It is expected that the worldwide HCM Applications Market will reach $18.7 billion by 2021, compared with $16.4 billion in 2016 at a compound annual growth rate of 2.6%. In the recent years, SAP has lead the market in HCM product revenues, riding on a 19.8% jump in license, maintenance and subscription revenues, followed by Workday, ADP, Oracle, and LinkedIn - now recently part of Microsoft.
HCM Feature Functions in handling all areas with HR processes
Many Human capital management software solutions include various functions in the handling and management of day-to-day human capital processes in assisting HR with talent shortages, demographic shifts, and contingent labor surges as they reshape the global workforce. Now more than ever companies of all sizes are revamping their HR systems to better acquire, retain and source a new generation of employees. HCM system function features include:
- Recruiting – the tracking of applicants
- Onboarding – creating of employee profiles
- Performance Management – annual assessments, employee goal management, and employee succession planning
- Core HR - personnel administration, medical and 401(k) benefits, compensation management, and payroll
- Workforce Management – Attendance management, activity tracking, meeting scheduling, employee time clock
- eLearning – employee learning management system
Customers are investing in new and improved ways of managing their human capital.
Customers are now, more than ever before investing in HCM applications based on their new features and capabilities and in replacing or adding to their current relic systems to streamline processes and improving the overall health of an organization.
Artificial Intelligence in Human Capital Management
Artificial intelligence is one of the greatest drivers in future innovation in the coming decade. AI is showing up in self-directed vehicles, voice-controlled digital assistants as well as mobile and other devices with fingerprint and facial recognition. AI’s power to support human knowledge and resourcefulness in changing our perception of business challenges, when we look at how it can be applied to processes throughout an entire organization.
Artificial Intelligence is providing more robust solutions in simplifying things to ensure the correct information is available and received at the right time. In any business, HR as well as other departments within an organization, are handling many repetitious jobs that are performed by employees across an entire organization. Artificial Intelligence has created waves in the field of HR to perform different tasks and functions, but it is no substitute when it comes to human interface in HR. These machines are developed to help HR professionals in forming decisions and in predicting the next steps of the process.
From recruiters working candidate engagement and screenings, onboarding, training and relationship management, AI analytics share an employee’s performance, records tracking and an abundance of related information. AI is capable to drive an entire business towards a new direction with meaningful analytics that play key roles in keeping employees engaged. AI directly impacts and improves organizational efficiencies and productivity.
AI patterns in handling mass amounts of data.
Machine learning is a component of AI. It analyzes and identifies patterns within large amounts of data by restating the data to identify associations between data and decision results received from that data. The system will obtain a richer understanding of why decisions within a business are made, then request the statistical analysis to develop rules around those decisions.