Market Description
People are the biggest expense for most enterprises, and to manage all their people automation needs, they use human capital management (HCM) suites. HCM suites encompass key automation in the functional automation areas of HR core, payroll, talent management, and workforce management (and in North America also benefits administration). Increasingly, vendors have been paying attention also to the employee experience (EX) and have added capabilities for surveys and recognition as well as transactional processes automated in people journeys.
The goal is to keep people happy, motivated, and engaged, working actively on their personal, team, division, and ultimately enterprise goals. A key aspect is to ensure correct pay: 90% or more of people work to live, so paying them is crucial, and “pax payroll” is a state every enterprise CxO team strives for: the state where people focus on their work and don’t worry about their paycheck. At the same time, learning has become the new social compact of the enterprise—because people know their skills need to change on a regular basis, and knowing the enterprise will help them accomplish that is key for motivation and retention.
Vendors in this market come from various lineages—historically from payroll, enterprise resource planning (ERP), or workforce management. Constellation expects this market to increase from $32 billion in 2025 to $50 billion by 2030.
