HCM Buying Trends in 2013

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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 Executivemagazine 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.

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HCM Buying Trends in 2013

  1. 1. 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. 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. 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 As a result, much software is perceived as outdated and cumbersome, difficult to customize, and expensive to support. 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. || APRIL 2013 54% 54% 57% 73% 76% 0% 50% 100% Unable to efficiently integrate with other systems Business goals cannot be addressed using this technology Inability to get analytics Improve user experience New, better, faster technology solutions in the market Figure 1: The Top Five Reasons Organizations Seek a New HRIS* Source: Bersin by Deloitte, 2013. *Percentages may not add up to 100% as partici- pants could select more than one option. whatworks®brief Copyright © 2013 Deloitte Development LLC. All rights reserved. 1 1 “HRIS” stands for human resource information system; “HRMS” stands for human resource management system.
  2. 2. 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 WhatWorks members select from nearly 1,000 research-based resources, including 230 research bulletins on the latest trends, nearly 200 case studies, and 70 in-depth industry studies comparing solution providers and identifying leading practices in technology assessment, selection, and implementation. We look forward to helping you to make sense of the dynamic and complex technology environment through our WhatWorks membership2 and system. About Bersin by Deloitte Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. Our WhatWorks® membership gives Fortune 1000 and Global 2000 HR professionals the information and tools they need to design and implement leading practice solutions, benchmark against others, develop their staff, and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent and learning strategies. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. The top four reasons why are listed in Figure 3. Figure 3: Why Buyers Will Replace Their Talent Management Applications Source: Bersin by Deloitte, 2013. 48% 55% 61% 68% 0% 50% 100% Inability to get analytics New, better, faster technology solutions in the market Unable to efficiently integrate with other systems Improve user experience Figure 2: Top Three Talent Management Applications to Be Replaced in the Next 18 Months Source: Bersin by Deloitte, 2013. 52% 57% 61% 40% 50% 60% 70% Performance Management Recruiting/Talent Acquisition Learning/Development Management whatworks®brief Copyright © 2013 Deloitte Development LLC. All rights reserved. 2 2 For more information on our research membership program, please visit www.bersin.com/membership. Bersin by Deloitte 180 Grand Avenue, Suite 320 Oakland, CA 94612 +510-251-4400 Info@bersin.com www.bersin.com

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