Human capital management (HCM) applications play a critical role for companies trying to achieve corporate goals and optimize enterprise performance. As a result, the latest AMR Research report predicts the HCM market will grow 13 percent over the next five years. The report found that there are a number of trends, which will contribute to the growth of this market. In particular, HCM applications are extending to line managers and executives outside of the human resources (HR) department, who are looking for better tools to manage and motivate employees. In addition, many mid-market companies are facing similar HCM issues, which will increase their demand for enterprise applications helping them manage their large employee base.
"Core HR applications are still important, but human capital management is a concern for every manager in the company not just the HR department," said Monica Barron, senior research analyst, AMR Research. "Applications including performance management, enterprise incentive management (EIM) and workforce optimization are critical to help managers keep their employees focused on the right activities and to steer the organization towards its corporate goals."
- The HCM footprint has moved beyond core HR applications to include applications that tightly link people, work and performance such as resource management, workforce optimization and Employee Performance Management (EPM).
- Successful enterprise-wide performance depends on alignment between individual goals and overall corporate strategy. Newer EPM applications are focused on visibility, alignment and flexibility allowing users to quickly adapt to changing business conditions.
- A successful employee performance strategy includes EIM, in which performance-based awards and compensation moves beyond the sales department and becomes pervasive throughout the organization.
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