Beefed-Up HCM Systems Helping Companies Address HR Talent Gap

November, 2021

Business leaders recognize that success depends on recruiting and retaining the best people. But this puts increasing pressure on HR personnel, who are already stretched with the day-to-day demands of routine HR processes and compliance activities. One solution is cloud-based and artificial intelligence (AI)-enabled HCM systems to help improve the efficiency and effectiveness of HR personnel.

As seen in Figure 1 from our full report, HCM Adoption Trends and Customer Experience, HCM systems have a high adoption rate. However, three other metrics—investment, ROI, and TCO—are stuck in moderate. And, more concerningly, overall customer satisfaction is low.

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The satisfaction rating for HCM continues to be low due to the challenges of implementing and integrating the solutions and the difficulty in measuring benefits. However, HCM providers are addressing these shortfalls by turning to the cloud. A cloud HCM solution can address integration challenges by providing easier transitions between other systems and applications within the organization. It also offers advanced analytics and functions which can improve satisfaction ratings.

“Artificial intelligence is one tool that can make life a bit easier for HR personel,” said Tracell Frederick, research analyst/editor for Computer Economics, a service of Avasant Research, based in Los Angeles.

“AI integrated into HCM systems has the capability to use data to predict future trends. These insights can be used to close gaps and address employee and organizational needs.”

As digital adoption, automation, and hybrid working become more common, addressing digital skills shortages has become a priority. To reduce the talent gap, incorporating AI, automation, and machine learning (ML) into HCM systems aim to boost the efficiency of HR processes. For example, AI can improve the productivity of the recruiting function by identifying promising candidates. ML algorithms can sift through resumes and rank candidates that match closely with job requirements. Moreover, once hired, AI can track an employee’s progression, recommending career paths and identifying potential promotions based on the employee’s goals and appraisals.

Our full report quantifies the current adoption and investment trends for HCM technology, as well as the benefits driving companies to expand their HCM implementations. We assess these trends by organization size, sector, and geography and look at the ROI and TCO experiences of organizations that have adopted HCM. We conclude with practical advice for those planning new investments in HCM.


This Research Byte is a brief overview of our report on this subject, HCM Adoption and Customer Experience. The full report is available at no charge for subscribers, or it may be purchased by non-clients directly from our website (click for pricing).