Performance Appraisal and Management Software Global Market Report 2024

The performance appraisal and management software market size has grown rapidly in recent years. It will grow from $6.18 billion in 2023 to $7.07 billion in 2024 at a compound annual growth rate (CAGR) of 14.4%. The historic growth can be attributed to increased adoption of software solutions, growing SME focus on Corporate Performance Management (CPM) software, and rising demand from developing countries. Factors such as the need for objective performance evaluation and timely assessment to boost production further fueled this expansion.

The performance appraisal and management software market size is expected to see rapid growth in the next few years. It will grow to $11.86 billion in 2028 at a compound annual growth rate (CAGR) of 13.8%. The anticipated growth in the forecast period is driven by several factors, including the expansion of performance appraisal and management software, a heightened focus on employee engagement and development, transparency in reward systems to bolster market growth, increasing demand from small and medium-sized organizations, remote work trends, and integration with HR systems. Major trends expected during this period include an expansion in the small and medium-sized enterprises (SMEs) segment, the adoption of self-appraisal systems to enhance market growth, the emerging need for simplified and effective performance management tools, integration with employee engagement and well-being solutions, and heightened demand due to the introduction of AI and analytical insights.

The anticipated rise in the adoption of digital human resource (HR) solutions is poised to drive the growth of the performance appraisal and management software market in the foreseeable future. Digital HR solutions leverage social, mobile, analytics, and cloud (SMAC) technologies to enhance the efficiency, effectiveness, and connectivity of HR processes. Performance appraisal and management software play a crucial role within digital HR solutions by automating and streamlining the performance appraisal process, thereby enhancing efficiency and effectiveness for both HR professionals and employees. For example, as reported by UserGuiding, a US-based user onboarding and in-app messaging platform, the HR software market was projected to reach $10 billion by 2022, with approximately 74% of businesses planning to increase spending on HR technology. Consequently, the increasing adoption of digital HR solutions is expected to fuel the growth of the performance appraisal and management software market.

Major companies in the performance appraisal and management software market are innovating with solutions such as performance management systems to maintain their market leadership. These systems provide a systematic approach for setting performance expectations, tracking progress, and offering feedback and development opportunities to employees. For instance, in July 2023, Air India introduced Rise.AI, a digitized appraisal system aimed at fairness, transparency, and complete digitization. It includes clearly defined job descriptions and specific performance goals.

In May 2022, Visma, a software company headquartered in Norway, specializing in business software and information technology-related development, completed the acquisition of Mandü for an undisclosed sum. This strategic move reinforces Visma's HR offering and extends its HR product reach across multiple countries in Latin America. The acquisition empowers Visma to provide its customers with technology aimed at enhancing employee engagement and performance management solutions, thereby enabling them to generate added value. Mandü, based in the US, is a platform focused on employee engagement and performance management.

Major companies operating in the performance appraisal and management software market report are International Business Machines Corporation, Oracle Corporation, SAP SE, ADP LLC, Workday Inc., UKG Inc., BMC Software Inc., PO Söderberg & Partner AB, Kronos Incorporated, Cornerstone OnDemand Inc., Halogen Software Inc., Lattice, BambooHR LLC, SumTotal Systems LLC, Ultimate Software Group Inc., Saba Software Inc., ELMO Software Limited, Reflektive Inc., 15Five, Paradiso Solutions, UPRAiZAL Inc., Söderberg & Partners Heartpace AB, Actus.

North America was the largest region in the performance appraisal and management software market in 2023. Asia-Pasific is expected to be the fastest-growing region in the forecast period. The regions covered in the performance appraisal and management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the performance appraisal and management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Performance appraisal and management software are digital tools designed to assist human resource (HR) specialists and managers in evaluating, streamlining, and automating the performance appraisal process. These solutions facilitate the establishment and monitoring of specific goals, offer feedback mechanisms, and provide structured and actionable recommendations.

The primary types of performance appraisal and management software include system management, personnel management, and attendance management. System management involves overseeing and controlling the operational aspects of a system, which may encompass hardware, software, networks, and other components. These software solutions are deployed in both on-premise and cloud-based modes, catering to organizations of various sizes, including large enterprises and small and medium enterprises (SMEs). They find application across diverse industry verticals such as banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, retail, and the public sector.

The performance appraisal and management software market research report is one of a series of new reports that provides performance appraisal and management software market statistics, including performance appraisal and management software industry global market size, regional shares, competitors with a performance appraisal and management software market share, detailed performance appraisal and management software market segments, market trends and opportunities, and any further data you may need to thrive in the performance appraisal and management software industry. This performance appraisal and management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The performance appraisal and management software market include revenues earned by entities by providing services such as implementation services, customization services, training and support, integration services, and data migration services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The performance appraisal and management software market also include sales of central processing unit (CPU), memory devices, storage, input devices, and output devices.. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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