Here’s a good write up on the status of the HR Software Market from Lauren Carlson, CRM Market Analyst, Software Advice
Software Advice Releases 2011 HR Market Trends Report
Software Advice, an online resource for HR software buyers, recently posted their 2011 Market Trends Report for Human Resources Information Systems (HRIS). There is an expected employment growth rate of about 8% over 2011 according to a survey from Manpower’s Outlook. However, that growth will not drive demand for core HRIS systems. Software Advice suggests that firms will better leverage existing systems by implementing new applications.
While HRIS demand will remain steady, it is likely that demand for strategic HR software will increase as firms up their hiring efforts and aim for a higher-performing workforce. Leading vendors will enhance their app portfolios through acquisitions, and we can expect to see some new blood in the market as the barriers to entry have lowered considerably in the past few years thanks to new deployment options.
Software Advice decided to track six high-level trends:
- Core HR
- Self-Service Applications
- Management Dashboards
- Strategic HR
- Cloud HR Systems
- New Entrants
You can read about each of these trends individually on the Software Advice blog, but we will dig into one in particular right now: Strategic HR.
The report predicts that this area will be the most active in terms of consolidation activity and will experience noticeable growth over 2011, despite the lowered demand during the recession. Talent management and performance management overlap quite a bit, sharing features such as recruitment automation, applicant tracking, and the onboarding and assessment of employees. Because of these apps, HR software vendors have been able to extend their reach, deploying hiring managers across the entire organizations. There have been several leaders in this area, but there is a micro-trend of core HR vendors entering this space as well. It will be interesting to watch this particular area develop over the year.
You can read more about these trends on the Software Advice blog, and be sure to take their survey at the bottom of the article that asks, “When do you think your organization is going to bite the bullet on a new or upgraded HR system?” They will post the results in the coming weeks.
CRM Market Analyst