Workforce Performance Management Software: Current Trends

A recent research study from IDC confirms that Workforce Performance Management is the fastest growing segment of the talent management market. The study, "Worldwide Workforce Performance Management 2006-2010," forecasts that global spending on Workforce Performance Management services will grow at an annual rate of 16.3% through 2010. This is not surprising as the well-publicized "war for talent" continues to rage and companies worldwide focus their energy (and pocketbooks) on this critical issue.

What are some current trends in Workforce Performance Management?

» Increasing Attention on Workforce Performance Management

A recent survey of over 3,000 HR professionals by The International Association for Human Resources Information Management (IHRIM) asked respondents the following question: "How do Workforce Performance Management Initiatives Rank in Terms of Your Overall Human Capital Management Priorities?" Below are the results:

• 54% of respondents felt Workforce Performance Management Initiatives were extremely important
• 40% of respondents felt Workforce Performance Management Initiatives were somewhat important
• Only 2% of respondents felt Workforce Performance Management Initiatives were not very important

» Increasing Integration

As organizations realize the significant power and cost savings harnessed from a holistic approach to workforce management, the move toward integration increases. Research is showing that progressive companies are integrating their once siloed HR functions, however many organizations are struggling with this challenge. A recent survey of over 3,000 HR professionals by The International Association for Human Resources Information Management (IHRIM) found the following:

• 88% of respondents admitted that Workforce Performance Management Process integration is somewhat or very limited in their organization
• 95% of respondents admitted that Workforce Performance Management System integration is somewhat or very limited in their organization.

Almost all of the survey respondents agreed that things will change. 95% believe their HR and training systems will become integrated over the next year.

» Alignment of Corporate Objectives with Individual Performance

The IDC study of Workforce Performance Management, found that organizations are poised to use Workforce Performance Management technology to provide greater alignment of corporate objectives into individual and organizational performance. Additionally, the IHRIM survey reported that 96% of their respondents felt that top line business performance will improve if Workforce Performance Management initiatives improve . . . but the sentiment among these HR professionals is that there is much work to be done.

» Self-Assessments the Most Common Measurement Mode for Talent Evaluation

A recent Human Capital Management survey found that 91% of 96 global HR professionals use self and manager assessments as the most common measurement tool for evaluating talent in their organizations. Additionally only 9% of respondents considered these assessments inaccurate. Workforce Performance Management technologies or performance management software as sometimes referred to are increasingly being utilized to implement such assessments.

» Real Time Data - Increasingly Being Used to Monitor Employee Sentiment

A recent study of over 600 HR managers by Monster found that many organizations are increasingly using technology to capture real time streaming data on how employees are feeling in their jobs. The study, "Retention Strategies for 2006 and Beyond - Winter 2006" reported that in some companies, senior management is using this data to gauge the health of their company.

» Trends in Buying Workforce Performance Systems and Services IDC recommends organizations consider the following when buying a Workforce Performance Management System:

• Look at best practices rather than automate a broken or ineffective process
• Build a Workforce Peformance Management plan with a specific goal
• Don't build a Workforce Performance Management System in-house