Human Capital Management (HCM) software is one of many technologies being influenced by mass resignation and an uncertain employment landscape. Challenges in hiring and retaining quality talent are prompting organizations to invest in areas such as benefits, talent acquisition, and people analytics, with HCM software being at the helm. Nucleus Research has released its HCM Technology Value Matrix, with key findings regarding how innovation and updates in the past year have directly reflected the need to be able to quickly adapt to changes concerning employees.

Manual approaches to HR are no longer viable; automation gives HR leaders the time required to create strategies and action plans for a multitude of challenges that could be faced, such as a mass employee exodus. This enables organizations to act proactively, rather than reactively, in responding to changes. As such, leaders in the HCM space have focused investment on tools that attract quality talent amid a shortage of willing participants: sourcing, recruiting, onboarding and training, and capabilities that improve engagement among existing employees thereby avoiding costly turnover. Additionally, the barrier to entry of such tools seems to be on a downward trend, a major boon for SMBs struggling to remain an attractive option for employees in such a competitive landscape. For instance, the use of people analytics continues to scale from enterprise use cases into the lower midmarket and enables organizations of all sizes to drive valuable insight from HR data without the need for dedicated analysts.

Nucleus’s 2022 HCM Technology Value Matrix offers a breakdown of HCM technology industry leaders, experts, facilitators, and core providers for businesses looking to invest in a solution:

• Leaders: Ceridian, Infor, Oracle, UKG Pro, and UKG Ready.
• Experts: ADP, Paychex, SAP, and Workday.
• Facilitators: iSolved, Paycom, Paycor, PeopleStrategy, Rippling, and Unit4.
• Core Providers: Ascentis, Gusto, and SyncHR.

“The HR department has historically been the oft-ignored business unit but now, business leaders are recognizing the value of investing in their workforce when facing hiring challenges, mass resignations, and general uncertainty,” said Nucleus’s Research Manager, Evelyn McMullen. “As talent acquisition and retention remains top of mind for businesses, I expect HCM software to be critical for workforce management and analytics, talent acquisition processes, on-demand pay, and more in 2022.”

To create the 2022 HCM Technology Value Matrix, Nucleus Research analysts evaluated HCM providers based on the relative usability and functionality of their solutions, as well as the customer value realized through use of the product’s capabilities.

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