Talent war ups the ante for automated Employee Performance Management

New AberdeenGroup Report reveals that 98% of Best in Class firms have already automated EPM

BOSTON, July 18, 2006 -- The automation of employee performance management (EPM) is now table stakes for leading in the talent management game. According to a newly published AberdeenGroup report, "The Employee Performance Management Benchmark Report," all but 2% of Best in Class organizations have installed a licensed or on-demand EPM application. Only 59% of all other firms have such automation.

The report's key findings also show that salaried individual contributors receive special treatment. One hundred percent of Best in Class organizations provide documented annual performance feedback while 63% provide both annual and project-based feedback to this group. These workers also receive more mentoring, development planning, and functional skills training than other workers.

"The data indicates that Best in Class organizations have taken their game to a new level," says David Foster, AberdeenGroup's Human Capital Management Practice Leader. "By investing time and money in the salaried workforce, they extract a better return on their human capital investment. Meanwhile, 71% of the rest report manual or spreadsheet systems and 27% say that they cannot make the business case for EPM automation. Market leaders are making that case for them."

Foster offers the following recommendations for EPM process improvement:

* Define and track human capital effectiveness and efficiency measures for both financial and operational outcomes.

* Evaluate current EPM processes; learn what percentage of employees receives actionable feedback.

* Upgrade current EPM workflows, then automate to increase employee coverage and frequency.

* Check goals and metrics for vertical and horizontal alignment, especially after new strategies are introduced.

"The Employee Performance Management Benchmark Report" examines over 150 companies, including FedEx, Parker Hannefin, Accenture, and Cadbury Schweppes, showing how they differentiate themselves in EPM process, organization, data management and technology.

This report has been made available to the public due to the underwriting of: Pilat HR Solutions, HRsmart, Integrated Performance Systems, and SuccessFactors. To obtain a complimentary copy of this report go to:

AberdeenGroup, Inc. provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives and the solution providers who serve them.

For more information, visit or call 617-723-7890.

Contact: David Foster, AberdeenGroup

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