Global Human Capital Management (HCM) Market - 2022-2029

Market Overview

The global human capital management (HCM) market size was worth US$ XX million in 2021 and is estimated to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of XX% within the forecast period (2022-2029).

Human capital management (HCM) involves practices that transform the traditional administrative functions of human resources (HR) departments-recruiting, payroll, training, compensation and performance management-into great opportunities to drive engagement, productivity and business value.

HCM views the workforce as a basic company asset whose value can be maximized via smart investment and management, like any other asset. HCM can refer to a company strategy and a collection of current IT applications and other technologies to put that strategy into action. Though the phrases linked HR, HRMS and HRIS are sometimes used interchangeably; there are some fundamental differences. In addition, several major industrial companies, like Cornerstone OnDemand, Kronos, SAP and IBM Corporation, provide process automation solutions for various user types, including SMEs and large organizations.

Market Dynamics

Growing focus on the adoption of effective workforce management to encourage development. The growing need to streamline HR operations and the increasing adoption of advanced HR technologies is driving the market share for the HCM market.

Growing focus on the adoption of effective workforce management to encourage development.

Growing awareness of HCM among originations due to its effectiveness and efficiency in managing a large workforce and client base is expected to boost market sales over the projected period. The market's rapid rise will be aided by the increased adoption of intelligent workforce solutions, particularly in a pandemic.

For instance, Infor, a multinational enterprise software company based in New York City, announced the launch of a workforce management (WFM) solution integrated with intelligent scheduling in China in May 2020. The powerful tool will assist businesses in providing effective staff scheduling and labor utilization. Furthermore, human resources workflow works well when the company automates documentation submissions, such as leave of absence, timesheets, internal surveys and performance reviews and delivers superior support to the employees by providing a centralized portal for submitting, approving and tracking HR requests.

The HCM allows the key players to effectively manage the workforce and encourage the development cost-effectively coupled with reduced risk, frustration, re-work and duplicative work and conflicts of interest. The HCM increases decision-making power and internal customer service with a better working environment.

The growing need to streamline HR operations and the growing adoption of advanced HR technologies is driving the market share for the HCM market.

The HR operation used to be very hectic and required a lot of manual workflows to carry out the operations. Earlier, the employee percentage used to less and manual handling of data was easy. However, the recent decade has shown a lot of changes in managing the HR operation and companies are adopting various advanced technology to make the system streamlined and easy to handle.

Thus the advanced solution to address the organization's modern HR needs is HCM Cloud Applications. Its superior business intelligence and global, social and mobile functionality assist the customer in optimizing the HR process. It is adaptable-designed to function in tandem with the organization's demands and even adapt to changes as it expands. It's a full-fledged HR system that includes workforce management, rewards, workforce optimization and workforce analytics.

Furthermore, HR professionals can now provide a more engaging and tailored employee experience at scale due to new digital technology. Emerging technologies like data automation, predictive analytics and artificial intelligence (AI) have added innovations for simultaneously understanding, managing, incentivizing and engaging the workforce.

HR directors now have a new set of tools to help them maximize their staff's value, ranging from intelligent, social-driven recruiting to individualized retention strategies to highly optimized compensation. Thus growing awareness and increasing adoption of advanced technologies for HR management create lucrative opportunities for the HCM market to increase in the forecast period.

The unprecedented spike in global unemployment has severely hampered the market growth of HCM.

In the wake of the coronavirus, the worldwide unemployment rate has reached an all-time high, limiting the market's potential. According to ADP, Inc., the private sector in U.S. lost 20 million jobs in April 2020. Similarly, the Congressional Budget Office in U.S. predicts that 15% of individuals will be unemployed by the third quarter of 2020. The financial damage caused by the coronavirus has led to the downsizing of many businesses, limiting the expansion of the human capital management sector. On the other hand, new policies and regulations will generate chances for the market by containing the crisis and improving employment rates.

COVID-19 Impact Analysis

The COVID-19 pandemic caused a severe halt in global economic activity, resulting in furloughs and layoffs (World Economic Forum, 2020), raising unemployment rates in many countries. 'Total unemployment in the G7 ranges from 30 million in U.S. to 1.76 million in Japan. According to Gourinchas, it has created a situation in which 50% or more of the workforce may be unable to work for a short length of time.

Thus, the rising percentage of unemployment has built several challenges for the HCM market during the pandemic phase. Countries are still struggling to revive their economy to rebuild the market. However, companies have begun reopening amid this continuous pandemic, under extraordinary regulations and a new functioning that no one can anticipate when it will finish, in an attempt to recoup from this economic blow. Thus reopening of companies is expected to improve the employment percentage in various developing regions and hence expected to revive the HCM market share in the forecast period.

Segment Analysis

The global human capital management (HCM) market can be segmented on deployment, component, organization size, end-user and region.

Cloud adoption is driven by cloud-based apps' feature richness, simplicity of use and data capacity across all corporate application solutions. CRM and HCM are the first to go to the cloud.

The global human capital management (HCM) market, based on deployment, is segmented into on-premise and cloud. The cloud is the largest market shareholder out of the mentioned deployment types. Cloud adoption is driven by cloud-based apps' feature richness, simplicity of use and data capacity across all corporate application solutions. CRM and HCM are the first to go to the cloud. Enterprises can create effective employee engagement tools by leveraging social media integration and other APIs for learning, coaching and recruiting tools that disrupt the market with cloud-based HCM solutions.

According to Oracle's cloud estimates for 2018, 50% of production workloads in regulated industries will migrate to the cloud by 2020. HCM suppliers offer cloud-based solutions while offering on-premise solutions, but with less attention to innovation than cloud-based solutions, anticipating the surge in cloud usage across companies.

For instance, In May 2020, Workday announced a collaboration with Microsoft. The agreement aims to enhance cloud-based enterprise planning software by running workday adaptive planning on the Microsoft Azure cloud.

Geographical Analysis

The growing adoption of advanced technology and the presence of key players in the human capital management (HCM) market is boosting the market share of the North American region

North America has held a dominant position in the HCM market recently. The region's expansion can be attributed to continuous technical improvement. More globalization and improved work culture will influence North America's healthy growth. Furthermore, the presence of many HCM vendors such as Workday, Oracle, ADP, Epicor Software, Zenefits, Paylocity, Gusto, Bitrix, Benefitfocus and others, coupled with the increasing adoption cloud-native technologies, is another factor triggering the market share for the region.

Furthermore, the market in Asia-Pacific is likely to be driven by enterprises' increasing embrace of industry 4.0, data analytics and cloud computing. Because of rising employment, Europe is likely to grow significantly. During the projected period, the market in Europe is likely to benefit from the emergence of startups and businesses.

Competitive Landscape

The human capital management (HCM) market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are Ultimate Software, Ceridian, SumTotal, EmployWise, Workday, Oracle, ADP, SAP, Microsoft, IBM, PeopleStrategy, Cornerstone, Meta4, Ramco Systems, Bamboo and others.

The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the global market growth of human capital management (HCM).

For instance, In July 2019, Ultimate Software launched employee file management to allow HR professionals to quickly share documents with third parties regardless of their location.

Oracle

Overview: Oracle, headquartered in Austin, Texas, is an American multinational computer technology firm. The company's headquarters were previously located in Redwood Shores, California, until December 2020, when it relocated to Texas. Oracle is best recognized for its Java-based software and services. Oracle sells its cloud-engineering services and systems and database management solutions through its four main business segments: cloud and license, hardware and services.

Product Portfolio:

Oracle Human Capital Management (HCM): Oracle Fusion Cloud Human Capital Management is a comprehensive solution that connects every human resource process from hiring through retirement. Oracle HCM ensures a uniform user experience across devices, provides a single source of truth for HR data to aid decision-making and equips you with market-leading innovation to meet business needs now and in the future.

Key Development

In October 2018, Oracle introduced AI capabilities in HCM, allowing the HR-trained bot to swiftly and simply answer basic HR questions.

Why Purchase the Report?

• Visualize the human capital management (HCM) market segmentation by deployment, component, organization size, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the human capital management (HCM) market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of human capital management (HCM) market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global human capital management (HCM) market report would provide approximately 69 market data tables, 63 figures and 216 pages.

Target Audience 2022

• Service Providers/ Buyers
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