Key Findings & Highlights:

NelsonHall’s Next Generation HCM Technology report focuses on how modern HCM platforms and providers are supporting the ever-evolving workplace of the future and incorporating next-generation technology solutions to rethink HR processes and reimagine the employee experience.

The impacts of the pandemic rapidly accelerated an already intensifying need to digitize HR operations and thrust the future of work forward sooner than expected. Organizations across sectors are seeking to modernize employee experiences and enable digital HR capability for greater efficiency, insight, agility and resiliency in meeting the challenges of the next decade.

Workplace digitalization to drive productivity and elevate the employee experience, paired with the need to create more resilient, agile, and data driven HR operating models to support strategic business outcomes, continues to fuel cloud HCM platform adoption globally. While North America continues to lead all geographies in adopting modern cloud HCM platforms, each are expected to fuel continued adoption and growth with all major vendors increasing international targeting beyond North America.

Next generation HCM tech is being built for the user first, incorporating cognitive technology to continuously augment, personalize, guide, support, and engage employees along their journeys. HCM technology offerings are increasingly advancing toward AI and ML enabled ‘experience platforms’ designed to augment and support users for enhanced personal and HR outcomes. Providers are allocation >20% of annual revenues toward R&D to advance platform capabilities, with the employee experience at the heart of roadmap initiatives.

HCM technology delivery models are becoming more vertically centric aiming to support unique sector challenges, underpinned by high touch engagement models that seek to ‘orbit’ clients to ensure maximum ROI and value realization