Technology solutions to address our people and business needs remain dynamic. No longer is it only talent technology suites, but also traditional ERP/HRMS providers acquiring or developing talent management functionality in order to offer integrated talent, HR and, and analytics that support organizations’ strategy, talent processes, and core people data needs. An HRMS is typically defined as the core system of record that validates, maintains and presents data necessary for the administration and management of employees of an organization. There are multiple layers of information maintained in the HRMS, along with the associated data management processes. Traditionally, an HR ERP/HRMS has existed only to serve as the system of record for core employee data. Today, that is not case. In our recent analysis of HRMS capabilities, we have identified core and advanced feature sets.
Core feature sets in today’s HRMS providers include:
- Core Employee Identifying Information
- Employment Information
- Job, Position and Contract Data
- Location, Department and Supervisor
- Compensation and Grade, Level
- Performance Reviews
- Education, Competencies, Language Skills and Training
- Benefits Eligibility, Elections and Dependents
Advanced feature sets include:
- Position Planning and Budgeting
- Compensation Management and Planning (including Incentive Compensation)
- Talent Acquisition
- Performance and Goal Management
- Learning Management
- Stock Administration
- Workforce Scheduling and Optimization
These new capabilities are emerging as the new standard for HRMS functionality. So, just who are the HRMS players in the ring today? Here’s the list that our recent research has uncovered:
- Accero
- ADP
- Lawson
- Northgate/Arinso
- NuView
- Oracle EBS
- Oracle PeopleSoft
- SAP
- Silkroad
- Softscape
- Ultimate Software
- Workday
Each of these HRMS providers, while varying significantly in design and vision, have all leveraged core HR data and have acquired or built talent functionality such as workforce planning, talent acquisition, performance assessment, compensation management, succession planning, learning, and competencies. Thus, each has created itself as an integrated solution for strategic talent management and HR analytics with several, or all, of the following key differentiators:
- User Experience and Ease of Use
- Global HRMS Functions
- Embedded Talent Management Functionality
- Employee Centric View
- Broader Employment Categories
- Integration Capabilities
- Reporting and Complex Analytics
- Mobile HRMS Capabilities
- Robust HRMS Functionality
- Ongoing Support
While these HRMS providers are investing in integrated talent management functionality, talent management suite vendors have been busy building in an underlying infrastructure to handle the structure and throughput found in a conventional HRMS. This will enable these providers to present themselves as a complete solution. As a result, the intersection of HRMS and talent management categories continues to blur.
Do HRMS solutions deliver sufficient talent management capabilities? Can a system whose heritage is talent management applications fulfill the requirements of a HRMS? How will providers, whether from talent or HRMS heritage, continue to differentiate themselves? Or, will the market converge to one or the other as the preferred provider of people management technology?
I welcome your opinions and stories on this shift in the people technology market. In the meantime, stand by for our HRMS Market Report which is planned for release in the next several weeks. In this research, we will offer deeper analysis and thought provokers on this topic.