The global human capital management market is anticipated to witness significant growth owing to increasing focus of organizations on recruitment processes to select right candidates. Shortlisting potential candidates on the first go can reduce decent operational cost for organizations. Human capital management is an advanced enterprise solution that can automate recruitment process and shortlist quality candidates. Companies of any size can use this software to simplify their human resource management.
Increasing use of cloud-based HCM software in companies to manage recruitment processes and employees efficiently can augment market growth. Growing adoption of cloud-based technologies, such as software as a service (SaaS), in large, and small and medium-sized enterprises (SMEs) can impel product demand. HCM software automates the complex clerical tasks related to payroll, employee data, and administration. In addition, the software can shortlist potential candidates for a particular job in the company by analyzing a wide range of applications available in database. It can also send interview invitations and confirm interview slots to reduce time and cost of the recruitment process. Profitability and high chances of recruiting right candidate can impel demand for HCM software among organizations. This, in turn, can augment growth of the market in the coming years. Moreover, rising demand for cloud storage in companies to store essential data at an affordable cost can spur market growth. It enables central administration to handle human resource activities and resources. Cloud technologies allow consumers to use SaaS without purchasing it and access remote services and data using web browser. This factor can drive the market in the coming years.
Data security issues associated with cloud-based deployment of HCM platform can hamper market growth. In addition, organizations’ resistance to adopt new technologies can restrain market growth. However, shifting preference for cloud based software solutions in organizations can create lucrative opportunities for the market.
The market can be segmented on the basis of deployment, component, and application. Based on deployment, the market can be bifurcated into on premises and cloud. In terms of component, the market can be divided into services and software. On the basis of application, the market can be categorized into healthcare, retail, BFSI, government, and hospitality.
North America is anticipated to witness substantial growth owing to growing need to automate HR processes, such as performance management, talent management, and compensation management. Presence of key market players offering technologically advanced products can augment regional market growth. For instance, Microsoft collaborated with ADP to integrate ADP’S Workforce Now HCM platform solution with Microsoft Dynamics 365 Business Central. With this collaboration, the companies are allowing their clients to access an overall view of their business and human resource data. Similarly, Paychex added four new features, including workflow approval tools, performance management, real-time analytics, and an events calendar, to its HCM platform. They are designed to help employers in achieving their talent management goals.
The market in Asia Pacific is projected to expand significantly in the coming years owing to increasing number of small and medium-sized enterprises (SMEs). These enterprises are likely to hire quality employees to execute their operations efficiently. This, in turn, can impel demand for technologically advanced HCM tools in developing countries, such as India, Japan, and China. Mobile-centric internet usage and growing adoption of cloud technology can stimulate regional market growth. Moreover, supportive government initiatives to promote use of cloud-based systems and digitization of business processes can augment market expansion in the coming years. Launch of advanced HCM products by market players can gain traction among consumers. For instance, Kronos introduced an advanced workforce dimensions HCM. This new package contains responsive design, an artificial intelligence engine, embedded analytics, and the extension of the D5’s platform capabilities. It is intended to unify performance management, recruitment process, and workforce management in organizations.
Some of the leading companies operating in the human capital management market are
IBM Corporation, Oracle Corporation, SAP SE, ADP LLC, and Epicor Software Corporation.
Research Support Specialist, USA