The technology folks really stepped up their game in the realm of human resources in 2012. There are a host of new platforms and initiatives that seem destined to have a significant and lasting effect on all aspects of human capital management. HR technology, itself, continues to expand its footprint by delivering content for mobile devices and social media and by taking advantage of the many available cloud solutions. Unfortunately, the cost for these advances is likely a greater consolidation of the HR technology industry with fewer vendors and, thus, fewer choices for clients.
With that said, here are our top picks for the technology trends that will have the most impact, for better or worse, in the coming year:
Expansion of Services for Mobile Devices & Social Media Sites
The newest generation of users changed the HR technology landscape once more in 2012. Social media and the use of mobile devices became more than mainstream – they are now indispensable, and HR companies scrambled to keep up with the newest evolution of the web. In 2013, the trend will continue and the most effective human capital management will be spread across every platform on a 24/7 basis.
The use of such platforms as Facebook and Twitter to facilitate the hiring process and provide better access for employees is just the tip of the iceberg. Sophisticated solutions are already under development by industry vendors such as Oracle, SAP and Workday. This rethinking of the HCM space will cause problems for those companies unwilling to change but also provide significant opportunities for those willing to adapt.
Expanded the Cloud and Embracing SaaS
The cloud is no longer a nebulous space where one securely stores their employee and customer data. The advent of software-as-a-service (SaaS) HR packages has dramatically altered the HR technology space. No longer beholden to prebuilt software suites, companies can demand that their exact needs be met and pay a proportionate fee for the service. Vendors however, recognized the detriment in forcing companies to buy products they did not need or want, so instead, have developed an elegant solution.
The HR landscape became more convoluted than ever in 2012 and it remains a good bet that it will do so again in 2013 with the introduction of the Patient Protection and Affordable Care Act. More and more companies are beginning to recognize the value of letting experienced and knowledgeable third party vendors deal with the administration, compliance and record-keeping of government laws and regulations such as the PPACA.
The industry, with the help of more knowledgeable and demanding clients, is still determining the best ways to institute customization and implementation. Naturally, legacy systems are contributing the vast bulk of the problems. Nevertheless, the HR migration to the cloud has begun and most companies now embrace the concept. It merely remains to be seen how the process will take place.
The Advance of HR Analytics
An epiphany seems have occurred in the HR technology space in 2012. It seems that some vendors finally realized that there was a wealth of untapped information floating around in the relational databases of most companies’ HR departments. While analytics capabilities were certainly available (and widely touted) in most HR software before 2012, the insights offered by the analytics were rarely staggering or even at all significant. For instance, knowing that you are 5% over on payroll for the week is of interest but understanding how to redeploy your sales force to sell 15% more is staggering.
2012 saw an end to the mere reporting of statistics – posing as analysis – and the development of more powerful tools along the lines of those available to CRM users is in the works. In the simplest terms, clients are demanding that HR software provide a bigger bang for the buck in terms of analytics. The major vendors responded by introducing modules with advanced business intelligence features that can perform such functions such as true data mining and warehousing, linear and non-linear predictive modeling and while-you-wait, online analytical processing (OLAP). Indeed, 2013 promises to be an expanding and exciting time for HR analytics.
The Downside – Mergers and Acquisitions in the HR Technology World
Wall Street and the investment bankers did not ignore the HR technology space in 2012. Some of the more notable transactions were:
- Oracles Corp’s acquisition of Taleo, a leading provider of cloud-based talent management software
- SAP Global’s acquisition of Success Factor, the leading provider of cloud-based Business Execution Software
- IBM’s acquisition of Kenexa, a provider of employee hiring and retention solutions
- Microsoft’s acquisition of Yammer, a developer of a leading freemiumenterprise social network
- The IPO of Workday, the new HR technology paradigm, a provider of on‑demand, cloud-based, seamlessly integrated, human capital management software
While these transactions were consummated by some of the biggest players in the HR technology space, the trend was also noticeable with smaller companies. In the end, this consolidation means fewer choices for the end-user. Hopefully, the acquirers, in the quick search for a better bottom line, will not jettison the very qualities and abilities that made the acquirees attractive in the first place.
The coming year will, most likely, see more of the same as the larger players seek to integrate the many “best of breed” providers of HR point solutions into their existing software suites. It will be interesting to watch as Workday and its end-to-end, seamlessly integrated HCM solution battles it out with the giants of the industry who have pieced their software together over the years. The important point for consumers to note is that the HR technology space is a constantly changing landscape and expert advice should be found before committing any substantial resources to it.
Goodbye 2012, Hello 2013
Most of the changes n 2012 bode well for HR savvy clients and the consolidation of the industry is not necessarily a bad thing. A concerted effort was made by the vendors in the industry to become more client-focused and to listen to the demands of their customers.
In fact, the space is no longer filled with clients who will mindlessly heed the demands of software sales people. HR software vendors who fail to recognize this fact are in for a rude awakening. Companies of every size are now populated with people who not only understand and use social media and mobile devices but also love them. 2013 could be a banner year for many companies as the economy finally rebounds. If so, it is time for these companies to embrace the HR technology change.
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What a provocative post! I’m not surprised to lean that there are mergers and acquisitions, however I am surprised to see such a lengthy list. I’m interested in how mobile application will lead to new social behaviors. One example of gamification that is being applied to guests at amusement parks and museums is at http://www.dash4cache.org. There is another example, driven by the alpine ski industry, at http://www.epicmix.com. The analytical may follow the user behaviors…t
Interestingly, HRIS systems are beginning to incorporate gamification into their software as well. Check out our information, What is Gamification.
I have to say, the Dash4Cache is really cool!