Procurement Market Intelligence Report
Employee Performance Management Software
Sourcing Guide & Market Intelligence
Smarter cost management starts with comprehensive market intelligence
United States
Global
Quick Navigation
Employee Performance Management Software Global Overview
Definition
Summary
Employee performance management (EPM) software is used to evaluate individual employee performance. Additional services may include employee goal setting and tracking, compensation analysis, self-appraisals, peer appraisals, 360 feedback, and learning management tools. Providers offer this software through the cloud or through on-premise deployments. Buyers include government agencies and businesses.
This Report Includes:
- Employee Performance Evaluation
- Employee Goal Setting & Tracking
- Employee Compensation Analysis
- Employee Appraisals & Feedback
- Employee Learning Management
Not in this Report:
- Employee Benefits Administration
- Payroll Services
- Compliance Services
- Recruiting & Onboarding Services
Take the ProcurementIQ products and data tour
Explore live samples of price trend forecasts, price driver projections, forward-looking cost structure data and more.
Global Employee Performance Management Software Procurement Trends
Discover the top international trends affecting procurement in the global Employee Performance Management Software market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Global Employee Performance Management Software Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 590 |
| #2 United States | 450 |
| #3 China | 295 |
Explore supplier concentration across the globe
We've uncovered the 11 top regions for global procurement, based on feedback from our most strategic clients. Access vendor counts for each unique region when you subscribe.
Geography Drilldown - US
Average Cost of Employee Performance Management Software
United States
2026 Market Pricing$1,000.00 to $XX,XXX.XX
per 100 users per yearAverage Price
Prices in the Employee Performance Management Software market range from $1,000.00 to $XX,XXX.XX, depending on Appraisal Features, Additional Features, Training and Support. For example, lower prices are associated with 180 feedback ($1,000 to $7,500 per 100 users per year), whereas higher prices are associated with Upward feedback ($2,500 to $15,000 per 100 users per year), 360 feedback ($2,500 to $15,000 per 100 users per year) and Self-appraisal ($2,500 to $12,000 per 100 users per year).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Employee Performance Management Software Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Employee Performance Management Software market, prices in the US have grown 0.5% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Employee Performance Management Software
Total cost of ownership is Medium in the Employee Performance Management Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Negotiated Before
Implementation
Installation
Billed During
Annual Fees
Training
Upgrades
Unforeseen
Downtime
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.2 in the United States. Buyer power is most positively impacted by Price Driver Volatility. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Intellectual Property Licensing Firms
- Computer Manufacturers
- Data Processing & Hosting Service Providers
2nd
Tier Suppliers
- Law Firms
- Semiconductor & Circuit Manufacturing
- Wired Telecommunications Carriers
Biggest Employee Performance Management Software Suppliers in the US by Revenue
The largest Employee Performance Management Software vendors by revenue in the US are 15five, Inc., Sage Group Plc and Automatic Data Processing, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Oracle Corporation | Global | AUSTIN, CA | >10,000 | 10-15 | ||||
| Cornerstone OnDemand | Global | SANTA MONICA, CA | 1,001-10,000 | 10-15 | ||||
| International Business Machines Corporation | Global | ARMONK | >10,000 | 15-20 | ||||
| Automatic Data Processing, Inc. | Global | ROSELAND, NJ | >10,000 | 15-20 | ||||
| Workday, Inc. | Global | PLEASANTON, CA | >10,000 | 15-20 | ||||
| Sage Group Plc | Global | Newcastle, UK | >10,001 | < 5 | ||||
| Skillsoft Limited | Global | Clonskeagh, IE | 1,001-10,000 | < 5 | ||||
| 15five, Inc. | Global | San Francisco, CA | 51-100 | < 5 | ||||
| Talentia Software | Global | Paris, FR | 251-500 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Employee Performance Management Software market is 15.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Buyers have many viable and competitive foreign vendor options in the market because digital distribution allows buyers to purchase and access software without consideration of provider location.
There is little regulation of EPM software, and the pace of regulatory change is slow.
Supply chain risk in the EPM software market is low overall, thereby reducing stress for buyers and strengthening the overall market.
Financial risk in the EPM software market is low, thus benefiting buyers by reducing the likelihood of service disruptions due to supplier bankruptcy.
High market share concentration typically hurts buyers by stifling competition between suppliers, thereby making market leaders less likely to compete or negotiate on price.
The United States is a net importer of computers, meaning it imports more than it exports. This should not impact the employee performance management software market as they do not heavily rely on the price of computers.
Supplier Information
Cornerstone OnDemand
Cornerstone OnDemand is a private company operating globally in the information sector. The company's offerings include employee performance management software and learning management software. Founded in 1999, the company is currently headquartered in SANTA MONICA, California, United States of America with... Subscribe to learn more
Oracle Corporation
Oracle Corporation is a global technology company that provides enterprise information technology (IT) products and services. It comprises three businesses: the Cloud and License business, which offers Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, deployed using... Subscribe to learn more
Automatic Data Processing, Inc.
Automatic Data Processing, Inc. is a public company operating globally in the information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include recruitment software, human resources software, aca compliance... Subscribe to learn more
International Business Machines Corporation
International Business Machines Corporation (IBM) is a global integrated computer technology, hardware, software, and services provider. It organizes its business into four segments: Software segment, which provides software solutions for a hybrid cloud platform, data and artificial intelligence, automation,... Subscribe to learn more
Workday, Inc.
Workday, Inc. is a public company operating globally in the information sector. The company's offerings include recruitment software, procurement software, human resources software, project management software, grants management software. Founded in 2005, the company is currently headquartered in PLEASANTON,... Subscribe to learn more
15five, Inc.
15five, Inc. is a private company operating globally in the information sector. The company's offerings include employee performance management software. Founded in 2011, the company is currently headquartered in San Francisco, California, United States of America with an estimated 64 employees. Subscribe to learn more
Sage Group Plc
Sage Group Plc is a public company operating globally in the information and professional, scientific & technical services sectors. The company's offerings include order tracking software, grants management software, erp software, financial analysis software, accounting software. Founded in 1988, the company... Subscribe to learn more
Skillsoft Limited
Skillsoft Limited is a private company operating globally in the information, professional, scientific & technical services and educational services sectors. The company's offerings include online compliance training, employee performance management software, computer training services, safety training services,... Subscribe to learn more
Talentia Software
Talentia Software is a private company operating globally in the information sector. The company's offerings include employee performance management software. Founded in 1988, the company is currently headquartered in Paris, Île-de-France, France with an estimated 430 employees. Subscribe to learn more
Accelerate the vendor selection process
Get a clear picture of the competition in a market and discover which vendors are best-suited for your sourcing needs. Our supplier profiles include hard-to-find financial ranges for private companies, cover public company data and feature an interactive competitor matrix.
Procurement Management KPIs for the Employee Performance Management Software Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Current Ratio (Assets/Liabilities). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Technical Support and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Total resolution time Number of resolved tickets |
The average resolution time represents the average amount of time it takes to resolve a support ticket. The average resolution time can be used to determine a company’s support responsiveness. |
| Current Ratio (Assets/Liabilities) |
|
Current assets Current liabilities |
The current ratio represents a company’s liquidity. The current ratio can be used to determine a company’s ability to pay its short-term obligations. |
|
|||
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Service
What is the availability of your customer account and technical support services?
How do you tailor your services to fit the needs of differently sized buyers?
User-Friendliness
Does your service have mobile functionality? If so, is this through website optimization for mobile devices or through native mobile applications?
What new features or functionality have you added in the past year?
Reputation
Have you had any previous experience with clients specific to the market in which we operate?
Who are your top five clients and how long have they been your clients?
The ultimate prep for procurement negotations
View all 28 negotiation questions for this category when you subscribe.
Employee Performance Management Software RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and operations and detail the purpose of employee performance management software in their organization.
Buyers should provide details on the size of their organization.
Statement Of Need
Buyers should provide the EPM survey software licenses needed and the type of users.
Buyers should detail the software features they require (e.g., multi-departmental concurrent access, data migration abilities, data visualization capabilities, workflow management, and system security) and whether the system must meet any compatibility requirements with existing programs.
Project Budget
Buyers should specify the number of expected software users and level(s) of software access required.
Buyers should detail the contract term for annual ongoing costs (e.g., upgrade and maintenance charges and license fees).
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
