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Modern businesses require flexible, agile systems that can track progress in real time, provide continuous feedback and adapt to dynamic workplace environment. As the workplace is evolving rapidly, so are the expectations around employee performance. Using qualitative approach, this paper unpacks the opportunities and challenges of EPMS as well as provide recommendations on how organizations in Lesotho can make use of it. Despite the vast literature on digitalization, there has been a lot of hesitation on the total adoption of EPMS in most organization mostly in developing countries like Lesotho.  The methodology involved a comprehensive review of previous studies, primarily relying on secondary data to explore the concept of digital HRM and its various dimensions. Thematic analysis was conducted to identify patterns and insights related to EPMS. The findings revealed that EPMS can provide opportunities for orgnaisations in Lesotho which include real-time feedback, objective continuous performance monitoring, data-driven insights, reduction in operational costs and improved communication. However, despite EPMS’s benefits it comes with challenges, such as data overload, costs, algorithmic bias, data privacy concerns and loss of personal interaction. Based on the findings, organisations must invest in robust data security measures, such as encryption and secure storage protocols, to mitigate these risks and having clear policies that relates to EPMS.