Global Performance Appraisal and Management Software Market 2016-2020

Overview of the global performance appraisal and management software market

Market research analysts at Technavio predict that the global performance appraisal and management software market will grow steadily over the next four years and post a CAGR of more than 8% by 2020. This market research analysis identifies the increasing need for a simplified performance appraisal process as one of the primary growth factors for the appraisal software market. To allow managers to easily supervise employee goals and track their progress, several organizations have started shifting from the traditional performance management process to software based performance appraisal solutions. Unlike the inefficient yearly assessments methods, the performance review software allows managers to interact frequently with their employees. This will, in turn, enable managers to identify future issues and be constantly aware of their employees' needs, assignments, and abilities. Additionally, the software also maintains performance records of all employees which subsequently helps in talent development.

One of the major trends that will gain traction in the employee evaluation software market is the increasing usage of mobile devices in performance reviews. The use of mobile devices such as smartphones and tablets is constantly encouraging vendors to launch mobile apps and mobile-friendly websites for various applications. With their increasing functionalities and steadily decreasing prices, employees such as HR executives are using their smartphones to post job notifications. As a result, vendors will start investing in mobile technology and focus on the development of mobile applications for reviewing employee performance.

Competitive landscape and key vendors

Characterized by the presence of a number of employee appraisal software vendors, this global market appears to be highly fragmented and is dominated by key players such as Oracle, Saba, SAP SuccessFactors, SumTotal Systems, and Ultimate Software. Since there is minimal product differentiation, vendors mainly focus on offering products at comparative prices to enhance their customer base. Owing to these price wars, the market’s competitive environment is intense. To sustain the competition and retain their global position, vendors have the need to innovate and develop new apps for performance appraisal and management applications.  One of the major performance evaluation software vendors Oracle provides performance management software that has a flexible and template-driven setup, a user-friendly interface, and several features including automated performance management and the facility to provide feedback on the appraisal review process by multiple participants.

The leading vendors in the market are -

• Oracle
• Saba
• SAP SuccessFactors
• SumTotal Systems
• Ultimate Software

The other prominent vendors in the market are Actus, bambooHR, breatheHR, Cornerstone OnDemand, Hirezon, Impraise, Insperity, Performly, Namely, RedSpotHR.com, Reviewsnap, Trakstar, and Zoho Corporation.

Geographical segmentation and analysis of the performance appraisal and management software market

• Americas
• APAC
• EMEA

This market study estimates that in terms of geographic regions, the Americas was the major revenue contributor to the employee performance review market during 2015. This is mainly due to the focus of the organizations to reduce their IT expenditure and the presence of a number of performance appraisal and management software vendors in the region. Additionally, factors such as the increased penetration of social media platforms and the need to reduce performance review durations will also boost the growth of the employee assessment software market in the Americas. Analysts predict that owing to the adoption of the software by large enterprises, this region will continue its market dominance throughout the next four years as well.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global performance appraisal and management software market?
• What are the key market trends impacting the growth of the global performance appraisal and management software market?
• What are the challenges to market growth?
• Who are the key vendors in the global performance appraisal and management software market?
• What are the market opportunities and threats faced by the vendors in the global performance appraisal and management software market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global performance appraisal and management software market?

Technavio also offers customization on reports based on specific client requirement.

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