What surveyed HCM buyers want includes:
• Integratedtalentmanagementsuites
• Improvedend-userexperience
• Improvedintegrationacrosstalentplatforms
• Theabilitytoderive“people”analytics
ThemajorityofHRprofessionalssurveyedindicatedthattheyplantoprocurenewsoftwarewithinthenext18months(57percent)—andmostindicatedtheywillbothreplaceand procurenewsolutions(61percent).Twenty-threepercentaresolelyreplacingexistingsolutionsand16percentsolelyplantoaddnewsolutionstotheirexistingHRenvironments.
Replacing a Core HRIS System
WhatWorks®membershaveaccesstotheentirereport,Managing Talent through Technology: HCM Buying Trends in 2013,whichprovidesalookatplansbyHRexecutivestochangeorbuynewsoftware.Accordingtoourresearch,oneinfourorganizationsplansonreplacingacurrentHRISsysteminthenext12to18months.Ofthese,14percentofglobalcompaniesarelookingtoreplacetheirHRIS/HRMS1,certainlynotatrivialtaskconsideringthecomplexityoftheselargeorganizations.However,moremultinationalsareanticipatingchangesintheirHRISsystemsandanotherone-thirdofnationalcompanies(thosewithoperationsonlyinonecountry)plantoreplacetheirHRIS.
Standalonetalentmanagementapplicationsaretheprimaryreplacementtargetsformanyusers;20percentindicatedthattheywillreplacetheirtalentmanagementapplicationswithanintegratedsuite(seeFigure2).
Thedesireforchangeinthecaseofhumancapitalmanagement(HCM)softwareforthenearfutureislikelynotareflectionofrandomdissatisfactionwithaproviderorasolution.FewnewHCMapplicationinvestmentsweremadeduringtherecenteconomicrecession.Asaresult,muchsoftwareisperceivedasoutdatedandcumbersome,difficulttocustomize,andexpensivetosupport.
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.
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54%
54%
57%
73%
76%
0% 50% 100%
Unable to efficiently integratewith other systems
Business goals cannot beaddressed using this technology
Inability to get analytics
Improve user experience
New, better, faster technologysolutions 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.
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1 “HRIS”standsforhumanresourceinformationsystem;“HRMS”standsforhumanresourcemanagementsystem.
RecentsoftwareinnovationshavebroughtanewlookandfeeltoHRsoftware—makingiteasiertouse,moreend-userfriendly,andoftenwithsocialandmobilecapabilities.Therequirementfortalentanalyticshascreatedtheneedforimprovedembeddedmetrics,moresophisticated(yeteasy-to-use)tools,andcompellingdashboards.
From“nice-to-haves”to“have-to-haves,”theneedforbetterpeoplemanagementsolutionsisdrivenbythecompellingissuesfacingHRprofessionalstoday.
Our Research
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WelookforwardtohelpingyoutomakesenseofthedynamicandcomplextechnologyenvironmentthroughourWhatWorksmembership2andsystem.
About Bersin by Deloitte
BersinbyDeloittedeliversresearch-basedpeoplestrategiesdesignedtohelpleadersandtheirorganizationsintheireffortstodeliverexceptionalbusinessperformance.OurWhatWorks®membershipgivesFortune1000andGlobal2000HRprofessionalstheinformationandtoolstheyneedtodesignandimplementleadingpracticesolutions,benchmarkagainstothers,developtheirstaff,andselectandimplementsystems.ApieceofBersinbyDeloitteresearchisdownloadedonaverageapproximatelyeveryminuteduringthebusinessday.Morethan5,000organizationsworldwideuseourresearchandconsultingtoguidetheirHR,talentandlearningstrategies.
ThispublicationcontainsgeneralinformationonlyandDeloitteisnot,bymeansofthispublication,renderingaccounting,business,financial,investment,legal,tax,orotherprofessionaladviceorservices.Thispublicationisnotasubstituteforsuchprofessionaladviceorservices,norshoulditbeusedasabasisforanydecisionoractionthatmayaffectyourbusiness.Beforemakinganydecisionortakinganyactionthatmayaffectyourbusiness,youshouldconsultaqualifiedprofessionaladvisor.Deloitteshallnotberesponsibleforanylosssustainedbyanypersonwhoreliesonthispublication.
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ThetopfourreasonswhyarelistedinFigure3.
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
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2 Formoreinformationonourresearchmembershipprogram,pleasevisitwww.bersin.com/membership.
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