Continuous performance management (CPM) is an important aspect of human resource management (HRM). It helps to track employee's productivity on a daily, weekly, or monthly basis with the help of software. It also helps to assess employee performance through real-time evaluations, one-to-one meetings, and based on scheduled checks, to set the productivity target. Performance improvement strategies contributed to a 20% increase in talent engagement and retention at various levels. It thus helps to increase the adoption of CPM in small and medium-sized enterprises, and promotes the process for large enterprises, and helps to address various challenges. As a result, the global market for continuous software performance management is projected to have considerable growth opportunities during the forecast period.
Continuous performance management software enables companies to manage and access employees' details effectively in real-time. This is likely to drive the performance management software market in the future. Several software development providers and distributors focus on enriching performance management software by integrating value-added processing to improve software, such as human resource compliance management tools, labor analytics, etc. Increasing demand for better architectures that can be used for talent and recruitment functions is vital to the growth and functioning of talent management software models, such as employee benefits management, employee verification, and job application processing.
Intense competition between key players may, however, reduce the growth of the global market for performance management software over the estimated timeframe. Performance management systems presently offer a wide range of facilities for different application areas, such as performance assessment, performance assessment in educational institutions, universities, corporate organizations, and training organizations. Recent performance management solutions such as Taleo (Oracle) and Kenexa (IBM) provide out-of-the-box features such as candidate search, candidate relationship management, and consulting costs that reduce deployment time.
Although the overall rate of cloud-based continuous performance management software is increasing, organizations are more concerned about their data security. The Ponemon Institute stated that 50% of the IT and security professionals surveyed believed that their organization's security measures to protect cloud data were low.
Continuous performance management software contains sensitive information about employees. Additional security measures must therefore be taken into account to maintain data security. Cloud comes with a unique set of features that make it more vulnerable to data breaches. This further reinforces doubts about data leakage in small and medium-sized enterprises as well as in large enterprises.
As they have fewer staff and a shorter chain of commands, small and medium-sized enterprises (SMEs) face unique challenges and opportunities when it comes to talent management. They are more likely, however, to provide more transparency for individual performance. Continuous software for performance management helps small and medium-sized enterprises to enhance the attraction and retention of talent and enhances the growth of employees to improve the capacity for teamwork. It proves to be a much more efficient way of providing frequent feedback to staff to improve productivity and retention of staff, and SMEs are paying more attention to retaining their talents.
According to Management Talent, a 20 percent increase in talent retention and engagement at all levels is driven by efficient performance management practices. Therefore, small and medium-sized businesses are more likely to opt for software. Furthermore, businesses no longer need to source and maintain expensive hardware and software with the emergence of cloud computing and can adopt innovative business models using technology.
The global continuous performance management (CPM) software is segmented into on-premise and cloud-based. In 2019, a cloud-based solution dominated the market owing to factors such as high security, less maintenance, ease of integration, and access. Besides, the cloud-based design utilizes lower capital spending and security investment, which is projected to increase market growth rapidly. According to Salesforce.com, 69% of businesses are already utilizing cloud technology, whereas 18% of companies plan to implement cloud computing in the coming years.
In June 2017, for instance, Nestle announced the implementation of SAP's SuccessFactors in partnership with SAP SE. Performance Management (CPM) functionality on mobile devices to facilitate ongoing feedback and performance coaching for employees. This enables a modern digital employee by ensuring that its worldwide employees have access to a first mobile-enabled cloud, HR flexible platform for the normalization, simplification, and unification of HR data and processes.
Large enterprises are expected to have a significant share of account management in the ongoing software performance management market.
In developed regions such as North America, Europe, and Asia-Pacific, the strong presence of large enterprises. In March 2019, for example, Betterworks, which provides CPM with enterprise HR software, announced that by extending its Series B, it had secured an additional USD 27 million investments amount to USD 51 million, bringing the total amount of funding to over USD 65 million.
The COVID-19 pandemic has severely impacted various industry verticals for the entire first half of 2020 and is continuing to have its impact on the rest of the year as well. The industries have been shut down and workers sent home, resulting in halted production almost for the entire year. However, there has been a constantly emerging demand for work from home culture across the world is a significant factor for the growth of Continuous Performance Management. The advancement in technology has a considerable potential to meet the mounting scalable and growing data transmission requirement. The rising demand for performance monitoring interfaces explicitly used for mobile device computing is anticipated to create lucrative opportunities for universal Continuous Performance Management in the post-COVID-19 era.
Without data collection, subjective analysis becomes the basis for performance review, leading to overall imprecision and bias in performance management. Organizations are leveraging the wealth of available digital insights and embracing the power of business intelligence to make more informed decisions that would facilitate business growth and evolution.
Currently, most business-based decisions are backed by metrics, facts, or figures. Several companies are adopting and implementing various reporting tools for accurate analysis and measurement of data. For example, according to Sisense Inc., more data-driven organizations are at the top of their game than those whose decisions are driven by instincts. Therefore, different organizations attach importance to data-driven decision-making for employee performance management. According to Atiim Inc., only 8 % of companies consider the annual review to be beneficial in the case of employee performance management. The increasing need to improve business performance and the increasing adaptation of data-driven decision-making by organizations drives the demand for continuous performance management software.
With North America being an early adopter of emerging solutions, over the forecast period, 2019-2028, the region is projected to dominate the global continuous performance management (CPM) market with a CAGR of 12.4%. In 2018, 64.01% and 35.99% of shares were accounted for by large companies and SMEs, and these figures are estimated to reach 62.5% and 37.5% by 2028, respectively. In this context, it is clear that the growth of large businesses will lead to the rapid adoption of solutions for CPM software over traditional practices. Traditional practices are cost-intensive and time-consuming compared to CPM software solutions and offer inefficient evaluation processes, compelling SMEs, and large enterprises to gradually shift to the former.
To conduct quarterly assessments, measure employee performance and track feedback, prominent global players such as IBM, HubSpot, and Indeed are adopting CPS software solutions. According to a study conducted by Betterworks, organizations that adopt CPM report organizational execution improvements of 12-14 percent.
Asia-Pacific is projected to record rapid growth in the market for continuous software performance management in the context of an increasing number of applications. Demand for efficient and unbiased SME performance assessment systems. According to the Economic and Social Commission of the United Nations Asia and the Pacific, are emerging as a manufacturing and information technology hub with the presence of a large SME sector. This offers significant opportunities for a continuous market for performance management.
Central and South America and the Caribbean are likely to see a significant increase in the continuous market for software performance management as a result of the growing market for software performance management. Adopting technological advances in performance management processes among SMEs in countries such as Brazil and Argentina, among Others. Organizations across Central and South America and the Caribbean are therefore adopting a data-driven decision-making approach to employee performance evaluation, which is expected to provide growth opportunities for the continuous market for software performance management.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|