United States
US 43231530 | Procurement

Employee Performance Management Software in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
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.

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What’s included in this market coverage

IBISWorld's research coverage on the Employee Performance Management Software procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the Employee Performance Management Software market in the United States includes Employee Performance Evaluation Software, Employee Goal Setting & Tracking Software, Employee Compensation Analysis, Employee Appraisals & Feedback and Employee Learning Management. Standard coding in this coverage includes ISIC-582-Software publishing, NACE-58.29-Other Software Publishing, NAICS-513210-Software Publishers and UNSPSC-43231505-Human resources software.

What common market terminology is included?

Common market terminology included in the Employee Performance Management Software procurement coverage includes 180 Feedback (Performance appraisal method wherein subordinates provide feedback to their supervisors.) and 360 Feedback (Performance appraisal method wherein subordinates, supervisors, and many times peers provide each other with performance input.).

What companies are included as top suppliers?

The top companies covered in the Employee Performance Management Software procurement report as suppliers are 15Five, Inc., Cornerstone OnDemand, Skillsoft Limited, Sage Group Plc and International Business Machines Corporation.

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the Employee Performance Management Software market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per 100 users per year, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the Employee Performance Management Software market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting Employee Performance Management Software procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on Employee Performance Management Software market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the Employee Performance Management Software market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for Employee Performance Management Software?

The 2026 benchmark market price for Employee Performance Management Software is $7800 per 100 users per year. Prices have increased at a CAGR of 2.05 from 2023-26.

Who are the top vendors in the Employee Performance Management Software market?

The top vendors in the Employee Performance Management Software market include 15Five, Inc., Cornerstone OnDemand, Skillsoft Limited, Sage Group Plc and International Business Machines Corporation.

What industries supply the Employee Performance Management Software market?

The top industries supplying the Employee Performance Management Software market are Computer Manufacturing in the US, Semiconductor & Circuit Manufacturing in the US, Data Processing & Hosting Services in the US, Wired Telecommunications Carriers in the US, Intellectual Property Licensing in the US and Law Firms in the US.

What is the supply chain risk for Employee Performance Management Software?

High market concentration strengthens vendor leverage despite low overall supplier risk. The employee performance management software market is highly concentrated, with a small group of established SaaS providers dominating enterprise adoption. Vendor risk is low due to stable recurring revenue models and strong product ecosystems. However, this concentration limits competitive pricing pressure and strengthens supplier negotiating power. Buyers should anticipate firm pricing structures and prioritize multi-year agreements, competitive benchmarking, and bundling opportunities within broader HR technology stacks to maintain leverage.

What factors affect the price of Employee Performance Management Software?

Demand directly impacts the pricing of employee performance management software, as higher demand allows providers to charge premium prices, especially when the software includes unique features or superior service quality. For example, during times of increased remote work and performance tracking, demand surges, allowing vendors to raise prices due to limited supply and heightened competition.

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