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The Future of HR Applications, Part 1
Following the TechRadar report by Forrester Research I have made a summary about the future of Human Resource Management Applications. The expectations which must still be met but the trends are an interesting basis for discussion for companies to decide on future talent management or recruitment strategy. It is mainly interesting to look for those applications that provide the most 'value-add' to companies: 'Performance Management', 'Payroll' and 'Time and Attendance ". In the following series of blog posts I will do this from a talent management or recruitment perspective.
HRM applications range from essential tools for hiring staff, paying staff and administration of employment programs to strategic development programs. More than ever before companies see a dynamic and geographically distributed labor market creating a need for applications that improve efficiency and pro-activity in the areas of HRM support. HRM applications have been developed for years, but right now most systems have reached the stage of maturity which will lead to increased automation in the HR field. Existing systems will develop into more SaaS models (Software as a Service) and 'On The Cloud Computing' will lead to new innovations.
The following applications are briefly discussed in the full report mentioned above:
- Absence Management
- Benefits
- Compensation Management
- HR analytics
- HRMS
- Incentive Compensation Management
- Job boards
- Learning Management
- Mentoring
- Onboarding
- Organization charting
- Payroll
- Performance Management
- Recruiting
- Scheduling
- Social recruiting / networking
- Succession planning
- Time and attendance
- Virtual classrooms
The report looks at the product life cycle of each of the products and to what extent innovation or development can be expected in each of the stages: creation, survival, growth, maturity and decline.
In general it can be said that there is a clear basis in an application in which a number of key solutions and outsourced services are added. The blueprint that supports the foundation for those applications for the most critical HR processes include:
- Managing personnel expenses
- Development of efficient business processes
- Business Value-add to 'human capital'?
The future of HRM
Within the HR world, the following interesting trends are expected, where HR applications are becoming a mandatory requirement.- Adoption of SaaS (Software as a Service) is the definitive choice of large and small businesses.
- A changing labor market forces change in the way people work and where people work.
- Retention is the guiding factor for new opportunities and internal development.
- Social media will dramatically change HR processes.
- HR Outsourcing Service suppliers will become more active as technology providers.
Renewed focus on talent leads to further growth of HR apps
In shaping the future of HRM technology research by Forrester found that:- Talent Management Solutions have the greatest growth potential. Think performance, succession planning, onboarding and virtual classroom.
- In the core HR functions is the highest level of success. This relates to the mission-critical HR functions such as data administration, payroll and time & attendance.
- Recruitment technologies are regenerating. Job boards are popular but have reached the last phase of the life cycle as social networks have re-defined the market. They will have to specialize more to survive. Therefore there is still one last breath of about 10 years before they completely disappear from the Web. Applicant Tracking Systems have reached a stage of maturity but are still not in the 'decline' phase. It will still take about 3 years before the end of the product life cycle will be reached. Integrating with Social Recruiting can make a big difference here.?
Source:Tech Radar For Business Professionals: HRM Apps, Q1 2010 (Forrester Research)Recruitment Value-add
Specifically looking at recruitment and talent management products that can build the most value-add to the various business processes we see that:- Social Recruiting (and Social Networking) is still in the creation phase and has a moderate "value add" but does provide an innovative and trendy look.
- Recruitment has now grown into a mature product and has an average value-add in the critical processes.
- Onboarding has a moderate value added, but a strong growth continues.
- Performance Management & Goal Management is strongly represented in the growth phase and will realize the most value add.
Conclusion
So far we can finally conclude that HRM has become a serious player in the technology field. Many applications have grown to adulthood and for most companies it is now time for a wider roll out to other fields within HRM Applications. Personally I think that especially in the Netherlands and Europe we have much to gain in growth and many companies still need to start automating their personnel processes. In this regard, the U.S. is indeed ahead on integrating such systems into the workflow.In Part 2 of this article I will elaborate more on the individual situation of the latest HR products listed above.
Eelco Scheltinga
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