Traditionally the HR management has been a relatively low priority for companie, despite the fact it nourishes the company’s workforce, its biggest asset. This mindset has begun to change in recent years as companies have come to realize the importance of human resource management and the impact it has on the company’s bottom line. Furthermore the ‘war on talent’ has also added to the growing interest in developing more strategic HR strategies in small and large companies alike.
Although more and more focus is being put on HR, many companies are still not setting themselves with software to optimize the many processes involved in managing a workforce. A recently study by ADP Research found that 54% of HR managers are constantly concerned with expense of managing their workforce, yet only 22% have formal processes to analyze the key components of human resource management. Luckily with 57% of companies planning to make a major new investment in HR software in the near future, change is on the horizon.
Companies are starting to make smarter investments in their human resources and the systems used to manage them. For example, one-third of the companies surveyed said they would be investing more dollars into their HR system in the coming year and 29% specifically stated they would invest in new core HRMS.
The future is bright for the HR software market as IDC research reports show an increase in HR software purchases due to the innovation of cloud solutions and advanced analytics. In fact, IDC forecasts global revenue for HR applications will grow from 9.2 billion in 2012 to 13.5 billion by 2017 with an overall growth rate higher than the total ERP market!
Initial HR applications were used for basic processes such as payroll and benefits processing, over time they have come to be more complex. Today HR applications are end-to-end solutions that integrate with ERP systems, can meet the demands of a more mobile workforce, and keep up with emerging trends like cloud computing. Some of the emerging trends in the HR software world were noted in a 2014 study by global consulting firm Towers Watson which found that HR solutions are rapidly gaining ground:
As you consider your HR management strategy and evaluate your software options, there is a lot to think about. We’ve put together a Buyer’s Guide to help you avoid common HR software selection mistakes and decide what exactly you need in a system. Click below to get your copy.