Trends shaping the Global Human Capital Management Market
Posted by Andrew Thomas on August 27th, 2019
Human resources is one occupation which is always under the spotlight. From finding the right people to join the business to keeping employees motivated and ensuring they grow as well as remain positively engaged; human resource professionals have a very tough job that requires the right blend of emotion as well as practicality. During intense times when business shed resources, it’s the human resources team that works relentlessly to ensure smooth transition and protection of the business interests alongside offering outgoing employees with the required severance and notice period. All in all, human resources are one division which is constantly dealing with various automated as well as real issues and hence this industry requires technology that can support its growth and functioning.
With the advancements in innovative technology solutions like artificial intelligence and Internet of Things, as well as the forays the human resource industry has made in bring about automation, the global human capital management market is expected to be worth nearly USD 29.9 Billion by the year 2023 as the market is anticipated to grow at a year on year compound annual growth rate (CAGR) of 8.7% starting year 2018 and ending in the year 2023. These figures are taken from the research report published on the official website of Research on Global Markets, a market intelligence firm. The report attributes the growth primarily to automation and providing end to end solutions.
Here’s a quick look at some of the upcoming trends that are going to shape the future of the global human capital management market.
1) Personalization – It may seem like a contradiction to how HR performs traditionally. HR has always played a role in standardization of policies, benefits and procedures, however now it is being observed that increasingly organizations are focusing on personalization to make the workplace employee friendly. Every employee’s needs for reward and recognition, perks, benefits, flexibility etc. are unique and hence through technology and data analytics, human resources professionals are working towards making HR processes more personalized for the employees.
2) Transparency - for the longest time, trust has been a very critical factor in human resources. Do employees trust their organization/management/boss? Various surveys have thrown similar results which show how trust is very poorly handled in organizations irrespective of what size it is. Wil technology specifically Artificial Intelligence coming into the picture, the overbearing human bias problems may be eradicated fostering a culture of trust in the organization.
3) Mentoring and Coaching – its important to grow within the organization and hence mentoring and coaching play a significant role. Learning and development software as well as coaching software are a hot favorite segment in the global human capital management market.
The market currently is being divided into three top segments namely by software, by component and by region. The software segment of global human capital management market is currently being dominated by workforce management software, whereas the segment based on components is dominated by cloud-based SaaS software. In terms of region, North America seems to be leading the implementation of Human Resource management.
