Employee performance reviews are an essential part of managing a successful team, but unfortunately, they can often be time-consuming and inefficient. In fact, studies have shown that nearly 60% of businesses still rely on basic spreadsheets to track and monitor employee performance. Even more concerning, it takes managers an average of one to two weeks to complete just one employee review. But fear not, for Ben Hastings and Jon Malpass have come to the rescue with their innovative platform, PerformYard.
“We wanted to make the performance review process easier and less of a headache for both managers and employees,” says Hastings.
Launched in 2013, PerformYard offers a collection of software-based tools for retention, staff management, and upskilling. The company has mainly been self-funded, with a $3 million seed funding round in the beginning. However, with plans for expansion, Hastings and Malpass have now secured a much larger investment from Updata Partners.
PerformYard recently announced that they have raised an impressive $95 million from the tech-focused growth equity fund. Hastings, who also serves as the CEO of Perform Yard, explains that this new cash injection will be utilized for expanding their suite of apps and services, as well as growing their current team of 70 employees.
“Partnering with Updata will not only bring in the resources we need for our growth, but it will also align us with a like-minded company that shares our vision,” says Hastings. “As a business, PerformYard has been profitable since its inception and has shown attractive unit economics.”
Prior to starting PerformYard, Hastings worked in the tech industry as a go-to-market sales leader, while Malpass held positions as a product manager, customer implementation manager, and consultant.
“Jon and I first met in 2009 and worked closely together for five years at a small tech company,” recalls Hastings. “In early 2013, I decided to take a leap and create a software-as-a-service platform for employee performance management. I personally funded the initial team and Jon joined a few months later. Together, we developed the product vision, hired our engineering team, built the initial version of the platform, and closed our first customers.”
PerformYard offers a wide range of workflows and pipelines to address different aspects of employee reviews, including annual reviews, quarterly goals, and continuous feedback. The platform allows managers to set team and individual goals, give private notes, and conduct employee engagement surveys. It can also connect with existing HR systems to ensure records are up to date.
While there are other performance management platforms on the market, like Lattice, Pathlight, and HiBob, Hastings believes PerformYard sets itself apart with its comprehensive feature set.
“Our mission is to make the performance review process easy and seamless, no matter what our customers are aiming to achieve,” explains Hastings.
He goes on to say that many customers choose PerformYard because it’s more user-friendly and advanced compared to other performance software that may be included in larger HR information systems or payroll suites.
Thanks to their unique features and strong marketing strategies, PerformYard is thriving. The platform charges most customers $5 to $10 per seat per year for access, and it has over 1,500 business customers. In the past four years, their revenue has grown fivefold.
“We have a culture of lean and metrics-driven practices, along with a superior product-market fit, that positions us well for future growth,” boasts Hastings. “We’re lucky to be in a growing industry where employee development and feedback are critical to business success. We have seen our customers achieve significant value and contribute more significantly to their businesses through our platform.”