Human Resource Management Systems (HRMSs) were designed to help HR professionals stay on their toes as priorities shift and talent management tasks take on new forms.
Today, businesses are more focused on their employees than ever before. Employee engagement, collaboration and performance have risen to the top of the “HR concerns” list.
Although HR has been slow to adopt the technology, the HRMS market has seen major growth since 2010.
In fact, CB Insights reported that HR tech investments hit an all-time high of $2.4 billion in 2015 (a 60% increase from 2014). Growing demand has caused HRMS vendors to change their offerings to address the shifting focuses of HR.
Top Market Trends
In HR Technology Disruptions for 2017: Nine Trends Reinventing the HR Software Market, prominent HR market analyst Josh Bersin acknowledged that new HR practices will open up the doors to emerging technology. He reports, “The entire marketplace is shifting from tools that automate traditional HR practices to platforms and apps that make life at work better.”
As HR technology impacts HR’s daily routines, some clear market trends are emerging for 2017:
Recently, organizations have adopted data-driven methods to making decisions, teaching us that analytics is important for business evaluation.
HR is starting to come around to that idea as well.
HRMS vendors have improved their solutions so HR departments can leverage “people data” from current and potential employees. Based on information about workers’ behavior and engagement, HR can harness the power of predictive analytics to improve areas like recruitment and turnover, benefits and offerings, and employee performance just to name a few.
HR technology has steadily been moving from on premise solutions to cloud-based ones (originally known as “hosted” solutions).
Now, as HR rides along the new wave of technology, mobile solutions are moving away from cloud access through a web browser to access with mobile apps.
HR has been slow to adopt mobile versions of current HRMS solutions. However, HR apps will continue to gain traction as they bring a whole new experience to HR managers and employees alike with user-friendly features.
As cloud and mobile applications become more prominent over the upcoming year, vendors will look to implement Platform-as-a-Service strategies.
Platform-as-a-Service is a category of cloud computing services that allows users to develop associated applications without the need to build an infrastructure from scratch. For HRMS solutions, companies can build on a vendor’s feature offerings to meet specific needs.
Bersin explains the strategy in his Disruptions for 2017 report, saying “PaaS technologies let vendors create an array of partner applications that leverage and extend their core offerings – a family of exciting, intimate apps connected to the platform.”
Emerging HRMS Vendors
A variety of HRMS solutions are currently available on the market. We’ve looked at some of the top vendors in our HRMS Comparison Guide.
Several HRMS vendors are focusing more on “people management” and other emerging trends. Here are the vendors you should keep an eye on in 2017:
Date founded: 2009
Location: Boulder, CO
What’s unique: RoundPegg harnesses the power of both technology and psychology to evaluate an organization’s culture, offering quantifiable information called “culture data.” Analytics tools are used to provide insights into employee engagement and motivation so companies can make better “people decisions” about hiring, training and coaching and engagement.
Date founded: 2005
Location: Pleasanton, CA
What’s unique: Workday is a cloud application that combines an organization’s finance and HR tasks on one user-friendly platform, giving a full view of a company’s progress. It’s a great example of an integrated HR suite, providing data-driven tools for hiring/onboarding, talent management, benefits and more. Workday is agile enough to easily let users work from both desktop and mobile devices and remain up-to-date with compliance regulations. Its ability to perform in-depth analysis can help companies make decisions about position changes to improve performance.
3. Cornerstone OnDemand
Date founded: 1999
Location: Santa Monica, CA
What’s unique: As a cloud-based talent management suite, Cornerstone OnDemand offers data-driven HR solutions for day-to-day tasks and self-service tools to improve employee engagement. From onboarding to succession planning, Cornerstone OnDemand can give HR a clear view of employee performance, and it’s now able to predict when mandatory compliance training is required.