w hat w ork s ® b rief
|| APRIL 2013
Managing Talent through Technology:
HCM Buying Trends in 2013
After years of belt-tightening, HR professionals are again looking at new software
solutions to help in addressing the management of their human capital. We
surveyed readers of Human Resource Executive magazine and the Bersin Research
Exchange in Fall 2012 to discover whether companies seek to replace or add to their
currently installed and deployed human capital management (HCM) software — the
software used for both core HR and talent management.
What surveyed HCM buyers want includes:
•
Integrated talent management suites
•
Improved end-user experience
•
Improved integration across talent platforms
•
The ability to derive “people” analytics
The majority of HR professionals surveyed
indicated that they plan to procure new software
within the next 18 months (57 percent) —
and most indicated they will both replace and
procure new solutions (61 percent). Twenty-three
percent are solely replacing existing solutions and
16 percent solely plan to add new solutions to
their existing HR environments.
Figure 1: The Top Five Reasons
Organizations Seek a New HRIS*
New, better, faster technology
solutions in the market
76%
73%
Improve user experience
57%
Inability to get analytics
Business goals cannot be
addressed using this technology
54%
Unable to efficiently integrate
with other systems
54%
0%
50%
100%
Source: Bersin by Deloitte, 2013.
*Percentages may not add up to 100% as participants could select more than one option.
Replacing a Core HRIS System
WhatWorks® members have access to the entire
report, Managing Talent through Technology:
HCM Buying Trends in 2013, which provides
a look at plans by HR executives to change or
buy new software. According to our research,
one in four organizations plans on replacing a
current HRIS system in the next 12 to 18 months.
Of these, 14 percent of global companies are
looking to replace their HRIS/HRMS1, certainly
not a trivial task considering the complexity
of these large organizations. However, more
multinationals are anticipating changes in their
HRIS systems and another one-third of national
companies (those with operations only in one
country) plan to replace their HRIS.
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Standalone talent management applications
are the primary replacement targets for many
users; 20 percent indicated that they will replace
their talent management applications with an
integrated suite (see Figure 2).
The desire for change in the case of human
capital management (HCM) software for the
near future is likely not a reflection of random
dissatisfaction with a provider or a solution. Few
new HCM application investments were made
during the recent economic recession. As a
result, much software is perceived as outdated
and cumbersome, difficult to customize, and
expensive to support. “HRIS” stands for human resource information system; “HRMS” stands for human resource management system.
Copyright © 2013 Deloitte Development LLC. All rights reserved.
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w hat w ork s ® b rief
Figure 2: Top Three Talent Management Applications to Be Replaced in the Next 18 Months
Learning/Development Management
61%
Recruiting/Talent Acquisition
57%
Performance Management
52%
40%
50%
60%
70%
Source: Bersin by Deloitte, 2013.
The top four reasons why are listed in Figure 3.
Figure 3: Why Buyers Will Replace Their Talent Management Applications
68%
Improve user experience
61%
Unable to efficiently integrate with other systems
55%
New, better, faster technology solutions in the market
48%
Inability to get analytics
0%
50%
100%
Source: Bersin by Deloitte, 2013.
Recent software innovations have brought a new
look and feel to HR software — making it easier
to use, more end-user friendly, and often with
social and mobile capabilities. The requirement
for talent analytics has created the need for
improved embedded metrics, more sophisticated
(yet easy-to-use) tools, and compelling
dashboards.
From “nice-to-haves” to “have-to-haves,” the
need for better people management solutions
is driven by the compelling issues facing HR
professionals today.
Our Research
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