Performance And Productivity Management Software Industry Research [Part 1]

1. Performance Management Software industry research
2. HR Management Software business research
3. 2020 HR Tech trends
4. List of top VC's invested in HR Tech by the Categories

• Total market and forecast
• Performance Management software market trends
• A collection of handpicked links like industry reports, VC's, TOP influencers in HR tech space and many more

What is performance management?

Total market and forecast

• $2.1 bil­lion in 2018 - Value of glob­al per­for­mance man­age­ment soft­ware mar­ket in 2018
• $5.6 bil­lion by 2026 - how much market expected to generate by 2026
• 12.8% - CAGR between 2019 and 2026

Performance Management Trends

• Problem - since the 2008 recession, pro­duc­tiv­i­ty has (at best) stag­nat­ed

• Labor productivity in the US is higher than average in the European countries. Nonfarm business sector labor productivity increased 1.2 percent in the fourth quarter of 2019

• 85% of employees worldwide are not engaged or are actively disengaged in their job
  (source: Gallup)

• Only 10% of employed Western Europeans are engaged at work; by comparison, the figure among U.S. employees is more than three times as high, at 33%
  (source: Gallup)

• Man­agers are respon­si­ble for 70% of the vari­ance in employ­ee engagement
  (source: Gallup)

• 92.3% of the respon­dents in ClearView’s Per­for­mance Man­age­ment Report said that per­for­mance man­age­ment was a crit­i­cal area they need to address in the next 12 – 18 months (source: ClearView)

• The prob­lem is that man­agers don’t have enough time due to their overload. Con­cerns from HR direc­tors and CEOs over the avail­abil­i­ty or capa­bil­i­ty of their team lead­ers to act as coaches (Source: ClearView)

• Tech­nol­o­gy con­tributes to this. On-board­ing, which might his­tor­i­cal­ly have been seen as an HR func­tion, is now often deliv­ered through tech­nol­o­gy under the guid­ance of the line man­ag­er (Source: ClearView)

• Results of the poll among 300 HR lead­ers with question how they are cur­rent­ly man­ag­ing per­for­mance at their own organ­i­sa­tion: 28.3% said they were using a con­tin­u­ous mod­el of some kind. 1% were using noth­ing at all. The remain­ing 70.7% were either still using annu­al appraisals or were look­ing for the right con­tin­u­ous mod­el to move to (Source: ClearView) 

• Employ­ee-focussed tools - give peo­ple the chance to express their own feel­ings about the work­place. Iit could be as sim­ple as a sug­ges­tion box, or a Slack chan­nel, or a ded­i­cat­ed email address (source: ClearView)

• User-friend­ly tech approach­es - if some­thing isn’t sim­ple and intu­itive, it can get in the way of user adop­tion: (sourse: ClearView)

• Employ­ee-cen­tric think­ing - for example appraisals which primarily developed not for the ben­e­fit of the busi­ness but for benefit of the employees: pro­vide a bonus or pay rise (source: ClearView)

• How can we recruit strong candidates when unemployment rates are so low?
  Hint: The research was conducted one week before I got statistics how COVID-19 affected the unemployment rates. A total of 3.28 million people filed for unemployment insurance in the week ended March 21. It rose from 281,000 the previous week. COVID-19 was a black swan and could affect the demand of job boards.
  (Source: Bloomberg, US Department of Labor). 

• Why does our candidate experience still lag despite our cool new interactive recruiting page, YouTube recruiting channel and automated email response tools?

• Can I hire freelancers instead of full-time staff, and where do I find them?

• How are we supposed to reskill an entire workforce when we don’t know what skills they are going to need?

A collection of handpicked links I used in the research

• Articles
• industry reports
• List of top HR tech influencers and many more.

Summing it up

• $2.1 bil­lion in 2018 - Value of glob­al per­for­mance man­age­ment soft­ware mar­ket in 2018
• $5.6 bil­lion by 2026 - how much market expected to generate by 2026
• 12.8% - CAGR between 2019 and 2026
• North Amer­i­ca holds a major rev­enue share of glob­al per­for­mance man­age­ment soft­ware mar­ket. 
• Key market drivers: the emer­gence of cloud com­put­ing ser­vices and the need for real-time feedback to drive employees' engagement