Market Size of HR Management Software (Personnel and Organization) Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 11.15 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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HR Management Software Market Analysis
The HR management software (personnel and organization) market is expected to register a CAGR of 11.15% from 2022 to 2027. The market is driven by organizations shifting manual processes to digitalized and centralized operations. This helps in encouraging transparency and universal access, with other added benefits.
- The HR management software is the tool helping organizations overcome the limitations of manual work, leveraging the software to revolutionize their working patterns. With the increasing awareness in the ecosystem, the companies look forward to providing the latest automatic and data-driven experience to their employees to improve their work experience.
- Some of the added benefits of the HR management software include the provision of programmed and cloud-driven operations that omit manual entries and help avoid any errors and anomalies.
- Several companies are transforming business and internal workflows through partnerships with HR management software companies, which helps improve efficiency and transparency throughout the architecture. For instance, peoplematters. In April 2022, PeopleStrong partnered with Muthoot FinCorp, which employs over 18,000 people, to undergo a planned digital transformation, of which the overhaul of its people management system is part. The partnership aims at reducing the dependence on HR teams while enabling people and business outcomes.
- However, data security is a constant threat to the systems and software. The companies are constantly ensuring increased cybersecurity measures to handle sensitive information within a client organization. For instance, according to the Society for Human Resource Management, in December 2021, UKG experienced a data breach, affecting the payroll and other data connected to the employees of 2,000 organizations using their software. Such incidents make it crucial for companies to ensure high levels of data security.
- The COVID-19 pandemic and the world post the crisis have witnessed companies adopting hybrid work policies, including remote work facilities, flexible working hours, and remote onboarding of new joiners. Such changing trends have encouraged many small companies to leverage the benefits offered by an HR management software to facilitate smooth functionality.
