnover and a critical customer experience are essential to business success, using performance management software can have a significant impact on an organisation’s overall performance.
Performance management software for hospitality usually includes features such as:
- Scheduling and organising performance reviews
- Collating continuous and 360-degree feedback
- Goal setting and tracking
- Employee engagement surveys
- Track training requirements and log certificates as required
- Visual dashboards to provide insights into employee performance
- Reporting tools
Using software to centralise all these processes supports hospitality businesses in ensuring their staff provide excellent service, which ultimately impacts business success.
How Can Performance Management Be Used in Hospitality?
The hospitality industry, which encompasses a wide range of environments, including bars, restaurants, events, and hotels, is fast-paced. There is often a high turnover of staff, and requirements can vary considerably according to peak hours, busy seasons or scheduled events.
Performance management software can support the hospitality industry within its fast-paced environment in the following ways:
- A centralised system makes it easier for managers to keep track of individual employees and how they are performing.
- The software enables organisations to track how efficiently staff are working at different points, for example, during peak hours.
- Where health and safety training and certification are essential for the business, the software can track and log training for specific employees.
- Automating and regulating the processes involved in managing staff performance makes it easier to identify high-performing employees, reward top talent and identify issues that need resolving.
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The Benefits of Using Performance Management Software in the Hospitality Industry
Using performance management software has several advantages for the hospitality industry:
- Improves performance: with a centralised system making it easier to keep track of feedback, goals and review cycles, managers can help employees change how they work and increase productivity for the whole business.
- Supports employee engagement: software that ensures feedback is embedded in the corporate culture and provides tools to survey employees and recognise good work helps improve employee engagement, which leads to better retention rates and increased productivity.
- Provides data for decision-making: a centralised system provides real-time analytics which managers can use to optimise their staffing, training and rewards processes.
- Ensures consistency in service quality: for an industry where the customer experience is key to business success, having a system which supports consistency through standardised performance assessments is key.
Real World Case Study
Understanding the benefits of introducing performance management software to a hospitality business can be best understood by examining a real-world example, such as the one shared by Empxtrack in their work with the hotel chain Baymont Inns & Suites.
According to Empxtrack, Baymont Inns & Suites faced several challenges, some of which were directly related to performance management, while others were associated with the administration of HR processes.
- Lack of a centralised system for storing employee records.
- The manual tracking of applications was creating delays in hiring new employees.
- Complicated onboarding process.
- Issues managing leave and absence.
- An inefficient performance review system which lacked consistent metrics to assess performance.
By introducing software to centralise and streamline many of the HR processes in the business, Baymont Inns & Suites were able to address all of these challenges. Specifically, in relation to the performance management of employees, introducing an HRIS (Human Resources Information System) ensured transparency, fairness, and consistency in the performance appraisal process. The platform helped managers by automating feedback requests, scheduling performance reviews and tracking training completion. It also ensured that managers set individual goals for employees that aligned with overall company objectives.
Using the performance management software built into the wider HRIS, Baymont Inns & Suites created an effective evaluation system tailored to their requirements. This system enabled managers to address performance challenges and celebrate the success of individual employees promptly and effectively.
Best 3 Performance Management Software Options for Hospitality
When it comes to choosing performance management software, there are many different options available. Some platforms, such as Factorial, include performance management tools within their broader suite of HR support, whereas others, like Lattice, focus specifically on performance management.
When we look at the three best options for performance management software for UK-based organisations, the following functions are considered essential:
- Objectives and key results
- Continuous and 360-degree feedback
- Performance review scheduling
- 1:1 meeting support
- Employee recognition
- Engagement surveys
1. Factorial – Best All-in-One Business Management Solution
Factorial is a centralised platform that combines a performance management platform with support for HR administration, time tracking, payroll and expenses management, and recruitment. It is a comprehensive business management software that is ideal for small- to medium-sized hospitality businesses based in the UK, as it supports so many of the essential requirements involved in managing employees in fast-paced environments.
More specifically, Factorial’s performance management software facilitates consistent, transparent and fair feedback loops. It allows managers to create custom templates and personalise performance appraisal workflows. Its platform is well-suited for UK hospitality employers looking to centralise their performance management to grow their team and increase employee engagement.
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Factorial’s platform supports businesses in the hospitality industry with their performance management requirements with the following features:
- Goals and OKR (objectives and key results) tracking
- Scheduling and coordinating the performance review cycle
- Tracking feedback
- Dashboard provides performance insights
- Management of training requirements and skills development
Pros:
- Scalable for growing hospitality businesses.
- Includes training support and tracking of certificates.
- Supports UK-compliance regulations.
Cons:
- Pricing gets more expensive with increasing headcount.
- Set-up and onboarding can be complex and time consuming.
Price:
- Free trial available.
- Starts at £5.40 per month per user.
- Plans are available for various businesses and budgets, tailored to the HR needs of the organisation.
2. Lattice
Designed primarily as a performance management tool, Lattice has expanded its functions to include an employee database, time tracking, and payroll. However, the primary focus of the platform is continuous performance management and employee engagement. Lattice has a large number of tools to support a transparent, fair, and robust performance management process, as well as the ability to create surveys, recognise achievements, and keep feedback regular and informal to support improved employee engagement.
The key features of Lattice’s performance management software include:
- Goal setting, including templates, and tracking.
- Performance review scheduling.
- Facilitation of feedback loops, including continuous feedback and recognition, 360 feedback and surveys.
- Dashboards and reports to identify trends, show progress and illustrate engagement metrics.
Pros:
- Designed to support larger teams with robust performance management tools
- Visually appealing and easy-to-use dashboard
- Strong focus on employee engagement
Cons:
- No free trial
- High cost per user, especially for additional tools for engagement and skills development.
- Integration with broader HR functions is limited compared to other platforms.
Price:
- US pricing starting at $11 (approx £8) per user per month for talent management.
- Add-ons $4 (approx £3) per month for ‘Engagement’ and ‘Grow’, and $6 (approx £4.50) for Compensation
3. BambooHR
BambooHR is a popular choice for companies looking for performance management tools as part of a robust and comprehensive HRIS. In addition to supporting advanced performance management, BambooHR facilitates the secure management of employee documentation, offers tools to assess employee engagement, and tracks time management for hospitality companies. Users praise the platform’s intuitive interface, which they say makes for a smooth experience for both employees and managers.
The key features that BambooHR offers when it comes to tools for performance management include:
- Supports continuous improvement through individual goal-setting, 360-degree feedback, regular review cycles, and progress reports.
- Modules available to help with employee satisfaction and well-being
- Self-service portal for employees to access their own records easily
- Visual performance vs. engagement grid
Pros:
- Simple interface that requires minimal training to use.
- System integrates with payroll and other HR apps.
Cons:
- The Core plan does not include advanced performance management tools.
- Limited customisation options for reporting.
Price:
- From £8.10 per month for the ‘Core’ plan.
- Pro and Essentials plans are also available, plus add-ons for time tracking and employer of record.
Comparison Chart of Performance Management Software
| Software | Performance Reviews | Goal Setting & Tracking | Employee Engagement | Broader HR Integration | Payroll Integration | Best For |
| Factorial | ✅ Full-cycle | ✅ Yes | ✅ Surveys & feedback | ✅ Full HR Suite | ✅ Yes | Growing hospitality SMEs with multiple locations |
| Lattice | ✅ Continuous | ✅ OKRs | ✅ Surveys & analytics | ❌ Limited | ❌ Limited | Multi-location hospitality chains |
| BambooHR | ✅ Flexible cycles | ✅ Yes | ✅ Satisfaction & Wellbeing | ✅ Yes | ✅ Third-party only for UK businesses | Small to mid-sized hotels and restaurants |
Streamlining Your Hospitality Performance Management with Factorial
Factorial is a robust option for hospitality businesses looking for a comprehensive HR solution that will cover their complex performance management needs while also integrating with other aspects of people management, such as time tracking, training and recruitment – all of which are essential for the hospitality sector.
Through centralising HR functions along with payroll and performance management, Factorial supports managers to:
- Set and track individual and team goals across different locations and departments.
- Provides employees with a transparent and accountable performance management system.
- Ensure they are compliant with local tax and legal regulations.
- Keep on top of performance review cycles and feedback loops continuously.
- Improve employee engagement, reduce turnover and increase productivity.
👉 Schedule a free demo to see Factorial in action. See how we can help streamline your performance management processes immediately.
