Human Capital Management Suite Adoption Surges Under Covid-19
October 27, 2020 COVID-19 has prompted enterprises to accelerate adoption of Human Capital Management (HCM) suites, upping the deployment rate. The pandemic has forced enterprises to seek low-and no-touch solutions for HR operations. Consequently, organizations are accelerating their digitization and automation of manual HR processes. This has led to a 1.5X surge in the number of active discussions between buyers and HCM suite vendors. Workforce management, compensation, learning and development, recruitment, and employee engagement have emerged as the most sought-after functions for leverage of HCM suites. These and other trends are explored in Avasant’s new report - Human Capital Management Suites 2020 RadarView™, a comprehensive study of enterprise HCM suite adoption trends and the vendor landscape. The report addresses the need of enterprises to understand the capabilities of key HCM suite vendors that are best-suited for human resource function transformation, and provides in-depth analyses and perspectives for the leaders, innovators, disruptors, and challengers in this space. Avasant evaluated 20+ vendors offering HCM suites, using a rigorous methodology against the dimensions of product maturity, enterprise adaptability, and innovation roadmap. Of those 20+ vendors, we recognize 12 that have brought the most value to the market during the past 12 months. The report recognizes HCM suite vendors in four categories:
- Leaders: ADP, Oracle, SAP, Ultimate Software, Workday
- Innovators: Ceridian, Infor, Ramco
- Disruptors: Cornerstone, Microsoft
- Challengers: Paycom, Paylocity
Figure 1“The COVID-19 pandemic is putting pressure on CHROs to optimize cost, enhance productivity, and improve employee experience. This has warranted the need for comprehensive digital transformation of the HR function,” said Avasant Research Leader Saurabh Verma. “Deploying an HCM suite is one of the most effective ways to transform HR operations. With HCM vendors integrating OCR, NLP, ML, RPA, and advanced analytics and offering pre-built connectors and bolt-on apps, organizations can meet their immediate objectives and also be ready for future challenges.” Key findings from the report include:
- COVID-19 has prompted enterprises to accelerate adoption of HCM suites, upping the deployment rate.
- Modularization of HCM function and rich availability of connectors have sped-up enterprise adoption.
- Evolution of marketplaces with ready-to-deploy applications has enhanced capabilities of HCM suites.
- Product evolution and low initial set-up cost models are driving proliferation of HCM suites in the SMB segment.
- HCM suite vendors are increasingly deploying RPA via acquisitions, partnerships, and in-house development.
- HCM suite vendors are integrating AI capabilities to automate complex processes