Is New Performance Management Software in your 2015 Future?







Does your organization have the technology it needs to meet your performance management goals?  Many do not. Companies we surveyed are looking closely at both how they manage and measure their employees’ performance — and at the technologies they have in use today. 


In our recent Bersin by Deloitte study of buyers, we learned that of companies purchasing new talent management software this year, 67 percent were planning to purchase performance management software, either for the first time or as a replacement for existing solutions.[1] [2]


Why? There are several factors:


  • Performance management is increasingly deemed critical in today’s organizations and the historical systems are not perceived as adequately supporting next-generation practices;

  • The current installed systems are aging; 

  • Companies may have multiple different systems and seek to consolidate into one corporate-wide platform.


Of those replacing existing software, fully 75 percent sought to replace a standalone performance management application with an integrated suite solution.


The majority of organizations we surveyed (74 percent) use one software solution for their performance management system, but respondents reported that as many as ten or more systems are used inside their organizations today.


The source of this software varies:  41 percent of respondents reported that their performance management solutions are self-developed; 38 percent are provided by a vendor (often a suite vendor, although the module may be stand-alone) and 21 percent use modules that are within their core HR systems.


In 19 percent of organizations, the software in use is aging — seven or more years old. This is especially the case with large organizations, where 29 percent of organizations with more than 25,000 employees have owned their performance management system for more than seven years.

Reliance on home-grown, self-developed solutions for performance management may well be part of the reason for the interest in procuring new applications in the near future; the lack of any technology solution, as noted by 15 percent of respondents may be another. And twelve percent of the population we surveyed noted that they did not have a formal performance management process at all.[3]

If you are one of the many HR professionals looking at new technology to aid in the management of your employees’ performance, you may also be seeking criteria to help in the selection process. Our upcoming report “The Definitive Guide to Performance Management Software: 2015 — A Roadmap to Performance Optimization and the Solutions that Support It” overviews the key features you will want to consider and the vendors that provide them.

Look for this new report shortly!



This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

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Copyright © 2014 Deloitte Development LLC. All rights reserved.






[1] Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead. Katherine Jones. Bersin by Deloitte. April 2014.

[2] The four application areas most often sought as an integrated via a suite rather than have as standalone solutions are recruiting, onboarding, learning and performance management.

[3] Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead. Katherine Jones. Bersin by Deloitte. April 2014.

Christa Degnan Manning

Christa Degnan Manning leads Bersin by Deloitte’s solution provider research. In this role, she collaborates with Bersin and Deloitte colleagues across practices to identify and analyze software and service providers that support and sustain success in human resources, workforce enablement, and organizational effectiveness. Christa’s research and advisory work helps businesses align their workforce support strategies with the right third-party partners and governance models to deliver functional capabilities and employee experiences that support productivity, engagement, and workforce efficiency. She also helps solution providers map their capabilities and go-to-market activities with solution buyers’ and users’ critical needs. Christa draws on more than two decades of business-to-business market research, operational leadership, and global workforce experience. She holds a Master’s degree from the University of Massachusetts, and a Bachelor of Arts degree from Barnard College, Columbia University, including studies at University College, University of London.

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