IDC believes that under the general trend of digital transformation, the human capital management mode of enterprises determines whether enterprises can attract and retain talents, and even determines the future trend of enterprises. Driven by the integration of new technologies, how to deal with the opportunities and challenges faced by the digitalization of enterprise human capital management?
Cloud-native HCM SaaS is becoming the accelerator of digital transformation of enterprise human capital management due to its advantages of lower cost input, shorter deployment time, faster product optimization and update, larger scale advantage, more flexible application mode and so on.
What are the new challenges facing traditional HCM in the digital age?
Today, with the continuous development of digital technology innovation, traditional HCM management software is difficult to meet the needs of enterprise digital transformation, facing an insurmountable gap. According to the survey data from the Hebi study, traditional HCM management software faces the following challenges:
The most user criticism is high investment, low efficiency. The initial investment of traditional HCM management software is equivalent to the tip of the iceberg, and there will be a lot of subsequent upgrade, maintenance and operation expenses, which is not conducive to the long-term development of enterprises, such as large investment, high cost, long implementation time and low efficiency.
The mainstream foreign HCM management software has entered the Chinese market for many years, but it has not been completely improved. Due to the restriction and influence of Chinese laws, regulations, policies, management ideas and habits, the mainstream traditional HCM in the world is difficult to be implemented and successful in China due to the lack of consulting services and implementation services, although it has advanced technology and perfect functions.
Some enterprises will independently develop HCM, but with huge investment, they will encounter many difficult problems. Another part of enterprises will adopt outsourcing, which will inevitably correspond to multiple outsourcing suppliers. Excessive consumption of external resource management will also increase the cost of enterprises and reduce the operation efficiency.
Enterprises usually face mixed requirements when selecting HCM. At present, there are many consulting and service suppliers of single software and single business in the market, and they have made great achievements in certain specific fields, but it is still difficult to meet the comprehensive needs of enterprises. Because each supplier's internal systems are often different, it is often difficult for companies to integrate different systems.
When enterprises promote regional expansion, they will set up branches globally or nationwide, and it is difficult to achieve data unification with different management methods and software and hardware in different regions. However, data inconsistency will make it difficult to achieve BI side of business intelligence, and it will not be able to better guide business development through data pool management and analysis, so as to generate stronger scale effect. Nor can it achieve the goal of accumulating data and achieving business intelligence through machine learning.
HCM SaaS will become a digital accelerator for enterprise human capital management
Human capital management services are easier to deploy to the cloud. Due to the relatively standardized human capital management business and IT process, it is relatively easy to transition from traditional software deployment to the cloud. The human capital management product and architecture are solid, the changes are relatively uncomplicated, and fit well with the nature of cloud services. In addition, the data involved in human capital management is not as sensitive as financial data, and is within the range of security that enterprises can accept SaaS software.
HCMSaaS services have more advantages. Hiby Research has found that adopting the SaaS model for human capital management will reduce the need to upgrade expensive hardware and applications. SaaS provides a pay-as-you-go approach. Enterprises only need to pay for the functions and quotas they are currently using, and additional applications can be added as needed, greatly reducing the investment in IT and helping enterprises save costs in the process of development.
HCMSaaS makes enterprise information more secure. Backing up sensitive enterprise data is a huge undertaking, and cloud computing service providers will deploy a unified security solution that is more secure and efficient than internal enterprise collaboration.
HCMSaaS adds mobility options for enterprises, allowing employees to access data from different devices and different locations to conduct business. Increased mobility will improve customer experience and satisfaction.
In addition, in HCM SaaS, employees are not just a business operating cost, but a core asset of the enterprise that, like any other asset, can achieve maximum value through effective strategic investment and management.
More and more enterprises are willing to adopt HCM SaaS. IDC found that more and more enterprises have realized the importance of SaaS and hope to upgrade their human capital management strategies by using SaaS in the future. The advantages of lower cost input, shorter installation time and more convenient product optimization are in line with the needs of enterprise agility, innovation and cost saving. More and more enterprises will adopt SaaS mode deployment in human resource management.
Similarly, there are many HR SaaS providers in the market. Microsoft, SAP, Oracle, and traditional eHR vendors such as UFida, Kingdee, and Inspur have a large number of locally deployed software customers, but they are also stepping up their efforts to shift to the SaaS model. At the same time, HCM SaaS service providers, such as Workday in the United States and Beisen in China, are growing faster than traditional HCM.
HCM market is a relatively mature functional sub-market in the enterprise management SaaS market. At present, many integrated programs in the market include core personnel management, compensation and benefits, performance management, recruitment management, training management, labor management and other modules. There are also HCM SaaS service providers that focus on recruitment, evaluation and other functional modules.
Take Beisen as an example, it provides enterprise customers with the most basic cloud eHR software to solve employee recruitment, transfer, leave and attendance, compensation and welfare, and provides the ability to focus on recruitment, performance management, career and succession, etc. It combines the talent management software to realize the whole-cycle management of the career of talents with the talent management technology including talent evaluation, 360-degree evaluation and feedback, engagement survey, ability and quality model, etc., to help solve the consistency of enterprise data and application experience, and one-stop to meet the needs of most enterprises for human resources software.
However, according to IDC's survey, the maturity of HCM SaaS development in China is less than that of CRM SaaS market and collaborative application market. In the future, China's HCM SaaS market will usher in a golden period of development. Its functions are not limited to recruitment, evaluation and other fields, but will gradually develop into the core areas of HCM.
HCM SaaS two major breakthroughs
In the development of HCM SaaS, it is difficult for a single software, platform or consulting service to meet the overall needs of enterprise human resource management. Therefore, the aggregation of a set of integrated solutions is the focus of HCM SaaS development, and has become a major breakthrough in HCM SaaS.
Haibi research believes that in the HCM SaaS market, one-stop or integrated HCM SaaS is welcomed by users, but also shows more and more obvious advantages, and gives more value to customers.
In addition to the advantages of HCM SaaS, such as lower cost investment, shorter installation time, and more convenient product optimization, the scalability of business development of one-stop or integrated HCM SaaS can help growing enterprises rapidly expand scale and improve overall flexibility. In different development stages, the team size and business scale of the enterprise will change in different ways. HCM SaaS can adjust according to the resource usage of the enterprise, which can meet the needs of the enterprise at different development stages without causing the waste of resources.
Integrated SaaS can achieve the opening and sharing of data, complete the accumulation of data, can also use the data to complete the digital analysis function, and then rely on the data, the use of machine learning technology, the development of artificial intelligence technology, this flexibility can greatly improve the efficiency of enterprise operation.
Cloud native large and medium-sized enterprises HCM SaaS has become another breakthrough of HCM SaaS. SaaS is a standardized, out-of-the-box software service that usually only meets the enterprise's universal needs. Many domestic HCM SaaS service providers are fighting for survival. Many HCM SaaS services lock users in small, medium and micro enterprises with less personalized demand, and small and medium enterprises have high turnover rate and low renewal rate, which makes it difficult to adapt to the annual payment revenue model of SaaS subscription.
According to Hibi research, in China, HCMSaaS for large and medium-sized enterprises is expected to seize the new track with the all-saas model. It has become an important development strategy for enterprises to use cloud native technology to help enterprises digitize human capital management and support enterprises' digital transformation. Beisen, Inspur HCM, Yonyou DHR and other companies have launched HCM SaaS services for large and medium-sized enterprises.
Beisen targets users at large and medium-sized enterprises, and satisfies the customized and personalized needs of large and medium-sized customers through its PaaS platform without affecting the update and development of its SaaS universality. Beisen SaaS+PaaS business model, front-end integrated talent management Cloud platform iTalent, to ensure the efficient integration of the whole process of customer talent management business, back-end personalized development PaaS platform Beisen Cloud to meet the personalized needs of different enterprises.
Beisen PaaS platform also solves the problem of product homogeneity and improves the service breakout ability in the market. Under this business model, PaaS has become the core competitiveness of Beisen.
By virtue of the real-time, massive and data analysis capabilities of PaaS platform, Beisen establishes a whole-process and cross-application data integration analysis model, based on which each enterprise can build its own business decision model and implement more AI big data business scenarios, such as judging the performance of candidates and matching between people and posts.
In the U.S., HCM SaaS has taken off, with Workday, the largest player in HR management, valued at over $20 billion, Taleo, Ultimate, Paycom Software, an HCM service for small and medium businesses, and others all valued in the billions of dollars. In the development of HCM SaaS service, Beisen adheres to the integration of talent management, based on the whole process of PaaS platform cross-application data integration and ecological connection integration, and reduces the user turnover rate while increasing the subscription. By providing professional customer successful services, Beisen is expected to grow into China's Workday.
