Performance and Goal Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Performance and Goal Management Market revenue is expected to grow at a CAGR of 12.0.% over the next five years. Performance management tools assist individuals in performing to the best of their ability and producing the highest-quality work most efficiently and effectively.

Key Highlights

• Performance and goal management software improves workplace efficiency by differentiating people depending on their performance. Organizations that use performance and goal management software see a comparative increase in overall outcomes and revenue development because it provides a more accurate and equitable allocation of ratings. Such software tools will bring new growth opportunities to the market.
• The increase in mobile apps has fueled the growth of performance management software. With the rising popularity of mobile apps, the potential for growth for performance management software is growing. Opportunities in the market include the product's increasing popularity, leading to increasing awareness globally. These factors are expected to drive the demand for performance and goal management software in the near future.
• The use of performance and goal management is becoming more common. The private corporation is increasingly utilizing performance and goal management software applications as tools to achieve objectives and core values to align individual goals. It ensures that all the employees work on similar destinations to achieve, eliminate the gap, and stay on the right path to achieve organizational goals. For Instance, Qualtrics, the pioneer and inventor of the Experience Management (XM) category, announced the completion of its acquisition of Clarabridge, bringing the omnichannel conversational analytics leader to the experience management platform.
• Key players in the performance and goal management market are focused on upgrading their existing solutions, which primarily drives the market growth. For Instance, In April last year, Oracle ME, a comprehensive employee experience platform, was introduced to assist enterprises in increasing employee engagement and ensuring employee success.
• The COVID-19 pandemic has resulted in significant changes in organizations' work, affecting employees day-to-day work activities. At the same time, the introduction of new software technologies such as performance and goal management might facilitate such activities, mitigating organizations from COVID-19's implications.

Key Market Trends

Growing Demand for Cloud Technology

• Cloud-based performance management will allow organizations to access these tools anywhere with an internet connection. Cloud computing is being used by many businesses to track employees' progress from any location at any time. Employees may also be able to establish automated due date reminders to arrive on their preferred device with a cloud-based solution. Implementing cloud-based solutions will bring new growth opportunities for the performance and goal management market.
• Key players in the performance and goal management market are increasingly migrating to cloud technology. For Instance, Oracle Talent Management Cloud Service provides a talent management solution that encompasses hiring, learning, performance management, goal management, career development, talent review, succession management, and profile management. In addition, this solution drives productivity, staff development, and retention with integrated enterprise social networking tools, business intelligence, and mobile data access.
• With the increasing penetration of cloud computing and related technologies, such as IoT, edge computing, and serverless architecture, enterprises' demand for cloud performance management services is gaining huge traction. The cloud performance management services market is immensely growing for managing corporate organizations. According to Turbonomic, in the global use of cloud providers by organizations, Microsoft Azure has the highest 56% use of cloud solutions.
• Integrating cloud-based infrastructure and business analytics is expected to provide exponential growth opportunities to the industry verticals such as transportation, BFSI, retail, and others. The popularity of cloud-based performance and goal management software is growing rapidly, owing to features such as real-time access to operational and financial data that is not available using existing legacy and on-premise systems. Infrastructure costs ranging from operating system updates to server upgrades also increase the costs of maintaining on-premise enterprise performance management systems without an assurance of higher quality. These cloud-based performance and goal management application updates are automatically pushed out to customers. These factors are anticipated to offer future opportunities for the cloud-based performance and goal management market.

North America is Expected to Register Significant Market Growth

• Across North America region the work environment is rapidly changing. More employees are working remotely or in a hybrid work environment. As a result, to achieve organizational goals, organizations are increasingly adopting performance and goal management software tools to monitor and evaluate employees' work.
• In North America, the fastest-growing countries are the United States and Canada. The US is one of the most advanced regions in infrastructure development, innovation, development, and R&D activities. Giant players, such as Microsoft, SAS, and IBM, are headquartered in the US, contributing to the growth of the Performance and Goal Management Market.
• For Instance, Oracle Human Capital Management (HCM) and Oracle Fusion Goal Management (Goal Management) provide organizations with a tool for tracking and managing corporate and individual objectives and tightly aligning them with the overall talent management process.
• HR departments typically use performance management software to support managers in various departments. Organizations across North America use advanced technologies to carry out employee performance reviews, keep track of conversation topics, create goals for staff members, and promote 360-degree feedback.

Competitive Landscape

The Performance and Goal Management Market is moderately competitive. Key players in the market dominate the market in terms of market share. Moreover, the variables are involved in various mergers and acquisitions and product innovation, among others, to gain a competitive edge over others.

In February 2022, IBM collaborated with SAP to deliver technology and consulting experience to help clients in regulated and non-regulated industries. They adopted a hybrid cloud approach and migrated mission-critical workloads from SAP systems to the cloud.

In February 2022, HRSoft, a global leader in compensation software and goals-based performance management solutions, announced that it had expanded its technology partnership with UKG to include goals and performance management software.

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• The market estimate (ME) sheet in Excel format
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