With rising labor costs, a skills gap, and the recent “great resignation,” human capital management is a strategic imperative. It is no longer just about back-office functions but about talent retention and increasing productivity while keeping costs down. Vendors are responding to these challenges by developing new capabilities such as self-service to reduce time on administrative tasks and artificial intelligence to automate processes and make personalized recommendations to employees, managers, and HR staff. These trends, and others, are covered in Avasant’s Human Capital Management Suites 2022 RadarView™.
The report is a comprehensive study on HCM suites. It takes a close look at the leaders, innovators, disruptors, and challengers in this market. It addresses the need for enterprises to optimize their HR processes with a unified HR platform and identify the right vendor. It also highlights key trends in the HCM software market.
We evaluated 32 vendors using three dimensions: product maturity, enterprise adaptability, and future readiness. Of the 32 vendors, 14 are recognized as having brought the most value to the market over the past 12 months.
The report recognizes platform vendors in four categories:
- Leaders: ADP, Oracle, SAP, UKG, and Workday
- Innovators: Ceridian and Cornerstone
- Disruptors: Infor, Microsoft, Paylocity, and Sage
- Challengers: Adrenalin, Cegid Meta4, and Paycom
Figure 1 from the full report illustrates these categories:
“HCM systems are no longer just about back-office record-keeping and regulatory compliance,” said Frank Scavo, president of Avasant Research. “There are real opportunities to improve productivity and enrich the employee experience across the entire workforce.”
The full report provides a number of findings and recommendations, including the following:
- Enterprises are adopting HCM suites to streamline HR processes, improve employee engagement, and provide real-time reporting.
- Platform providers are developing solutions powered by artificial intelligence, machine learning, robotic process automation, and optical character recognition to digitize paper-based processes, build employee skills, offer personalized recommendations, and achieve pay equity.
- Platform providers are integrating HCM suites with supply chain management systems to overcome workforce-related supply chain challenges.
“With the rise of the global workforce and remote working, HCM suites remain a top priority for enterprises,” said Gaurav Dewan, associate research director with Avasant. “These leading platforms leverage digital technologies to improve employee engagement and address the pressing pain point of today’s industry—high attrition rates.”
The full report also features detailed profiles of 14 platform vendors, including their solutions, offerings, and experience in assisting enterprises in HCM digital transformation.
This Research Byte is a brief overview of the full Human Capital Management Suites 2022 RadarView™ (click for pricing).