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Reviewing The Success of the Performance Management Software Industry in 2020

Performance management software industry

Com­pa­nies around the world, large and small, are care­ful­ly reassess­ing their per­for­mance man­age­ment sys­tems. Intent on improv­ing employ­ee engage­ment, employ­ee per­for­mance and com­pa­ny reten­tion, organ­i­sa­tions are seek­ing to step away from annu­al appraisals and towards a more holis­tic, con­tin­u­ous approach. HR exec­u­tives and man­agers have been look­ing for a way to improve their goal-set­ting sys­tems, improve com­mu­ni­ca­tion and improve their train­ing process­es — this is why con­tin­u­ous per­for­mance man­age­ment has flour­ished so much in the last few years.

Con­tin­u­ous per­for­mance man­age­ment requires reg­u­lar catch-ups and real-time com­mu­ni­ca­tion to be tru­ly effec­tive. Per­for­mance man­age­ment soft­ware helps to track per­for­mance coach­ing con­ver­sa­tions, assists with career plan­ning and allows for in-the-moment feed­back. The growth of the per­for­mance man­age­ment soft­ware indus­try has been strong in recent years, but research has shown that the mar­ket is set to explode fur­ther in the years to come.

Below, we’ll explore how the per­for­mance man­age­ment soft­ware mar­ket is like­ly to grow, the key mar­ket dri­vers and why HR soft­ware is show­ing no signs of slow­ing down.

  1. The Per­for­mance Man­age­ment Soft­ware Market
  2. The Emer­gence of Cloud Com­put­ing Ser­vices as a Mar­ket Driver
  3. The Key Mar­ket Dri­ver for Per­for­mance Man­age­ment Software
  4. How Com­pa­nies Are Reassess­ing and Redesign­ing Their Per­for­mance Man­age­ment Systems
  5. Why the Per­for­mance Man­age­ment Soft­ware Mar­ket Will Con­tin­ue to Thrive
  6. Why Clear Review Per­for­mance Man­age­ment Soft­ware Has the Edge

Per­for­mance Man­age­ment Soft­ware Mar­ket — The Pre­dic­tions and Cur­rent Mar­ket Size

Accord­ing to a recent report, the glob­al per­for­mance man­age­ment soft­ware mar­ket was val­ued at rough­ly $2.1 bil­lion in 2018. By 2026, the mar­ket is expect­ed to gen­er­ate $5.6 bil­lion. This is a mar­ket growth of around 12.8%. As of 2019, North Amer­i­ca holds a major rev­enue share of this glob­al per­for­mance man­age­ment soft­ware mar­ket due to its ear­ly adop­tion of the soft­ware. As a result of tech­no­log­i­cal advances, it’s expect­ed that North Amer­i­ca will con­tin­ue to fur­ther dri­ve the region­al market.

Europe also holds a sub­stan­tial mar­ket share, although it is the Asia Pacif­ic region that is expect­ed to grow at the high­est rate due to an increas­ing demand for an objec­tive, mean­ing­ful and effec­tive per­for­mance man­age­ment. As a result of their flour­ish­ing health­care and man­u­fac­tur­ing sec­tors, Chi­na and India are like­ly to sig­nif­i­cant­ly dri­ve the growth of the per­for­mance man­age­ment soft­ware in the future.

The Emer­gence of Cloud Com­put­ing Ser­vices as a Mar­ket Driver

One major rea­son we believe per­for­mance man­age­ment soft­ware has tak­en off in a seri­ous way is due to the emer­gence of cloud com­put­ing. By pro­vid­ing cen­tral admin­is­tra­tion and con­trol, cloud com­put­ing has allowed us to sim­pli­fy soft­ware and make it more acces­si­ble across devices. Cloud com­put­ing also means an escape from com­pli­cat­ed and time-con­sum­ing instal­la­tion — users of cloud-based per­for­mance man­age­ment soft­ware don’t need to update and main­tain it, as this is man­aged by the sup­pli­er. The cloud mod­el also makes it eas­i­er and quick­er for organ­i­sa­tions to test and roll out new appli­ca­tions, reduc­ing the bar­ri­ers to purchase. 

Key Mar­ket Dri­ver for Per­for­mance Man­age­ment Soft­ware — The Need for Real-Time Feedback

Over recent years, it has become clear that employ­ees expect real-time feed­back. In fact, feed­back has been direct­ly tied to work­place sat­is­fac­tion and com­pa­ny loy­al­ty. One source found 72% of mil­len­ni­als who con­sis­tent­ly receive accu­rate feed­back from their man­agers expe­ri­ence sat­is­fac­tion in the work­place. Con­verse­ly, only 38% of employ­ees who don’t receive feed­back feel ful­filled at work.

One impor­tant thing to remem­ber is that employ­ees don’t just want feed­back — they want feed­back that is mean­ing­ful and time­ly. Per­for­mance man­age­ment soft­ware pro­vides com­pa­nies with the capac­i­ty for real-time feed­back. This opens up lines of com­mu­ni­ca­tion and encour­ages deep­er rela­tion­ships between man­ag­er and employee. 

Com­pa­nies Are Reassess­ing and Redesign­ing Their Per­for­mance Man­age­ment Systems

Per­for­mance man­age­ment sys­tems are chang­ing. Organ­i­sa­tions are becom­ing more agile. They are becom­ing more famil­iar with cur­rent and emerg­ing per­for­mance man­age­ment trends and more sen­si­tive to what their employ­ees want — what moti­vates them and what engages them. And they are see­ing the busi­ness ben­e­fits as a result of these changes.

Organ­i­sa­tion­al change such as this can take time and seri­ous effort, and it is dif­fi­cult to achieve when you don’t have the right tools and soft­ware to assist and ease the tran­si­tion. As per­for­mance man­age­ment sys­tems are being adapt­ed to be more mod­ern and for­ward-think­ing, com­pa­nies are also choos­ing to invest in, and update, their per­for­mance man­age­ment software.

Why the Per­for­mance Man­age­ment Soft­ware Mar­ket Will Con­tin­ue to Thrive

This is direct­ly tied to our increased focus on employ­ees, the employ­ee expe­ri­ence and how indi­vid­u­als become engaged at work. As we improve our under­stand­ing of employ­ee moti­va­tion, morale and enthu­si­asm, we are tai­lor­ing our per­for­mance man­age­ment sys­tems to not only get the most out of our employ­ees but also to keep them hap­py and pro­duc­tive at work. This requires increased human-to-human inter­ac­tion, which can’t be sub­sti­tut­ed — but it can be facil­i­tat­ed and pri­ori­tised with the use of software.

Mov­ing for­ward, we pre­dict that com­pa­nies will con­tin­ue to demand cloud-based, intu­itive soft­ware that pri­ori­tis­es employ­ees and their needs. 

Why Clear Review Per­for­mance Man­age­ment Soft­ware Has the Edge

At Clear Review, we have worked hard to pro­duce soft­ware that is con­ducive to high-per­for­mance cul­ture. Our focus has always been on pro­duc­tive and devel­op­men­tal com­mu­ni­ca­tions, agile goals and real-time feed­back. It is due to this com­mit­ment, and our ded­i­ca­tion towards improv­ing the employ­ee expe­ri­ence through stream­lined per­for­mance man­age­ment, that we have been hon­oured with the title of Ven­dor of the Year” at the UK Employ­ee Engage­ment Awards.

At every stage of our jour­ney, we have kept sim­plic­i­ty in mind. We want to make life as easy as pos­si­ble for our clients and believe the mark of good soft­ware is that it requires lit­tle to no train­ing to get you start­ed. Our intu­itive and user-friend­ly design is sup­port­ed by a team of experts with years of expe­ri­ence in HR, which means we under­stand the world of work and what it means to man­age a team. As more and more com­pa­nies tran­si­tion away from annu­al appraisals and the per­for­mance man­age­ment soft­ware mar­ket con­tin­ues to thrive, we look for­ward to col­lab­o­rat­ing with more teams and con­tin­u­ing to pro­vide our sim­ple yet effec­tive soft­ware solution.

Clear Review’s per­for­mance man­age­ment soft­ware has helped more than 180 organ­i­sa­tions tran­si­tion to con­tin­u­ous per­for­mance man­age­ment while improv­ing com­mu­ni­ca­tion and boost­ing com­pa­ny trans­paren­cy. To find out how we can help you, book a per­for­mance man­age­ment demo today.

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