Five HR Technology Predictions for 2014

FIVE HR TECHNOLOGY PREDICTIONS FOR 2014

PREPARED BY: MARC MILLER

Marc S. Miller Associates

January 7, 2014

1- Metrics will be considered a “must have” component of any HR Technology software application. Leading vendors will provide templates of graphically pleasing “dashboards” which will replace the ad-hoc reporting in “pop and sizzle”.  These same vendors will push the case for a business partnership – helping HR become the strategic force it needs to be – in most organizations. Analytics from the world of “Social Media” will be a big part of any “new metrics” delivered by the more successful vendors. “Big Data” will be a relatively new “lexicon” within HRT and the vendors will talk it up to show the timeliness of their offerings.

2- Thinking they can enter the comprehensive HRT market, “niche’ vendors – that heretofore had only a specific application (such as Time and Attendance or Talent Management) – will make a concerted effort to partner or otherwise integrate with, another vendor’s HRIS capabilities – so to appear as a fully functional HRT provider. This will not prove to be very successful.

3– New vendors offering “one to many”: hosted SaaS HR applications will emerge and try to duplicate the success of Workday… at a cheaper price point (Per Employee per Month).  It will be feasible for the price point for a comprehensive HR, Payroll and Benefits administration system (“HCM”), to drop to a level beneath $10 PEPM for these core modules (after Implementation costs). Keep an eye on such vendors as PeopleStrategy, HRCloud, and cfactorWorks.

4– SaaS – Software as a Service – will continue to penetrate and energize the HR Technology (HRT) application marketplace.  A predominate number – possibly greater than 85% of all new HRT sales and implementations – will be for hosted, SaaS delivery via the Cloud  by a relatively smallish group of both established and upstart vendors.  These sales will be driven by HRT executives who are replacing on-premise HRIS applications and have recognized the cost effectiveness and robust functionality for Web-delivered (on multiple devices) HR administration, on boarding, Talent Management and Performance Management – anytime and anyplace.

5 – Global Payroll providers, not well known in the US market – such as Cloudpay, Northgate Arinso, and SafeGuard will strengthen formal collaborative arrangements and partnerships with the US based market leaders in HR Technology, creating a “win-win” situation to expand Global Payroll integration with HCM. This will gain traction throughout 2014.