In 2016, the top 10 Core HR software vendors accounted for 53% of the HCM applications market segment which grew 3% to approach $10 billion in license, maintenance and subscription revenues.
As a whole, Core HR applications including talent management products represented 61% of the overall HCM applications market.
Last year SAP was No. 1 in Core HR with a 14% market share and $1.3 billion in HCM Core HR product revenues, following a 20% rise in license, maintenance and subscription revenues. Workday was No. 2 with 10% share, ADP was the third at 7% and Oracle was the fourth with 6% market share. Paycom and SumTotal were tied at the fifth place with 3% market share.
Exhibit 1 – 2016 Core HR Market Shares Split By Top 10 Core HR Vendors and Other, %
Through our forecast period, the Core HR applications market, which is comprised of nine subsegments, is expected to reach $11 billion by 2021, compared with $10 billion in 2016 expanding at a compound annual growth rate of 2%. For Top 10 vendors in each of the nine subsegments, please check their own index page by following their link below.
Exhibit 2 – Worldwide Core HR Applications Market Forecast 2016-2021 By Subsegment, $M, and Compound Annual Growth Rate, %
|Core HR Segments||2016||2021||CAGR, %|
Source: Apps Run The World, January 2018
Core HR Market Definitions and Forecast Assumptions
Human capital management includes such functions as eRecruiting (applicant tracking), Onboarding (employee profile), Performance Management (assessment, goal management, succession planning), Core HR (personnel administration, benefits, compensation management, payroll), Workforce Management (absence management, activity tracking, scheduling, time and attendance), and eLearning (learning management system). For complete definition, please see below or visit our Taxonomy page.
Drivers behind the growth of Core HR applications market include
- As sexual harassment becomes a focal point of social-media conversations, companies may have to step up their internal control measures by investing in new Big Data and social-media monitoring tools in order to respond to such complaints in real time.
- HR policies may have to be revamped in order to be better aligned with corporate social responsibilities, putting the interests of shareholders and public opinions ahead of any star performer.
- Succession planning becomes more important than ever to ensure smooth transitioning from one corporate reporting structure to the next.
- Companies, especially those that operate in multiple countries, are searching for a system of record to minimize attrition, groom talented employees, while addressing complicated compliance requirements.
- Digital transformation in response to new user demands, market forces.
- Restructuring of HR processes to accelerate for next decade.
- Heavily modified Core HR systems entail rising costs
- Employers are reevaluating performance management process by giving workers continuous feedback with consistent and transparent metrics
Inhibitors include the following trends that cut across multiple Core HR segments:
Rise of robotic process automation, artificial intelligence and machine learning poses challenges for HR executives as hiring and firing decisions may include unintended biases when screening and selecting job applicants or redundancies because of flawed metrics, algorithms and even job descriptions.
Potential changes to Affordable Care Act and other key legislations could undermine HCM’s near-term growth. Shifting regulatory and compliance demands prompt stopgap measures.
For eLearning vendors, expanding a content library is a challenge. The same applies to fending off the ubiquity of Youtube and Lynda from LinkedIn. The issue is whether users are better off with courseware or do-it-yourself microlearning development tools.
Eroding trust in the workplace, lack of employee engagement; Bring Your Own Device trend engenders Core HR system distrust as well.
The move toward continuous, ad-hoc and spontaneous feedback process will entail micro services that assimilate project management and team collaboration, requiring HR performance management apps vendors to combine personalized evaluation and unstructured communication. The challenge is to deliver tangible benefits for small work groups, while still using the same metrics to drive process improvement for the entire organization.
Top 10 Core HR Software Vendors
Here are the rankings of the top 10 Core HR in 2016, their market shares in 2016 and recent developments.
|Rank||Top 10 Core HR Software Vendors||2015 Core HR Revenues, $M||2016 Core HR Revenues, $M||2016 Core HR YoY Growth, %||2016 Core HR Market Share, %||Recent Developments|
|1||SAP||Subscribe||Subscribe||Subscribe||Subscribe||Number of SAP SuccessFactors Employee Central customers for Cloud Core HR applications exceeded 2,000 in 3Q17, while total HCM suite customers now number 6,300 and 48.3 million users.|
|2||Workday||Subscribe||Subscribe||Subscribe||Subscribe||Workday has become a HCM juggernaut with nearly 2,000 customers covering 26 million employees in scores of countries. The Workday Cloud Platform will allow other ISVs to deliver new solutions that take advantage of its growing installed base, HCM and ERP as well as analytics expertise and successful implementation methodologies.|
|3||ADP||Subscribe||Subscribe||Subscribe||Subscribe||ADP has upgraded more than 83% of its clients to strategic cloud platforms as it expanded through acquisition of Global Cash Card for digital payments including paycards.|
|4||Oracle||Subscribe||Subscribe||Subscribe||Subscribe||In addition to its recently revamped recruiting applications, Oracle HCM Cloud continues to add new features like Knowledge Management for HR Help Desk, while signing hundreds of new customers each quarter.|
|5||Paycom||Subscribe||Subscribe||Subscribe||Subscribe||Now with a quarterly run rate of over $100 million, Paycom is poised to expand across different HCM segments, banking on new offerings including the launch of 10 Learning Management courses.|
|6||SumTotal Systems, a Skillsoft Company||Subscribe||Subscribe||Subscribe||Subscribe||SumTotal raced to improve its user experience while delivering new offerings including an Onboarding solution that speeds time to performance and boosts collaboration for new hires and transitioning employees.|
|7||Ultimate Software||Subscribe||Subscribe||Subscribe||Subscribe||Customer count topped 4,000 with over 35 million employee records in the cloud. It projects 19% revenue growth in 2018 as its retention rate stays solid at 96%.|
|8||Paylocity||Subscribe||Subscribe||Subscribe||Subscribe||With uninterrupted double-digit growth, Paylocity is aiming to become a HCM suite provider with its recent release of Compensation Management and Survey modules to complement its Core HR and Payroll products.|
|9||DATEV||Subscribe||Subscribe||Subscribe||Subscribe||DateV attributed its 5% growth in its latest fiscal year to the prevalence of companies going digital with their business processes as well as increased compliance needs.|
|10||Benefitfocus||Subscribe||Subscribe||Subscribe||Subscribe||It ended 3Q17 with 903 large employer customers, up from 827 a year earlier. At the product level, its latest enhancements were designed to drive success before, during and after open enrollment.|
Source: Apps Run The World, January 2018
HCM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in HCM applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest HCM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
What follows is a sample of our latest findings, which are being updated continuously. Each year our research team identifies tens of thousands of these HCM customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
|Vendor||Customer Win||Industry||No. of employees||Revenue, $M||Old Product||New Product||Wins in|
|ADP||AllOver Media||Media||200||25||Legacy Applications||ADP Vantage HCM||2015|
|ADP||Boudin||Food Products||400||50||UltiPro||ADP Vantage HCM||2015|
|ADP||Columbia Distributing||Consumer Staples||2600||700||Legacy Applications||ADP Vantage HCM||2015|
|ADP||Didlake||Nonprofit Organizations||1200||100||Legacy Applications||ADP Vantage HCM||2016|
|ADP||E. & J. Gallo Winery||Professional Services||6000||4100||Oracle PeopleSoft HCM||ADP Vantage HCM||2016|
|ADP||Edgewell Personal Care||Healthcare||6000||1631||SAP HCM (HR)||ADP GlobalView HCM||2015|
|ADP||Energizer||Gas Utilities||5100||1610||SAP HCM (HR)||ADP GlobalView HCM||2015|
|ADP||Harlem United||Pharmaceuticals||350||50||UltiPro||ADP Workforce Now||2015|
|ADP||Kratos Defense and Security Solutions||Diversified Consumer Services||2900||653||Deltek CostPoint||ADP Vantage HCM||2015|
|ADP||Novotus||Professional Services||100||8||UltiPro||ADP Vantage HCM||2016|
|ADP||Restaurant Technologies||Hotels, Restaurants & Leisure||750||400||UltiPro||ADP Vantage HCM||2014|
|ADP||Safran||Aerospace& Defense||70000||18000||UltiPro||ADP Vantage HCM||2014|
|ADP||Wonderful Pistachios & Almonds||Consumer Staples||7300||2500||UltiPro||ADP Vantage HCM||2015|
|Cornerstone OnDemand||American Red Cross||Commercial Services & Supplies||30000||2974||Saba Learning Work||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||FEMSA||Food Products||246150||332250||Legacy Applications||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||Fletcher Building||Building Materials||18800||8410||Totara LMS||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||Frontier Communications||Diversified Telecommunication Services||20400||5560||Legacy Applications||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||Hitachi||Household Durables||336670||94770||Saba Learning Work||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||Maersk Group||Air Freight & Logistics||89000||47569||Legacy Applications||Cornerstone OnDemand LMS||2016|
|Cornerstone OnDemand||Penn State College of Medicine||Pharmaceuticals||9000||2700||Moodlerooms||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||SEGA||Media||300||50||Legacy Applications||Cornerstone OnDemand LMS||2015|
|Cornerstone OnDemand||Team Rubicon||Aerospace & Defense||60||5||Legacy Applications||Cornerstone OnDemand LMS||2016|
|IBM||ATB Financial||Diversified Financial Services||5300||1500||Legacy Applications||IBM Kenexa Talent Acquisition Suite||2016|
|IBM||Whirlpool||Specialty Retail||97000||20891||Legacy Applications||IBM Kenexa Talent Acquisition Suite||2016|
|Kronos||Benchmark Senior Living||Communications Equipment||2370||280||UltiPro||Kronos Workforce Central||2016|
|Kronos||HHS – Hospital Housekeeping Systems||Health Care Providers & Services||11000||350||ADP Workforce Now||Kronos Workforce Central||2016|
|Kronos||RWJUH||Education Services||10100||1500||Infor Global HR||Kronos Workforce Central||2016|
|Meta4||Thomas Cook||Hotels, Restaurants & Leisure||31000||9500||Legacy Applications||Meta4 PeopleNet||2014|
|MHR (formerly MidlandHR)||Royal College of Music||Diversified Consumer Services||380||50||Legacy Applications||Strategic HR||2016|
|Oracle||Ansell||Industrial Conglomerates||1500||1645||Legacy Applications||Oracle HCM Cloud||2015|
|Oracle||Arcadis||Professional Services||27000||3400||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||Blackboard||Internet Software & Services||3000||700||Oracle PeopleSoft HCM||Oracle HCM Cloud||2016|
|Oracle||Blackmores||Health Care Providers & Services||800||471||Oracle E-Business Suite||Oracle HCM Cloud||2016|
|Oracle||BrightSource Energy||Renewable Electricity||450||13500||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||CEMEX S.A.B. de C.V.||Building Materials||44000||13070||Workday Human Capital Management||Oracle HCM Cloud||2015|
|Oracle||CenterPoint Energy||Gas Utilities||7505||7386||SAP HCM (HR)||Oracle HCM Cloud||2016|
|Oracle||CIMIC Group Limited||Construction & Engineering||23000||16218||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||Cypress Semiconductor||Technology Hardware, Storage & Peripherals||6279||1820||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Despegar.com||Hotels, Restaurants & Leisure||3500||400||Oracle PeopleSoft HCM||Oracle HCM Cloud||2016|
|Oracle||Engie||Gas Utilities||152900||83350||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Fannie Mae||Diversified Financial Services||7300||22230||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||Genesys||Internet Software & Services||3300||850||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||JTsocial||Diversified Telecommunication Services||600||281||Sage 1000||Oracle HCM Cloud||2016|
|Oracle||Kentucky State University||Education Services||1600||53||Banner by Ellucian||Oracle HCM Cloud||2016|
|Oracle||L Brands, Inc.||Textiles, Apparel & Luxury Goods||22900||12154||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Loud Technologies||Household Durables||533||208||ADP Workforce Now||Oracle HCM Cloud||2016|
|Oracle||Molina Healthcare||Health Care Providers & Services||21000||14178||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||MoneyGram International||Diversified Financial Services||2820||1434||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||Nationwide Insurance||Diversified Financial Services||35000||25914||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Omnicare||Health Care Providers & Services||13000||1733||ADP Workforce Now||Oracle HCM Cloud||2015|
|Oracle||Overhead Door Corporation||Building Materials||1000||100.000002||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Pella||Building Materials||6000||2300||Legacy Applications||Oracle HCM Cloud||2016|
|Oracle||Polycab||Electrical Equipment||5500||1000||Legacy Applications||Oracle HCM Cloud||2016|
|Oracle||Restoration Hardware||Specialty Retail||3800||2109||ADP Workforce Now||Oracle HCM Cloud||2015|
|Oracle||Rutgers University||Education Services||9694||3600||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Samuel||Metals & Mining||5300||3670||Legacy Applications||Oracle HCM Cloud||2016|
|Oracle||Schroders||Capital Markets||3700||3004||Oracle PeopleSoft HCM||Oracle HCM Cloud||2016|
|Oracle||SGS||IT Services||85903||5712||Oracle PeopleSoft HCM||Oracle HCM Cloud||2016|
|Oracle||Southwestern Energy||Gas Utilities||2597||3133||Workday Human Capital Management||Oracle HCM Cloud||2016|
|Oracle||U.S. Navy||Aerospace & Defense||200000||26276||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|Oracle||Vanderbilt University||Education Services||24176||4067||Oracle PeopleSoft HCM||Oracle HCM Cloud||2016|
|Oracle||Westpac Banking||Banks||32021||27858||Oracle PeopleSoft HCM||Oracle HCM Cloud||2015|
|SAP||Allergan Plc||Pharmaceuticals||31200||15071||SAP HCM (HR)||SAP SuccessFactors Employee Central||2016|
|SAP||Allstate||Insurance||40200||35700||Legacy Applications||SAP SuccessFactors Employee Central||2014|
|SAP||Arizona Chemical||Chemicals||1000||1500||SAP HCM (HR)||SAP SuccessFactors Employee Central||2015|
|SAP||British American Tobacco||Tobacco||57000||19170||Oracle PeopleSoft HCM||SAP SuccessFactors Employee Central||2015|
|SAP||Cargotec||Transportation||10837||3729||Legacy Applications||SAP SuccessFactors Employee Central||2016|
|SAP||Coca-Cola||Food Products||2900||1000||ADP GlobalView HCM||SAP SuccessFactors Employee Central||2015|
|SAP||Edgewell Personal Care||Health Care Providers & Services||6000||1631||SAP HCM (HR)||SAP SuccessFactors Employee Central||2015|
|SAP||HEINEKEN||Food Products||81000||19260||SAP HCM (HR)||SAP SuccessFactors Employee Central||2015|
|SAP||Mars, Incorporated||Food Products||75000||35000||Legacy Applications||SAP SuccessFactors Employee Central||2016|
|SAP||Mobile Mini||Containers & Packaging||1982||530||Legacy Applications||SAP SuccessFactors Employee Central||2015|
|SAP||National Bank||Diversified Financial Services||20125||5464||Oracle PeopleSoft HCM||SAP SuccessFactors Employee Central||2014|
|SAP||National Football League (NFL)||Leisure Products||1000||12000||Legacy Applications||SAP SuccessFactors Employee Central||2016|
|SAP||Sabre||Hotels, Restaurants & Leisure||9100||2960||SAP HCM (HR)||SAP SuccessFactors Employee Central||2016|
|SAP||Sitel||IT Services||58000||1500||Legacy Applications||SAP SuccessFactors Employee Central||2015|
|SAP||Smurfit Kappa||Containers & Packaging||41000||9150||SAP HCM (HR)||SAP SuccessFactors Employee Central||2014|
|SAP||Spotless||Professional Services||47000||2873||Legacy Applications||SAP SuccessFactors Employee Central||2014|
|SAP||SPX||Construction & Engineering||6000||2000||Oracle PeopleSoft HCM||SAP SuccessFactors Employee Central||2015|
|SAP||TASNEE||Industrial Conglomerates||1000||4850||SAP HCM (HR)||SAP SuccessFactors Employee Central||2016|
|SAP||The Timken Company||Industrial Conglomerates||14000||2872||Legacy Applications||SAP SuccessFactors Employee Central||2012|
|SAP||Thomas Cook||Hotels, Restaurants & Leisure||31000||9500||SAP HCM (HR)||SAP SuccessFactors Employee Central||2014|
|SAP||thyssenkrupp||Construction & Engineering||155000||42788||SAP HCM (HR)||SAP SuccessFactors Employee Central||2015|
|SAP||ZS Associates||IT Services||4000||850||Legacy Applications||SAP SuccessFactors Employee Central||2016|
|SumTotal Systems, a Skillsoft Company||3M||Biotechnology||90000||30274||Legacy Applications||SumTotal Learn||2016|
|SumTotal Systems, a Skillsoft Company||Edward Jones||Diversified Financial Services||41200||6300||Legacy Applications||SumTotal Learn||2015|
|SumTotal Systems, a Skillsoft Company||Edwards Lifesciences||Pharmaceuticals||9800||2600||Saba Learning Work||SumTotal Learn||2016|
|SumTotal Systems, a Skillsoft Company||Experian||IT Services||17000||4810||Legacy Applications||SumTotal Learn||2015|
|SumTotal Systems, a Skillsoft Company||Patterson Companies||Health Care Providers & Services||7000||5390||Legacy Applications||SumTotal Learn||2015|
|SumTotal Systems, a Skillsoft Company||RELX Group||Commercial Services & Supplies||30000||5971||Legacy Applications||SumTotal Learn||2015|
|SumTotal Systems, a Skillsoft Company||YapStone||Diversified Financial Services||310||135||Legacy Applications||SumTotal Learn||2015|
|Ultimate Software||Astoria Bank||Diversified Financial Services||1501||528||ADP Workforce Now||UltiPro||2014|
|Ultimate Software||Carlex||Automotive||700||200||ADP Workforce Now||UltiPro||2015|
|Ultimate Software||Conexus Credit Union||Diversified Financial Services||900||170||CoreHR||UltiPro||2016|
|Ultimate Software||DeVry Education Group||Education Services||10136||1850||Replicon Time& Attendance||UltiPro||2015|
|Ultimate Software||District Photo||Household Durables||1200||160||Paychex WORX||UltiPro||2016|
|Ultimate Software||Horizon Lines||Transportation||2000||800||Dayforce HCM||UltiPro||2015|
|Ultimate Software||Islands Restaurants||Hotels, Restaurants & Leisure||4100||900||Dayforce HCM||UltiPro||2016|
|Ultimate Software||Mi-Jack Products||Industrial Conglomerates||500||300||Dayforce HCM||UltiPro||2016|
|Ultimate Software||Milk Specialties Company||Food Products||700||550||ADP Workforce Now||UltiPro||2015|
|Ultimate Software||Multisorb Technologies||Containers & Packaging||400||90||ADP Workforce Now||UltiPro||2015|
|Ultimate Software||Pharmaca||Health Care Providers & Services||500||20||Dayforce HCM||UltiPro||2015|
|Ultimate Software||Screen Actors Guild-Producers Pension and Health Plans||Insurance||180||100||ADP Workforce Now||UltiPro||2016|
|Ultimate Software||Taubman Centers||Real Estate||615||580||Legacy Applications||UltiPro||2015|
|Ultimate Software||Virginia Tire & Auto||Automotive||450||100||ADP Workforce Now||UltiPro||2015|
|Ultimate Software||Warren Equipment Company||Industrial Conglomerates||1700||500||ADP Workforce Now||UltiPro||2015|
|Workday||3M||Biotechnology||90000||30274||Oracle PeopleSoft HCM||Workday Human Capital Management||2016|
|Workday||Acxiom||Internet Software & Services||4320||1020||Oracle PeopleSoft HCM||Workday Human Capital Management||2016|
|Workday||Airbus||Aerospace & Defense||136600||64500||Legacy Applications||Workday Human Capital Management||2016|
|Workday||Best Western Hotels & Resorts||Hotels, Restaurants & Leisure||5000||7000||Legacy Applications||Workday Human Capital Management||2016|
|Workday||California College of the Arts Pre-College Program||Education Services||1500||300||ADP Enterprise HR||Workday Human Capital Management||2015|
|Workday||CareerBuilder||Professional Services||3000||556||Legacy Applications||Workday Learning||2016|
|Workday||Cerner||Health Care Providers & Services||22000||3402||Oracle PeopleSoft HCM||Workday Human Capital Management||2016|
|Workday||Commerce Bank||Diversified Financial Services||4770||227||Legacy Applications||Workday Learning||2016|
|Workday||ConAgra Foods||Food Products||32000||17700||Oracle PeopleSoft HCM||Workday Human Capital Management||2016|
|Workday||Hootsuite||Internet Software & Services||1200||150||Legacy Applications||Workday Learning||2016|
|Workday||J.B. Hunt Transport Services||Air Freight & Logistics||19324||10000||Oracle PeopleSoft HCM||Workday Human Capital Management||2016|
|Workday||Kohls||Textiles, Apparel & Luxury Goods||35000||20000||Legacy Applications||Workday Human Capital Management||2016|
|Workday||L.L.Bean||Textiles, Apparel & Luxury Goods||5000||1610||Legacy Applications||Workday Human Capital Management||2016|
|Workday||McKee Foods||Food Products||5800||1400||Legacy Applications||Workday Learning||2016|
|Workday||Memorial Hermann Health System||Health Care Providers & Services||24000||4000||Legacy Applications||Workday Human Capital Management||2016|
|Workday||Nationstar Mortgage||Banks||6740||1022||ADP GlobalView HCM||Workday Human Capital Management||2016|
|Workday||Perkins Coie||Specialized Consumer Services||2100||1400||UltiPro||Workday Human Capital Management||2015|
|Workday||Point Loma Nazarene University||Education Services||1250||300||Legacy Applications||Workday Human Capital Management||2016|
|Workday||Unum||Insurance||9400||3521||Legacy Applications||Workday Learning||2016|
Source: Apps Run The World, January 2018
The HCM Top 500 report series covers more than 3,000 pages of content, make sure you don’t miss any of the 500+ profiles by becoming a subscriber. Or you can catch the highlights with the following links:
- Top 10 Core HR Vendors, Market Forecast 2016-2021, and Customer Wins
- Top 10 Talent Acquisition Vendors, Market Forecast 2016-2021, and Customer Wins
- Top 10 Workforce Management Vendors, Market Forecast 2016-2021, and Customer Wins
- Top 10 HCM Software Vendors and Market Forecast 2016-2021
- HCM Top 500 Market Forecast As Political Uncertainty Meets HR Transformation
- HCM Top 500 Leaderboard Showcases Biggest HR Apps Vendors in 22 Markets
Similar to any of the hundreds of reports that we have published since 2010, HCM Top 500 is a labor of love. Since 2013, our team of researchers have been conducting rigorous research on thousands of HCM vendors, surveying them quarterly, reviewing their products at even shorter intervals because of the compressed Cloud release cycle, and discussing HR vision with their customers to better understand user needs as well as different paths to upgrade and replace their existing systems.
Each year we also attend many industry-wide and vendor-specific user conferences – HR Tech, Dreamforce, SAPPHIRENOW, Oracle Open World, just to name a few, to gauge what customers are looking for.
Throughout this process comes a rich database of more than 2,000 HCM vendors as well as over 50,000 HCM customers that have been touched one form or another through regular surveys, phone and in-person interviews, email exchanges, and social media interactions, etc.
On a proactively basis, we contact the vendors directly to tabulate their latest quarterly and annual revenues by HCM segment, vertical market, revenue type, region, country and customer size.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates in each of the 22 segments and 21 verticals, in addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our quantitative research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of HCM, enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall HCM and IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the HCM marketplace for years to come.
HCM Market Taxonomy
Definition of Human Capital Management (HCM) Applications
Core HR and Performance Management
|Core HR and Performance Management||Description|
|Personnel & Organization Management||Core human resource management system, personnel records, HR master file, accruals, organizational development, org chart visualization|
|Payroll||Payroll processing, tax filing, language support, country-level updates, payslip calculations, automatic deductions and other government requirements for proper disbursement of employee compensation.|
|Benefits Administration||Benefits and health administration. Plan and design benefits lifecycle, billing and payment. Carrier solutions are also included for integration purposes.|
|Pension Administration||Pension and retirement fund(401K) administration as well as software that helps manage profit sharing plan, defined benefit plan, or cash balance plan.|
|Compliance||Compliance, regulatory updates and reporting including such laws as Affordable Care Act, Overtime Regulations, Fair Labor Standards Act|
|Performance & Goal Management||HR performance management applications are designed to automate the aggregation and delivery of information pertinent to the linking of job roles and the mission and goals of the organization. More specifically, the system allows users to automate the performance review process by using mechanisms such as training and key performance indicators to continuously track and monitor the progress of an individual employee, work team, and division. Some of the key features include: Assessment of individual career objectives and organizational skills gaps that impede performance and job advancement. Continuous reviews and establishing milestones. 360-degree evaluation and real-time feedback. Performance appraisal automation. Goal setting and tracking. Employee surveys. Alignment of human assets to corporate objectives. Fast tracks for top performers.|
|Learning & Development||Learning management systems refer to applications that automate the administration, tracking, and reporting of training events. Other tools may include courseware and other delivery, management, tracking, or integrated solutions whose focus is on the learning environment, including learning content management systems. Career development tools include apps for coaching, mentoring, employee development planning, and diagnosing of development needs.|
|Succession & Leadership Planning||Identify and address current and potential talent gaps to create succession management reporting. Develop and maintain a continuous supply of internal talent to fill critical job roles. Improve employee engagement through digital tools to advance career path development opportunities.|
|Compensation Management||Compensation management applications are designed to automate the process of providing cash, noncash, variable and nonvariable compensation to employees through advanced modeling, reporting, and built-in interfacing to payroll processing systems. Other key features include seamlessly manage compensation budgets and allocation in a single, shared tool. Streamline pay recommendation workflows and approvals. Support multiple pay and incentive practices. Ensure budget compliance and adherence to compensation guidelines. Quota and territory management. Calculation and distribution of commissions, spiffs, royalties, incentives to employees, and channel and business partners. Compensation analysis using internal and external data for retention risk analysis. Linking salary, commission and incentives — cash and noncash — to business objectives. Payroll and payment engine interfaces. Account payables integration.|
|Applicant Tracking||Applicant tracking software automates such functions as management of resumes, applicant information, scoring, workflow, matching, search, interview scheduling, job descriptions, EEOC reporting, job postings and notifications|
|Recruiting||Recruiting applications are designed to automate the recruitment process of salaried and hourly employees through screening and skills assessment, as well as automated selection processes to improve hiring pipeline by identifying talent inside or outside the organization. Other key features include: Manage skills inventories. Create and manage job requisitions. Coordinate team collaboration within hiring processes. Video Interviewing, team building and digital coaching.|
|Marketing||Applications designed to attract and engage candidates and employees. Other tasks automate functions such as candidate relationship management apps, career site technology, social recruiting, employee referrals, branding, video engagement, campus recruiting and internal hiring|
|Contingent Labor Management||Processing of hiring of contingent labor, search, skills matching, assessment, interview scheduling, negotiation of rates, approvals, project milestone payments, project completion tracking, performance ratings|
|Sourcing||Facilitate resource planning for staffing firms as well as vendor managed system, allowing for front office integration for employment agencies as well as talent acquisition apps designed for staffing firms.|
|Onboarding||Applications designed to deploy workers to appropriate jobs, projects, or teams for accelerated on-boarding.|
|Absence and Leave Management||Absence management applications offer automated features to support employee leave management, employer authorized leave, Short-Term-Disability/Workers’ Comp coordination, federal and state compliance, customized leave correspondence, medical certification processing, insurance premium payment tracking as well as employee self-service capabilities. Leave Management supports compliance activities related to government regulations such as the Family and Medical Leave Act in the United States and other local leave laws in different countries.|
|Workforce analytics||Workforce analytics are used to analyze compensation, benefits, and other employee variables. These applications can also be used to analyze and optimize labor allocation for particular projects.|
|Fatigue Management||Fatigue Management apps help automate key facets of fatigue risk mitigation, enforcing employee work-hour limits and aligning with fitness for duty best practices. Similar apps may act as electronic work diaries for real-time reporting and compliance with transportation laws.|
|Hardware (Time Clock)||Time capture is the hardware platform that provides authentication features for clock-in and clock-out times, meal and rest breaks, as well as timesheet and payroll reporting and compliance.|
|Workforce Scheduling||Products are designed to Increase forecasting accuracy by factoring in a variety of methods and historical patterns. Create optimal schedules to meet customer demands, while reducing costs and maximizing resources|
|Task Management||Task Management offers labor management capabilities such as task-based and project-based activity tracking as well as measurement and reporting functions against performance standards like engineered labor standards, team standards and reflective standards.|
|Time & Attendance||Time and Attendance applications are designed to automate employee time tracking in different locations, help reduce overtime expenses, improve payroll accuracy, eliminate pay errors and adjustments, along with the need to simplify and optimize administrative tasks and complex rate calculations by making available accurate and current labor data and full audit trail of payroll data.|