Report

The HR Management Software Market is expected to register a CAGR of 11.15% during the forecast period.

Key Highlights
- The HR management software is the tool helping organizations overcome the limitations of manual work, leveraging the software to revolutionize their working patterns. With the increasing awareness in the ecosystem, the companies look forward to providing the latest automatic and data-driven experience to their employees to improve their work experience.
- Some of the added benefits of the HR management software include the provision of programmed and cloud-driven operations that omit manual entries and help avoid any errors and anomalies.
- Several companies are transforming business and internal workflows through partnerships with HR management software companies, which helps improve efficiency and transparency throughout the architecture. For instance, peoplematters. In April 2022, PeopleStrong partnered with Muthoot FinCorp, which employs over 18,000 people, to undergo a planned digital transformation, of which the overhaul of its people management system is part. The partnership aims at reducing the dependence on HR teams while enabling people and business outcomes.
- However, data security is a constant threat to the systems and software. The companies are constantly ensuring increased cybersecurity measures to handle sensitive information within a client organization. For instance, according to the Society for Human Resource Management, in December 2021, UKG experienced a data breach, affecting the payroll and other data connected to the employees of 2,000 organizations using their software. Such incidents make it crucial for companies to ensure high levels of data security.
- The COVID-19 pandemic and the world post the crisis have witnessed companies adopting hybrid work policies, including remote work facilities, flexible working hours, and remote onboarding of new joiners. Such changing trends have encouraged many small companies to leverage the benefits offered by an HR management software to facilitate smooth functionality.


HR Management Software Market Trends

Benefits of the HR Management Software Driving the Market


- Integrating HR management software with an organization's workflow and operational architecture offers many benefits. The companies observe instant changes in the form of data-backed resources adding value to the company's everyday operations. The software offer customizability, leveraging several thoughtful additions in the package offered by the service providers. Such benefits are driving the market's growth, with businesses of all sizes digitalizing their interactions with the help of this software.
- For instance, according to UKG Inc, Miami Dolphins had a manually-managed goal-setting process, with limited access for quick reference, making tracking the data difficult. The company opted for UKG Pro Performance Reviews, helping employees to access their goals easily and managers follow the teams' progress. UKG Pro people Analytics helped the Miami Dolphins increase employee engagement, with the data fulfilling payroll and HR data needs.
- The software promotes active communication among different team levels, with the features facilitating inter-and intra-departmental communication. The organizations deploy work or personal devices with installed software helping efficient communication for everyday needs. Moreover, the added access points help share required documents, providing the companies their private networks in the form of their accounts to also share sensitive information easily and reliably.
- Further, the software assists HR manage payroll, direct deposits, taxes, and other financial functions in a data-backed and accurate way. The software offer data-retrieval in different forms, allowing the users to leverage the information in making data-backed decisions, adding accuracy to the processes. This helps in enhancing the overall work performance and productivity across different departments.
- Also, the software nowadays provides recruitment management, simplifying the process of managing talent and streamlining the process with data. Thus, such benefits attract small and large businesses to digitalize their workflow, save on resources, and manage their business better. The added benefits over the conventional, manual process help overcome the uncertainty or errors, adding precision and security to the workflow. Such factors will propel the market for more businesses and companies to welcome the latest HR management software from different players in the market.


North America to Dominate the Market Growth


- North America is a hub for many start-ups and global companies. Global business groups in different industries have their global headquarters and significant workforce and manufacturing units in the US. Some multinational companies, like Alphabet Inc, AT&T, Dell Technologies Inc, Cisco Sysrtems Inc, Apple Inc, etc., have a significant share of their workforce in the United States. This creates widescale demand for efficient human resource development software.
- Also, the region's growing economic prosperity welcomes new companies and start-ups for long-term establishments, creating vast opportunities for HR management software. For instance, according to the Bureau of Labor Statistics, the quarterly number of business starts in the United States accounted for around 356,000 businesses in the third quarter of 2021. The long-term trade benefits of a dense market attract HR management software companies to offer their services at a wider scale, propelling the growth further.
- Several partnerships among brands take place in the region to advance the operational capabilities of different operating units of organizations, developing the overall ecosystem in the area. For instance, in February 2022, UKG Inc acquired SpotCues, and its mobile communications platform, Groupe.io. The partnership will witness the integration of SpotCues' mobile communication platform for the frontline workforce with UKG's solutions like UKG Pro, UKG Dimensions, and UKG Ready, facilitating improved communication and employment experience.
- The area registers a fast recovery from the COVID-19 pandemic and related economic impacts through employment, decreasing the number of unemployed population. For instance, according to the Bureau of Labor Statistics, the monthly number of long-term unemployed persons in the US accounted for 3.97 million in June 2021, compared to 1.34 million in June 2022. The growing employment among the masses demands efficient HR management software to help companies retain employees through an enhanced employee experience.


HR Management Software Industry Overview

The HR management software market is witnessing several new entrants and bigger players with their cloud-based offerings. Due to many players, the market is moderate to highly fragmented, depending on the geographical region, and displays an average intensity of competition. Several players leverage acquisitions and other strategic integration of services with clients and partners to facilitate smooth internal function.


- June 2022 - Workday, Inc. announced that Mohegan had selected Workday Human Capital Management (HCM) and Workday Financial Management to support its global growth. With more than 10,000 employees worldwide, Mohegan is a master developer and operator of premier entertainment resorts. The organization is experiencing accelerated growth as it expands operations across countries, including the U.S., Canada, and South Korea. With Workday, Mohegan will leverage one system for finance and HR with a single source to help manage, optimize, and automate business processes, improve planning and reporting to support global expansion, and deliver engaging employee experiences by eliminating manual data entries and automating finance and HR functions.
- March 2022 - UKG Inc. announced the acquisition of Ascentis Corporation. Ascentis Corporation provided full-suite HR and workforce management solutions, registering a growth from 860 customers to 4,800 customers in the past five years. As part of the acquisition, several Ascentis employees throughout the United States and Montevideo, Uruguay, joined UKG. The acquisition further strengthens UKG's market strength by adding tenured industry expertise, with UKG currently employing around 14,000 employees worldwide.


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- The market estimate (ME) sheet in Excel format
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