Global Human Capital Management Market Overview
Human capital management is the process of managing the employees in order to improve the overall performance of the organization. Its main focus is on providing the competitive advantage to the organization and is implemented in three categories such as workforce acquisition, human resource management and workforce optimization. It is a set of practices for recruiting, managing, developing and optimizing human resources of an organization. Its main functions are managing employee profile, payroll & compensation, benefits & perks, recruitment and selection, training & development and workforce analytics.
Advancement in technology for solving human resource problems has reduced the time span for solving the traditional human resource activities such as workforce profile, information regarding attendance, leave & performance status, recruitment, screening applications, and workforce analytics. This allows human resource manager to focus on retaining workforce, attract candidates and align organizational goals with individual goals that promotes the overall growth of the organization.
Market Size and Forecast
The market is observing vibrant growth on account of technology proliferation in big data analytics, artificial intelligence and internet of things. Further, increasing demand for unified HCM portal for employee activities for transparent visibility of activities in an organization such as attendance & leave of employees, perks & benefits, payroll & compensation and human resource rules & procedures is estimated to support the market. Increasing demand for streamlining human resource activities on the back of growing technological advancements which reduces the work time and help in speedy & easy flow of activities along with increasing adoption of digital HR technology are some of the significant factors that are expected to boost the growth of the market.
The human capital management market is anticipated to record a CAGR of 9.4% over the forecast period i.e. 2019-2027. The market is segmented by software into Core HR, employee collaboration & engagement, recruiting, talent management, workforce planning & analytics and others, out of which, the Core HR segment is expected to dominate the software market on the back of increasing demand for automation of HR functions. Moreover, the flexibility and easy access of data are increasing the demand for adoption of Core HR across various countries. Further, the market is segmented by deployment into cloud and on-premise, out of which, the cloud segment is expected to have largest market share on account of increased availability of internet connection with fast speed at a reasonable rate.CLICK TO DOWNLOAD FREE SAMPLE
Need for Streamlining Human Resource Activities
Increasing need of streamlining human resource activities on account of advancement in technology which helps in easy and speedy flow of human resource activities such as workforce analytics, recruitment & selection, payroll & compensation, benefits & perks, training & development and employee profile.
The rise in technological advancements helps in in easy and speedy flow of human resource activities such as workforce analytics, recruitment & selection, payroll & compensation, benefits & perks, training & development and employee profile. These features will help human resource manager to know the current level of activities and take decisions regarding future activities, resulting in efficient human resource management which is further estimated to boost the growth of the market in upcoming years.
Rapid Adoption of Digitalization
Increasing adoption of cloud based system and unified HCM suite is digitalizing the human resource activities and procedures by enabling an organization to digitalize and track recruitment, payroll and benefits, employee profile and other human resource activities. This allows medium and small enterprises to adopt modern human resource solutions at reasonable prices. These factors are anticipated to support the growth of the market over the forecast period.
Lack of Data Security in Cloud Based System
The rising adoption of cloud based system is increasing the level of cybercrimes such as malware, data theft and ransomware among other cyber-attacks. The lack of data security on cloud based system due to the absence of stringent rules and regulations pertaining to the cybercrime across various countries are expected to hamper the growth of the market during the forecast period.
Our-in depth analysis of the global human capital management market includes the following segments:
On the basis of regional analysis, the global human capital management market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to have largest market share on the back of presence of huge number of HR solution providers in this region such as software vendors, developers and system integrators. Increasing demand for automated human resource processes such as compensation management, performance management and talent management are expected to drive the growth of the market in this region.
Further, Asia-Pacific is expected to gain significant market share on the back of rising technological advancements that are helping HR to streamline HR policies and procedures. Additionally, increasing governmental support for adoption of digitalization and cloud based system is expected to boost the market shares in this region.
The global human capital management market is further classified on the basis of region as follows:
Direct access to analyst to help you understand the market in a better way to handle your critical question
Citing your business specific requirement our consultant would assist you ensuring targeted goal is achieved
Get 10% free customization