INSIDER

Study Analyzes Market for Workforce Performance Management

OAKLAND, Calif.—May 24, 2006—According to a Bersin & Associates’ research study, “Performance Management 2006: Market Analysis, Trends, Best Practices, and Vendor Profiles,” the performance management market is estimated at $136M in license revenue today and will grow 40% over the coming year, based on purchasing plans and vendor estimates.

The report, described as a study of best practices in performance management processes and detailed analysis of performance management systems—is authored by principal analyst Josh Bersin. The report is intended to help readers select a performance management system and provide guidance on developing a performance and talent management strategy.

“Performance management is one of the hottest topics on the minds of HR and training managers today,” writes Bersin in the report. “When we asked what their priorities were for 2006, the three answers that topped the list were performance management, leadership development, and succession planning.”

As described in a recent announcement, the $1795 report is based on a survey of 553 HR and training managers and executives, interviews with more than 50 representatives from organizations currently using performance management systems, briefings with 21 software and services vendors, and a survey of 125 HR managers with experience implementing a performance management system.

According to the announcement, the performance-management systems market is fragmented: of 21 vendors included, none has a significant lead in market share. SuccessFactors has the highest market share based on revenue (17.5%); Halogen Software has the largest number of live client sites (20.7%), and Oracle has the largest share by number of licensed users (17.8%). However, the report points out that these market share leads represent relatively small revenues and customer bases. Only 11% of organizations surveyed have vendor-provided solutions, and 41% of these implementations have occurred in the last year.

The study covers the key business drivers of performance management initiatives; performance management best practices; the four categories of software providers; implementation benchmarks for performance management systems; and system integration trends and integrated talent management suites, among other topics.

Bersin & Associates will discuss the study’s findings in a Webinar on Wednesday, May 31, at 2:00 p.m. EDT. To register, go to http://events.interwise.com/?p=500649&t=7&s=bersin.

www.bersin.com