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March 12, 2015 — Dramatic changes to how organizations manage employee
performance are driving demand for software that focuses more on employee
development than appraisal, according to new research from Bersin by Deloitte.
Summarized in a complimentary WhatWorks® Brief, the research findings appear in
Bersin by Deloitte’s new study “The Guide to Performance Management Software 2015: A Roadmap to Performance Management and the Solutions That Support It.”
organizations are moving away from viewing performance management as a
once-a-year event where employees are assessed and evaluated. Increasingly,
organizations view effective performance management as a series of ongoing
activities that include goal-setting and revising, managing and coaching,
development planning, and rewarding and recognizing. However, support for such
activities across current performance management solutions varies widely,
according to the study, which looked at more than 120 performance management
features from 46 providers of performance management software.
management software was the most noted software application area targeted for
investment in 2014 and 2015,” said Katherine Jones, vice president, human
capital management technology research, Bersin by Deloitte, Deloitte Consulting
LLP. “According to our recent study, ‘Investments in Human Capital Management
Systems 2014,’ 67 percent of the companies studied stated plans to purchase
performance management software either for the first time or to replace
existing solutions. A key reason for this interest is that the one-and-done
annual view of performance management is rapidly falling out of favor as
progressive organizations seek to support performance on an ongoing basis — and
they need software to support this next-generation approach.”
The new research
looks at many aspects of performance management. However, the research
identified one area as becoming increasingly important: continuous coaching.
“There are many
factors contributing to this focus on continuous coaching,” said Stacia Sherman
Garr, vice president, talent and HR research, Bersin by Deloitte, Deloitte
Consulting LLP, and a co-author of “The Guide to Performance Management
Software 2015.” “Work is becoming more dynamic and fast-paced. We see the rise
of a large, young generation of employees, along with a skills gap in both
developed and emerging markets. Finally, we see coaching as an increasingly
large part of the employment value proposition, where employees want to receive
individual feedback and feel valued by their organizations for their unique
increased focus on coaching, the study shows that only a subset of software
applications support coaching management and tracking today. Among the study’s
other key takeaways:
Register to join
Katherine Jones, Ph.D., and Stacia Sherman Garr for an online webinar, “The Performance Management Technology Revolution: When ‘One and Done’ Won’t Work,”
April 9, 2015 2 p.m. ET/19:00 GMT.
in learning more about Bersin by Deloitte or its WhatWorks® membership may
email firstname.lastname@example.org or call +1 510 251 4400.
About Bersin by
Deloitte delivers research-based people strategies designed to help leaders and
their organizations in their efforts to deliver exceptional business
performance. Our WhatWorks® membership gives Fortune 1000 and Global 2000 HR
professionals the information and tools they need to design and implement
leading practice solutions, benchmark against others, develop their staff, and
select and implement systems. A piece of Bersin by Deloitte research is
downloaded on average approximately every minute during the business day. More
than 5,000 organizations worldwide use our research and consulting to guide
their HR, talent and learning strategies. For more information, please visit
http://www.deloitte.com/bersin or http://www.bersin.com.
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document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of
Deloitte LLP. Please see http://www.deloitte.com/us/about for a detailed
description of the legal structure of Deloitte LLP and its subsidiaries.
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