Preliminary research of Fairfield Market Research indicates a promising growth outlook for global HR technology market during the course of next few years.
Mounting Investments in HR Technology Automation Will Favor Human Resource Technology Market Growth
Adoption of HR management systems has significantly increased over the last few years. With the sector changing due to COVID-19, the gig economy, and other things, businesses are finding it more challenging to manage their workforces. However, there is also a chance offered by this conflict. The human resource (HR) technology market attracted over US$11.5 Bn of venture capital in 2021, doubling its investment rate from the previous year. On the whole, businesses aim to invest more in automation and HR technology for their essential procedures. Lowering expenses overall helps businesses plan their operations more effectively. Following the global COVID-19 pandemic outbreak, the whole landscape of numerous sectors has undergone a significant transformation. The pandemic's impact forced several industries to develop new strategies and change their business models. For them to recover from the epidemic, HR technology proved to be one of the most responsive and dependable resources. Paradox, iCIMS, Textio, Phenom People, Jobvite, XOR.ai, Upwork, and Eightfold AI are among a few of the leading businesses creating AI for HR and recruiting. Therefore, growth of human resource technology market is accelerating due to the increased emphasis on fair hiring. The COVID-19 pandemic has most recently brought attention to the significance of HR technology, which has changed dramatically over the previous five years. Remote and hybrid working are now among the most significant and likely long-term changes to the modern workplace since the epidemic. The World Economic Forum reports that the proportion of remote workers has increased dramatically after the COVID-19 epidemic.
Human Resource Technology Market: COVID-19 Impact
Human resource teams and departments have been forced to adopt new approaches to respond to or meet the demands of the workforce due to the abrupt shift in market dynamics of working models: Since the COVID-19 pandemic, demand for human resources technology solutions such as workforce management, talent management, recruitment, and payroll management among others is on the rise. One of the most significant changes organizations has implemented is the shift to remote work culture and virtual collaboration to address the complexity of public health and economic disasters. Professionals used the software to handle payroll tasks effectively and manage employee-management communication. The key participants in HR technology market concentrated on joint ventures, mergers and acquisitions, research and development, and partnerships to help organizations manage their workforces. For instance, In August 2020, For the organization-wide implementation of SAP SuccessFactors solutions, SAP SE collaborated with the German IT firm Bechtle AG. This collaboration will aid in consolidating and unifying Bechtle's human resource management procedures. With a data-driven human resource model, the company wants to give its employees a digital experience.
In addition, businesses are anticipated to prioritize their investments in smart technologies like the cloud, Artificial Intelligence, robotics, and machine learning after the pandemic to streamline operations and cut costs. This is anticipated to present significant business opportunities for vendors in human resource technology market. Additionally, market players were concentrating on creating brand-new products or adding new features to already-existing ones to meet the rising need for recruiting performance management, capital management, payroll, and other talent management solutions. For Instance, In April 2022, Oracle ME, a platform for employee experiences, was introduced by Oracle Corporation. Organizations can increase employee engagement with the help of the platform. The platform is a component of Oracle Fusion Cloud Human Capital Management (HCM), which helps recruiters to develop talent, update communications across the organization, and increase productivity by managing personnel.
Human Resource Technology Market Will Substantially Benefit from Growing Integration of Artificial Intelligence, and Machine Learning
Better recruiting process optimization is made possible by the widespread use of ML and AL algorithms in HR technology software. Automation of hiring operations, including arranging interviews, reviewing interview performance, and responding to simple inquiries is made possible by the integration of AI applications such as virtual assistants, and bots. The bot uses logic to understand customer requests and interact with business processes to produce the intended outcomes. This is likely to drive the growth of human resource technology market. For instance, In March 2022, Heyjobs, a startup in HR technology, secured capital totaling US$47 Mn. The company intends to utilize the investment to expedite the incorporation of Al technology in solutions for talent acquisition and to grow its operations throughout Germany. In addition, in June 2021, The provider of HR payroll software and solutions, ActivePayroll, collaborated with Cornerstone OnDemand, Inc. The alliance intends to connect ActivePayroll's technology with Cornerstone's extensive range of resource services, which includes personalized learning, hiring, performance monitoring, and human resource planning.
Similarly, it is anticipated that the quick adoption of Al technology by recruiters to carry out and improve recruitment duties would open up new business prospects in the future. For instance, according to Jobvite's 2021 Recruiter Nation Report. More than in 2020, Al was utilized by recruiters at all phases of the hiring process. Nearly 39% of respondents said they utilized Al in 2021 to promote jobs on employment websites, and 34% of recruiters said they used the technology to suggest jobs based on job descriptions.
Increasing Integration of RPA Drives Human Resource Technology Market
Robot process automation (RPA) technology enables firms to deliver more effective personnel management methods while fostering innovation and increasing productivity in HR management solutions. Companies are searching for fresh, creative ways to hire new employees and offer cost-effective services. Enterprises may standardize operations by avoiding additional IT costs thanks to RPA capabilities powered by AI and machine learning. To meet end-user needs, vendors in HR technology market provide cutting-edge tools integrated with RPA. For instance, Oracle Corporation offers Oracle Digital Assistant, a chatbot for human resources that lets staff quickly receive answers to their questions and conduct transactions by text or voice. Oracle Digital Assistant assists with more than 90 prebuilt transactions and solutions with new needs and processes.
Data Privacy and Integration Issues Act as a Significant Barrier to Human Resource Technology Market Expansion
Human resource management software enables effective digital management of personnel data. With a few mouse clicks on the system, human resource management teams can easily monitor employee performance, leaves, and payrolls. Social distance has been a significant factor in organizations moving from traditional forms of communication and collaboration to digital infrastructure during the upsetting times of the epidemic. A successful strategy for isolating people from society is the remote work culture. Companies face a big issue as more people work from home. Additionally, data security vulnerabilities have increased as remote work has become more prevalent. It is thus crucial to assess human resource software to ensure that it satisfies the unique security requirements of human resource management. Data security, and privacy gaining the limelight are likely to influence the performance of human resource technology market.
Cloud-Based HR Technology Will Lead Human Resource Technology Market
The HR technology market is divided between on-premises and cloud deployments. As SMEs increasingly adopt cloud technology, cloud-based deployments are predicted to increase more quickly in the upcoming years. The top competitors in the market are moving away from on-premise software and toward the cloud in response to the rising demand for affordable cloud-based solutions across industries. The cloud-based HR technology industry in North America is anticipated to double in size during 2022 and 2025, and 2022 will be considered a turning point, as per SAP North America Senior Vice President and Managing Director of East Region, Lloyd Adams, The COVID-19 epidemic has similarly compelled businesses to switch from on-premise to cloud solutions. These elements are anticipated to accelerate cloud implementation during the forecast period, impacting the growth of human resource technology market.
Healthcare Sector Dominates Human Resource Technology Market Owing to Rising Demand for Hiring Workers
According to the Monster Employment Index, the demand for healthcare professionals increased in December 2021. It is anticipated that the healthcare sector will drive the adoption of human resource management solutions due to the surge in demand to hire the right talent and manage a large workforce in January 2022. Due to the coronavirus's rapid growth, there is an increased need for competent workers in senior management, finance and accounting, software, hardware, and telecommunications. Therefore, healthcare organizations are more likely to use human resource management systems to hire and oversee their workforce, which will provide a strong impetus to the global human resource technology market.
Asia Pacific Poised to be the Fastest Growing Human Resource Technology Market as SMEs Flourish
Asia Pacific’s HR technology market expects solid growth over the next few years. Increased collaborations, funding, and investments will enable small and medium-sized firms to operate more widely, which is anticipated to fuel market expansion in this area—taking January 2021 as an example. Darwinbox, an Indian HR technology platform, received a US$15 Mn investment from Salesforce. Inc. The company wants to extend its operations in Southeast Asia and further boost economic growth in the nation. The popularity of technology like cloud computing is also expanding. Al and ML. are anticipated to drive this region's demand for human resource management software. For instance, 63% of large firms, 39% of medium enterprises, and 38% of small enterprises increased cloud adoption in the NASSCOM study in 2022.
Global Human Resource (HR) Technology Market: Competitive Landscape
The human resource technology market is a tightly-knit industry where the leading companies hold a dominant position. The leading companies in the industry are SAP SE, Oracle Corporation, Infor Inc., ADP Inc., Cornerstone OnDemand Inc., Ceridian HCM Holding Inc., Workday Inc., Cegid Group, Hi bob Inc., and The Access Group.
Recent Notable Developments
Regional Classification of Global Human Resource Technology Market Can be Given as Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Human Resource Technology Market
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