At a high level, let me summarize what's going on - and as always we encourage you to reach out if you'd like to discuss more.
The HR Technology market tends to go in cycles, as companies install new solutions and go through a 5-7 year cycle of implementation, rollout, and then replacement. In several areas of HR we are nearing the end of a cycle, so let me summarize some of these evolutionary changes - then you can read the report for more detail.
First, there is a massive replacement of licensed, traditional HRMS systems taking place.
More than 40% of all companies are replacing or plan to replace their core HRMS systems. Cedar-Crestone believe 60% of all companies are working on a new enterprise HR systems strategy and 46% are increasing budgets. Interestingly, Stacey Harris (one of our alma maters) also found out that companies with new, recently upgraded HRMS platforms are spending 22% less per employee on HR, so they are seeing financial benefits (even though the cost of implementing new HR technology is high).
These new HRMS systems are cloud based, and they are coming from vendors (Oracle, SAP, Workday, ADP, Ceridian, Ultimate Software, and others) that have mostly built-out talent management suites. Almost 26% of the companies in the Cedar-Crestone survey are doing "rip and replace" - totally throwing away their old systems.
I just hosted a panel with Delta Airlines (SAP implementation), Macy's (Oracle implementation), and United Technologies (Workday implementation) and we discussed the highly complex, multi-year process these companies are going through to replace their core technology. In every case the company selected a vendor that had particular capabilities that met their needs, and in each case there are many incumbent systems, payroll providers, and outsourcers involved.
Erica Volini, Deloitte's service line leader in HR Transformation and Technology, explained clearly that there are no "best products" in this space - it's all a matter of where you're coming from, where you're going, and the vendor who's roadmap best matches yours.
Second, the talent management market is being redefined.
I've been in this market for 15+ years and the standalone market for learning, recruitment, and other talent applications is being redefined. The LMS markets is being disrupted by new video-based learning solutions, many of which will be complimentary to installed systems. There are a host of new, disruptive recruitment vendors who are clearly going to change the applicant tracking market. In fact I believe that market is ripe for disruption, since most ATS systems are quite old (as are the vendors). And the market for new performance management systems is emerging.
I know, the ERP vendors do all this stuff. Well even so, companies of all sizes will often either A) not use the ERP vendor's products, or B) can't afford the ERP solution - so these new vendors have a huge marketplace ahead. As always, once the gorillas emerge they will likely be acquired by the big HRMS/Payroll providers, but that's years ahead.
Third, the market for feedback, culture, and engagement apps is here.
I wrote extensively on this in the article "Feedback is the Killer App." The traditional annual engagement survey is going the way of the dinosaur (slowly however) and a new breed of pulse tools, feedback apps, and anonymous social networking tools has arrived. If you aren't exploring this space you are missing a huge opportunity to make your company better. I wont list the vendors here, but every one of them is growing and I see this as a whole new segment.
Fourth, we have a maturing market for employee well-being, wellness, and productivity systems.
We have published a lot of research which shows that employees are overwhelmed, and right now I'm working on next year's Deloitte Human Capital Trends (click here to participate) and you'll see even more on this coming up. To deal with this companies are now introducing some very exciting and well developed systems that let your employees join health-related challenges, track their fitness, collaborate with their health care providers or others, and just help balance their work-life.
Personally I think this will be a huge market going forward, and even device manufacturers and exercise equipment providers are developing these systems.
Fifth, the era of People Analytics is here.
I just published another article on the Ten Things We Have Learned in People Analytics. In short, this space is now maturing. While most companies are early in their implementations and solutions, there are now a good set of organizations that have implemented strong people analytics strategies, and almost every vendor now has some form of predictive analytics embedded into their product.
Rather than seeing dashboards, you're likely to see "recommendations"- so some of this technology is invisible behind the scenes. Tools to predict flight risk, assess high potential job candidates, even find toxic employee behavior - are all in the market today. While many are not highly proven yet, they all work to a degree, providing great value to any company.
Apps as the Platform of the Future
The final note I'll make here is that "appification has arrived." As you'll read in the report, mobile apps are the future - and they are different and more powerful than typical browser-based web systems. Not all the killer apps have been created yet, but most of the new, exciting HR applications coming are apps first, then web systems later.
This does not mean they aren't powerful and complex behind the scenes, but they expose themselves as pinch and swipe on your phone - making it easier than ever to embed location and peer to peer collaboration into the system. We'll write more on this soon.
If you haven't been evaluating HR technology lately, you should now. The investment and venture capital pouring into new companies is astounding, and many of these new tools are transformational in their value.
It's an exciting year to be an HR professional: the worlds of technology, mobile computing, analytics, and behavioral economics are all coming together for you! We look forward to helping you understand and implement some of these exciting new solutions.
Add to del.icio.us Digg ThisDZone it!
Saturday, October 24, 2015 05:15
Pingback from scoop.it
HR Technology For 2016: Ten Disruptions On The ...
Posted by scoop.it
Saturday, October 24, 2015 06:14
Pingback from blog.smashfly.com
Best Articles of the Week: #HRTechConf Edition
Posted by blog.smashfly.com
Thursday, October 29, 2015 06:07
Pingback from blog.careerco.com
Reflections on the HR Technology Conference - CareerCo Today
Posted by blog.careerco.com
Saturday, November 07, 2015 00:55
Pingback from mhub.tv
Driving Adoption of Microsoft Office 365 – another Trojan horse? | mhub | The Enterprise Enablement Platformâ„¢
Posted by mhub.tv
Wednesday, November 11, 2015 10:01
Pingback from kathrynfrazieridt.wordpress.com
HR Technology for 2016: 10 Big Disruptions on the Horizon | kathrynfrazieridttools
Posted by kathrynfrazieridt.wordpress.com
Tuesday, December 15, 2015 18:29
Pingback from freemont-associates.com
Freemont AssociatesWhat will 2016 bring in HR Tech? - Freemont Associates
Posted by freemont-associates.com
Wednesday, December 16, 2015 17:31
Pingback from maketimevaluable.com
MAKE TIME VALUABLE
Posted by maketimevaluable.com
Tuesday, January 19, 2016 15:07
Pingback from hrtrendinstitute.com
HR Trends 2016: the list of lists | HR Trend Institute HR Trend Institute
Posted by hrtrendinstitute.com
Thursday, January 28, 2016 20:31
Pingback from 15five.com
7 Fascinating Employee Engagement Trends for 2016
Posted by 15five.com
Wednesday, February 03, 2016 03:41
Pingback from hrsoft.com
Automate HR Best Practices with Workforce Management Software
Posted by hrsoft.com
Friday, February 05, 2016 05:17
Pingback from roundpegg.staging.wpengine.com
Snakes to Detox â€“ 5 Experts Reveal How toÂ Build a Kick A$$ Culture in 2016 | RoundPegg
Posted by roundpegg.staging.wpengine.com
Friday, February 19, 2016 21:15
Pingback from meridianks.com
#ICYMI: 2016 is The Year of Enablement | Meridian Knowledge Solutions
Posted by meridianks.com
Tuesday, February 23, 2016 07:58
Pingback from roundpegg.com
Snakes to Detox â€“ 5 Experts Reveal How toÂ Build a Kick A$$ Culture in 2016 | RoundPegg
Posted by roundpegg.com
Sunday, February 28, 2016 10:28
Pingback from hr-mag.ru
30 Ð»ÑƒÑ‡ÑˆÐ¸Ñ… ÑÑ‚Ð°Ñ‚ÐµÐ¹ Ð¾ Ð¼Ð¸Ñ€Ð¾Ð²Ñ‹Ñ… Ñ‚Ñ€ÐµÐ½Ð´Ð°Ñ… Ñ€ÐµÐºÑ€ÑƒÑ‚Ð¸Ð½Ð³Ð° - hr-mag.ru
Posted by hr-mag.ru
Tuesday, March 22, 2016 01:12
Pingback from balanceatwork.com.au
7 Fascinating Employee Engagement Trends for 2016 | Balance at Work
Posted by balanceatwork.com.au
Wednesday, April 13, 2016 22:28
Pingback from youearnedit.com
Employee Engagement, Hackathons, and Slack | YouEarnedIt.com - Reward & Recognize Your Team
Posted by youearnedit.com
Friday, June 10, 2016 17:45
Pingback from theautumngroupllc.com
The Business Of Talent: 2016 Recruiting vs. HR Trends - Autumn Group
Posted by theautumngroupllc.com
Friday, July 15, 2016 14:01
Pingback from digitalistmag.com
6 Dated HR Technologies Your Company Should Replace
Posted by digitalistmag.com
Josh Bersin writes on the ever-changing landscape of business-driven learning, HR and talent management.
His favorite topics include strategic talent management, creating high-impact learning organizations,
and how organizations drive business change and competitive advantage through talent strategy and technology.
We would like your feedback on our website. Please send comments, questions or report problems to us at:» email@example.com