Gartner defines employee performance management (PM) systems as applications used to establish, manage and evaluate progress toward employee performance expectations. These features include support for goal setting and cascade, competency models, ongoing bidirectional feedback, performance evaluation, and performance calibration. Performance management systems facilitate the central set of processes that organizations, HR departments and managers use to manage the activities of employees. The most popular use cases include: - Enable goal setting, cascade and management. The technology has matured to enable goal (or objective) setting, cascading and management for most use cases. - Allow continuous bidirectional and peer feedback. PM systems allow organizations to determine the frequency, content structure and visibility of feedback given and received by many users throughout the performance cycle. - Deliver performance evaluation documents and workflows. The core functionality of a PM system is in delivering performance evaluation documents through organizationally defined workflows, including employee self-reviews, manager reviews and approvals.
A talent management (TM) suite is an integrated set of modules that supports an organization’s need to plan, attract, develop, reward, engage and retain talent. The modules offer functionality that includes the areas of workforce planning, recruiting and onboarding, performance appraisal, goal management, learning management, competency management, career development, succession and compensation. The functional modules align with the key human capital management (HCM) processes of: • Plan to source • Acquire to onboard • Perform to reward • Assess to develop A boost to demand in the TM suite market has resulted from the delivery of functionality to improve workforce engagement and collaboration. Further, growing demand for greater analytical capabilities and predictive insights to improve decision making in relation to workforce actions has improved the market’s general health.