Updated for 2019
Valued at over $15 billion globally, the human resources technology market is one of the fastest growing segments in business IT — and it shows no signs of slowing down.
Why are organizations so eager to get a piece of the HR software pie?
Besides the fact that every business with employees needs to perform core HR functions (hiring, onboarding, payroll and benefits administration), it’s because these systems are now more powerful than ever.
As corporate software has moved to the cloud it’s helped businesses stay agile, mobile, and analytics-driven. Along with the evolution of basic HR systems, new tools for social and referral recruiting, performance management, assessment science, online learning, and workplace wellness are begin to transform companies.
HR platforms are now used across organizations, and have user-friendly tools to handle almost any human capital management need.
Forget what you know about clunky, aging setups. These new systems are not your grandma’s HR software.
HR Software Market Trends
Big Businesses, Big Struggles
Companies of all sizes struggle with workforce challenges such as developing leadership candidates, improving employee engagement, and simplifying performance management. Though HR best practices and technology are swiftly evolving to address these demands, large enterprises continue to face a different set of challenges than their small business counterparts.
Perhaps the biggest issue facing large companies is on-premise legacy software in need of an upgrade. According to research by HR consultant and thought leader Josh Bersin:
“The average HRMS system in large companies today is more than five years old and more than half are over seven years old. And enterprise software becomes nearly obsolete in seven years, leading most companies to shop around.”
In other words, these on-premise HR systems are about the same age and relevancy as a first generation iPhone (which Apple tactfully refers to as “vintage”). These outdated systems create numerous internal issues: data silos, inefficient processes, clunky interfaces, low adoption rates, and integration issues with newer software. Adopting a modern talent management system that supports a mobile, remote, and global workforce can solve these issues.
Essential HR Software Features
HR departments aren’t the only ones using talent management software — this technology is for employees and job candidates, too.
From complex payroll and compliance needs, to self-service access, to succession and workforce planning that builds a talent pipeline, market leading HR software for enterprises goes beyond automating administrative tasks and offers an end-to-end solution that helps manage all people processes.
For large enterprises, integration with ERP software and other company technology is essential. Many HR vendors offer “best of suite” solutions that provide core HR functions as well as strategic talent management, with easy access to data and analytics. On the other hand, you’ll also find best of breed vendors who provide specialized software so you can have tailored functionality for specific job duties and niche problems.
While many companies are accustomed to managing multiple HR and payroll systems, and over 33 percent would be willing to “sacrifice features in order to get a single vendor solution.” No matter which vendor(s) you choose, you’ll need an intuitive solution that offers some combination of the following modules:
- Payroll administration: compensation, benefits, and absence management
- Social and referral recruiting with applicant tracking: social analytics, internal job board, branded career portal
- Talent management: onboarding, goal management
- Performance management: align, assess, and optimize workforce capabilities
- Learning management: online courses, career and development planning
- Succession and workforce planning: build, manage, and evaluate succession plans for essential jobs
- Employee engagement/wellness: corporate social network, health initiatives
- Collaboration tools, such as instant messaging
- Reporting: analyze talent supply and demand,
- Mobile access: web portal or app for employees, managers, and candidates
Whether you choose to use multiple suites through one vendor or choose one core program and add a few integrations, having a seamless system for all human resources needs is beneficial. For example, you can seamlessly access payroll data from an ERP system for other business processes, which eliminates duplicate data entry and provides easy access to data across the entire organization for accurate reporting.
Top HR Solutions for Enterprises
Let’s explore some of the market leading HR software vendors available for enterprises. To receive personalized HR software recommendations for your enterprise, click the banner below to get started.
HR software is right for your enterprise?
Workday
Workday is designed to provide enterprise-grade solutions at a much lower price point than its A-list competitors. Their cloud HCM enterprise platform helps businesses manage HR processes and record-keeping on a global scale. Workday offers benefits administration, payroll, time tracking, and workforce planning, as well as an intuitive self-service portal for secure access to role-specific information. The system also goes beyond core HR to provide recruiting and talent management features, such as onboarding automation and performance management.
Saba
Saba is cloud-based talent management solution created to improve the way you hire, develop, and engage your workforce. Their suit consists of six modules that cover the following areas: learning, performance, planning, succession, recruiting, and compensation.
Saba has acquired several innovative software companies to continually expand their offerings, and the company is now positioned as a frontrunner in the learning management systems (LMS) market. Their “Learning@Work” solution provides personal and relevant class recommendations, social learning opportunities, and coaching tools. Saba has a sophisticated compliance and certification system, along with collaborative and social learning features.
Skillsoft
Skillsoft is a premiere provider of cloud based online and elearning solutions to customers worldwide, including global enterprises. With over 6,000 customers and more than 19 million learners, Skillsoft is a pioneer in the field of learning. They offer a comprehensive learning e-library to develop off-the-shelf and custom learning programs tailored to individual businesses. Skillsoft’s courses, books and videos have been developed by industry leading learning experts to ensure that they maximize business skills, performance, and talent development.
iCIMS
iCIMS is a best-of-breed talent acquisition system, making it an excellent choice to help you streamline the hiring process and find great talent. The recruiting world changes every day, and many suite providers don’t offer hiring tools powerful enough to satisfy the needs of enterprise recruiters. iCIMS Recruit is the company’s flagship product. It includes an applicant tracking system, mobile optimized recruiting portal, and robust communication and analytics tools.
iCIMS’s more unique features include built in recruitment marketing automation that helps engage candidates before they receive an offer, and integrated video screening that allows candidates to submit personal showcase videos as part of the virtual screening process. The software also supports employee referral programs, robust searching and reporting functions, and is compliant with federal Equal Employment Opportunity standards.
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Now that companies have adopted software to automate and streamline manual processes, HR professionals are left to focus on more strategic workforce initiatives — like culture, engagement, retention, and workforce development. HR software is no longer just a system of records. Modern tools are providing companies with valuable technology that can help improve employees’ performance, skills, health, and even happiness.
HR technology has evolved to meet the unique needs of global enterprise, and there are more options to help improve your business than ever. If you need help choosing the best solution for your business, use our HR software product selection tool to get free personalized recommendations based on your industry, company size, and desired features.
