According to this IDC brief, workforce performance management is the fastest growing segment of the talent management market – growing at over 16% yearly for the next 5 years.
The report seems to be targeted at both buyers and vendors of performance management systems and offers these headlines:
IDC offers the following key points for potential buyers of WPM software and services:
– Take advantage of others’ best practices, rather than automating a broken or ineffective process
– Build a collective WPM plan with a specific end goal in mind
– Resist the temptation to build a WPM system in-house
The last bullet and the first one are particularly interesting to me – I also think they’re related. So often companies feel they can simply build a performance management system using internal resources. They most certainly can. But how flexible will it be? How scalable? How will it be supported? And to the first point, will you just be automating a (broken) process? And what about usability? Accessibility? Languages?
Max:
Still waiting for the second wave of TMS buyers. The frist wave is obviously all the performance management purchasing going on, but hopefully these buyers will return sooner than later to get the compensation module and so forth. Performance is great, but TMS as a suite really starts to bring value when companies subscribe to multiple components.
Dubs,
Right on. Your point is supported by a lot of what we see with our customers. Some very impressive results come from performance management initiatives, but the impact is multiplicative when modules like comp and succession are added.