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The average human resource management system (HRMS) is nearly five years old. In 2015, companies should revisit their aging architectures, look to modernize and consider converting to highly flexible cloud-based systems.
Core HRMS and talent management features (payroll, performance management, recruiting, learning management, succession management) are available from most major enterprise resource planning (ERP) providers. But some exciting new tools can be found only through small, innovative vendors. These tools address informal learning, integrated network recruiting and candidate relationship management, social recognition, real-time employee feedback, culture assessment and fit, and many other areas. So as you firm up your core system of record into a single ERP suite, you may also find yourself wanting to buy innovative tools from smaller vendors as well. This will be a sound strategy for 2015. As long as you have a vendor that provides most of the core products you need, buying innovative cloud-based products as add-ons can be easy and affordable.
Key disruptions in the HR technology industry include:
In 2015, the HR software market will likely continue its shift from a focus on “systems of record” to a focus on “systems of engagement.” While vendor support and service is still critical to success, ease of use and ease of adoption are now key to selecting the highest-value HR technology platforms.
Josh Bersin is the principal and founder of Bersin by Deloitte, a research and advisory consulting firm in enterprise learning and talent management.
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