Human Resources Software Market: Global Industry Analysis and Forecast (2024-2030)

Human Resources Software Market Overview

Human resource software is designed to help employees and manage performance at their full potential and is implemented by businesses of all sizes to boost productivity and overall employee satisfaction. HR software is a digital solution that helps organizations streamline HR-related processes such as employee information management and document routing. Such HR information systems are the standard for fast-growing businesses that need to store confidential employee data securely, stay compliant with regulations, and boost the productivity of their HR professionals on a day-to-day basis.

 

The Human Resources Software Market report has been meticulously crafted using a combination of primary and secondary research techniques to ensure its reliability and accuracy. Primary research methods encompassed the distribution of questionnaires, conducting surveys, and engaging in phone interviews with a diverse array of experts, industry luminaries, marketers, and entrepreneurs operating within the Human Resources Software sector. Employing a bottom-up methodology, the report provided estimations for both global and regional market sizes. Additionally, a SWOT analysis was leveraged to spotlight the strengths and weaknesses of prominent players in the Human Resources Software industry.

 

The report has also covered several aspects that have been influencing the market growth such as the increasing remote work culture that has boosted the HR software market, and companies that are estimated to enhance communication with teams working from home. Thus, virtual meetings, recruiting, and onboarding may become a norm, which requires stellar communication and has propelled the market growth.

 

• 36% of HR leaders say companies don’t have the resources to recruit top talent.
• Making a job application mobile-friendly increases applicants by more than 11%
• 24% of companies have no strategy to onboard internal promotions.
• Comprehensive onboarding makes employees 33% more engaged at work

 

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Human Resources Software Market Dynamics

Driving Forces Behind the Surge in Human Resources Software Adoption

Surged demand for Human Resources Software owing to the efficiency, cost-effectiveness, and proper utilization of human resources has propelled the market growth.  HR software plays a crucial role in improving administrative efficiency and employee information security as a result many businesses have turned to cloud-based employee file management for the convenience, accessibility, and cost advantages that reduce the risks of unstructured data. An effective HR system has been consolidating crucial documentation in one place, so teams are able to retrieve files instantly and make more informed, faster decisions.

 

As there is a huge amount of sensitive employee data under the control of HR departments and it is crucial to adopt data protection measures at every step of the document management process, the software helps to manage and sort the documents easily. Additionally, HR organizations are shifting their focus from cost savings to strategic business alignment, process improvement, and employee engagement. Systems are able to schedule events, such as performance appraisals and benefit deadlines, automatically notifying and nudging if actions have not been performed. Organizations are actively seeking to transform the way to deliver and manage HR. As part of it, companies are increasingly buying and implementing new HR technology as a result it has accelerated the market growth.

The Role of AI and Cloud HR in Transforming Recruitment

One of the major trends in the HR Software market is the rapid development of technology such as AI, ML, NPL, etc. Technology is transforming the entire recruitment lifecycle. The surge in digitization has digitized everything, from resumes to interviews, and recruitment managers, who have tools at their disposal that help shape a seamless candidate experience. In 2024, the world is expected to rely on technology more than ever. trend is estimated to grow year on year, and companies are projected to implement advanced AI-based technology and tools. Recruiters have been automating tedious and repetitive tasks resulting in more time to focus on meaningful elements of recruitment.

 

Artificial intelligence is the present and future of HR trends, and its presence has been influencing globally. Companies are bound to use it to source candidates, parse resumes, and onboard candidates with more ease and accuracy. Even though 17% of organizations use AI in their HR function, another 30% is expected to use it by 2025. Thanks to collaborative project management and messaging suites like Slack or Trello, as well as cloud-based HR platforms, location is no longer an issue. Using cloud-based HR software is slowly becoming the norm not only for globally distributed teams. It’s much more scalable, so it’s great for fast-growing businesses, where it allows HR professionals to work with real-time data.

 

• 65 percent are using it to help generate job descriptions and 42 percent are using it to customize job postings, while about 33 percent are using AI to review or screen applicant resumes, to communicate with applicants during the interview process, or to automate candidate searches.

Navigating Challenges in HR Technology Adoption

Lack of awareness and education regarding the technology has been the biggest challenges that are faced by the market leaders. Companies have been heavily investing in high-quality HR technology that allows video interviews, continuous virtual communication, and meetings. But not every individual knows how to use these tools, so employers also have to provide employees with digital communication workshops resulting in a slower adoption rate of HR Software. Security is one of the major challenges in the Human Resources Software Market as systems are designed to prevent unauthorized access to sensitive and confidential data and also the unintended publication of such information.

 

This typically required many “compartments” and many levels of authority for access, all of which have to be monitored and maintained. Additionally, the rising demand has led to an increase in the cost of HR software.  Especially for smaller companies, it has been a problem. For instance, with any system, there are acquisition costs and maintenance costs and with larger installations, there’s probably the cost of hiring an IT specialist to manage the system.

 

• According to the STELLAR Analysis, 36% of HR professionals say they don’t have adequate technology

 

Human Resources Software Segment Analysis

Based on the Deployment type, Cloud segment dominated the market and is projected to maintain its dominance through the forecast period with an increasing CAGR. The adoption rate of cloud-based HR software has accelerated the market growth. One of the primary benefits of utilizing cloud-based HR software lies in its unparalleled accessibility. With reliable internet connectivity, technology allows users to seamlessly access HR functions from any location and device, at any time. In a remote work setup, employees efficiently manage tasks such as attendance tracking, logging working hours, retrieving crucial documents, and submitting leave requests.

 

In contrast, on-premise HR software necessitates a physical presence for conducting HR operations, limiting flexibility and efficiency, particularly in remote work scenarios. In alignment with evolving organizational dynamics, cloud-based HR software offers a tailored approach, enabling customization of features to suit your workforce management needs. The flexibility empowers to enhance HR operations in response to changing demands, fostering agility and adaptability within your organization. A cloud-based HR software allows employees to access all their vital information and communicate with their peers easily. Providing 24/7 access to HR operations makes employees feel trusted and motivated.

Human Resources Software Market Regional Analysis

North America dominated the market and is expected to maintain its dominance through the forecast period (2024 - 2030) with an increasing CAGR. The main factor boosting the market is the increase in the digitalization for effective human resources management systems across various industrial domains which has led to a rise in the demand for the HR software market in the region. In Addition, the surge in automation of HR processes has also influenced the market growth.

 

The key players in the region have been actively participating in the technology development that led to high demand in the market. For instance, in October 2023, EY and IBM joined together to introduce EY.ai Workforce, a cutting-edge HR platform that helps businesses smoothly integrate AI into their core HR business operations. This is a major step forward in the continued collaboration between the two organizations and a noteworthy accomplishment in terms of using AI to boost HR productivity.

 

North America has been a consistent adopter of contemporary technology and has embraced cloud-native technologies in excess. Integrating analytics into HRM systems is becoming easier due to advancements in current technologies like machine learning (ML), AI, and predictive analytics. AI-powered chatbots are being used by HR software and services to respond to common inquiries from employees on matters like leave policies and pay scales.

 

According to the STELLAR Analysis, there were 6.5 million business establishments in the U.S. with between 1 and 299 employees. 50 percent of SMBs use HR management software, it is estimated that around 3.2 million SMBs in the U.S. are expected to use these programs.

Human Resources Software Market Software Competitive Landscape

• On September, 2023, Oracle announced that it had agreed to acquire Next Technik. Next Technik provides field service management capabilities for NetSuite customers, which enable businesses to digitize and streamline scheduling and dispatch and the management of inventory and assets for increased productivity, and customer satisfaction.
• In April 2024, the HR Tech industry maintained its momentum with 23 significant deals. Talent Acquisition spearheaded the consolidation activity, trailed closely by HRMS. Additionally, other categories secured one deal each, showcasing a diverse landscape of consolidations.
• In July 2023, Info tech systems Integrators, a prominent Singaporean provider of cloud based HR and accounting software, signed a memorandum of understanding with Republic polytechnic. The strategic collaboration represents a noteworthy achievement for info tech and is geared toward promoting cooperation and generating valuable prospects.

Human Resources Software Market
Market Size in 2023	USD 18.87 Bn.
Market Size in 2030	USD 40.55 Bn.
CAGR (2024-2030)	11.55 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments	By Deployment Mode Cloud On Premise
	By Organization Size Small and Medium Enterprise Large Enterprise
	By Application IT and Telecommunication BFSI Government Healthcare Retail Others
Regional Scope	North America- United States, Canada, and Mexico Europe – United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Human Resources Software Market Software Key Players

North America

1. ADP (Automatic Data Processing)
2. Oracle Corporation
3. Workday, Inc
4. IBM Corporation
5. Cornerstone OnDemand, Inc.
6. Paychex, Inc
7. Mercer
8. Aon plc
9. ManpowerGroup Inc
10. BambooHR
11. Gusto
12. iCIMS
13. Greenhouse Software
14. Jobvite
15. Insperity
16. UKG Company
17. HRSoft
18. Cornerstone OnDemand

Europe

1. Randstad Holding NV
2. Accenture plc
3. Deloitte Consulting LLP
4. Ernst & Young LLP (EY)
5. nCore HR
6. Namely
7. Cezanne HR
8. Infor
9. HR-Technologies
10. Midland HR

Asia Pacific

1. MyHR
2. EDE Human Resource
3. SAP SuccessFactors
4. Oracle HCM Cloud
5. Workday
6. JuzTalent
7. Kronos
8. HR Cloud
9. HR Mangtaa
10. Agile HR
11. HR Trace