HCM Cloud Watch 2020 Capgemini Invent, Netherlands - September 2020
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TABLE OF CONTENTS 01 Context 02 Executive Summary 03 HCM Cloud Solution Feature Overview 04 Market Trends 05 Vendor Landscape 06 Vendor Deep Dive 07 Contacts Capgemini Invent 2020. All rights reserved | 2
The aim of this study is to provide insights on the market trends, cloud adoption and vendors for HCM Cloud Context - Background, Scope, Objective and Approach BACKGROUND OBJECTIVE Capgemini Invent NL has developed a Human Capital Provide a detailed overview of the HCM Cloud market including Management (HCM) Cloud Watch to understand its global HR key market trends and overall market growth market, level of SaaS adoption, emerging technologies and key Provide information on the leading HR Cloud solution providers digital initiatives within the HCM Cloud across the globe Capgemini Invent India is collaborating with Capgemini Invent NL in Identify leading players across HRM Cloud functionalities understanding the current market trends of HCM Cloud and identifying the key vendors providing HCM solutions SCOPE OUTCOMES Geographic Scope: Europe Overview of the latest Cloud HCM trends Study focuses on: Major vendors in HCM Cloud market and their profiles • Overview of various HCM trends Assessment of the vendors on SaaS and mobile • Detailed analysis on HCM Cloud vendors in the market functionalities Vendor profiles: • Vendor profiles of leading players in HRM Cloud functionalities Sources: Capgemini Invent Analysis Capgemini Invent 2020. All rights reserved | 3
TABLE OF CONTENTS 01 Context 02 Executive Summary 03 HCM Cloud Solution Feature Overview 04 Market Trends 05 Vendor Landscape 06 Vendor Deep Dive 07 Contacts Capgemini Invent 2020. All rights reserved | 4
Companies are leveraging HCM and its features via deploying SaaS based Cloud, and using AI and analytics Executive Summary HCM Cloud Overview HCM Cloud Solution Feature Overview Workforce Recruitment and Performance and Learning and Employee HRM Core Functions Compensation HRMS Platform Management Onboarding Talent Development Engagement Global HCM Software Market Key Market Trends Key factor driving the growth of global human capital management (HCM) software market is growth in industrialization thereby requiring human Artificial Intelligence $15 Bn $29 Bn resource management using the IT, digital platforms & digitalization AI enables quick extraction of employee data and CAGR – 5% AI, ML, Block chain, Cloud based software are being used for the daily information when they start working new employer 2018 2025 accessing of human behavior HCM Software Deployment, % Share (2018) SaaS will be the dominant HCM deployment model for large organizations in Gamification 46% Saas North America, moving to more than 60% by 2020 Gamification uses gaming techniques to create digital On Premise On-premises-based HCM software will still account for about two-thirds of employee experience in their regular tasks 54% the market in emerging markets through 2020 Key HCM Vendors Employee Experience Enhancement of Employee Experience by leveraging digital tools to help employees manage their careers and engagement Sources: Capgemini Invent Analysis Capgemini Invent 2020. All rights reserved | 5
TABLE OF CONTENTS 01 Context 02 Executive Summary 03 HCM Cloud Solution Feature Overview 04 Market Trends 05 Vendor Landscape 06 Vendor Deep Dive 07 Contacts Capgemini Invent 2020. All rights reserved | 6
We have assessed the vendors using categorization of HCM features HCM Cloud Solution Feature Overview HRM Core Workforce Recruitment and Performance and Learning and Employee Compensation HRMS Platform Functions Management Onboarding Talent Development Engagement Employee Base Salary Workforce Performance Competency Engagement People Workforce Planning Records Administration Appraisals Assessment Measurement Analytics Scheduling Surveys Bonus Requisitions Goal Learning Payroll Programs Management Content Rewards & Integration Time Reporting Creation & Recognition Recruitment Curation Benefits Continuous Marketing Performance & Administration Commissions Case Process Flow & Enrollment Attendance Coaching Informal & Microlearning Management Job Stock and Distribution Content Salary & Wage Career Long-term Learning Employee Management/ Structures Paid Time Off Advancement Incentives Course Communication Document Career Website Administration Management Jobs & Retirement Positions Absence and Savings Succession Wellness Management Plans Planning Mentoring Programs Security Talent Pools Compliance Productivity Attrition & Digital Reporting Market Pricing Applicant Retention Professional Social Analysis Employee Collaboration Tracking Analysis Certification Experience Organization Labor Cost Pay Equity Diversity & Talent Review Directory Distribution Analysis Compliance Onboarding Sources: The Forrester Wave: SaaS Human Resource Management Systems, Q3 2017 Capgemini Invent 2020. All rights reserved | 7
RPA and AI are being used by companies for handling highly repetitive and data centric tasks 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform HRM Core Functions Market Trends Vendors are adopting Artificial Intelligence and RPA solutions to manage employee database and to reduce operational costs HRM Core Functions Artificial Intelligence Robotics Process Automation Description Description Jobs & Artificial intelligence tools can enable the quick and easy Robotics Process Automation (RPA) automates time Positions extraction of data, information and details that employees consuming tasks such as creating employee record, would have previously had to input (sometimes multiple collating employee documentation etc. Employee times) as they start working with a new employer It saves time and enables HR to focus on key HR functions Records Vendor Example Vendor Example Compliance Microsoft’s Project Cortex connects content in Microsoft 365 Fidel’s RPA solution for HR & Recruitment assists recruiters Reporting and external content and enables employees to manage in managing the daily chores efficiently information and streamline processes with advanced The RPA solution helps organization to cut down on their security, compliance and automated workflow administration and operational costs significantly Payroll Vendor Landscape Organization Directory Benefits Administration & Enrollment Salary & Wage Structures Mobile App Strength of the feature in SaaS and Mobile Sources: TalentLyft; SME Networks; Fidel; CIO Economic Times Capgemini Invent 2020. All rights reserved | 8
Chatbot along with human interaction and mobile technologies are in trend for workforce management 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform Workforce Management Market Trends Human+bots management which is blended workforce management and Mobile technology allow companies to manage its staff Workforce Humans+Bots - Blended Management Mobile Technology Workforce Management Description Description Workforce Newest skill in trend is knowing how to orient, develop, Companies are using mobile punch option, facial recognition Scheduling engage, and work side by side with a bot software and kiosk app for capturing the attendance Human and bot teams will work together and, in many This kind of solution is best suited for people on the move cases, outdo either humans or bots working on their own Time Reporting Vendor Example Vendor Example Kronos: Employee scheduling, Time and attendance, Jibble Tech: Biometric Attendance with Facial Recognition Paid Time Off Absent management BioEnable: Face Recognition Attendance System NICE IEX: Multi skill simulation and policy management BigChange provides a pioneering mobile workforce Eco time: Labor costing and Leave management management system called JobWatch Productivity Analysis Vendor Landscape Labor Cost Distribution Absence Management Attendance Strength of the feature in SaaS and Mobile Sources: Kronos; Jibble; BioEnable; Forbes; Bigchange.com; Kronos Capgemini Invent 2020. All rights reserved | 9
AI technologies assist employees to understand the benefits they are entitled for and leverage it 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform Compensation Market Trends Artificial Intelligence and Online Reward Portal enable companies to personalize employee benefits and educate them Compensation Artificial Intelligence Online Rewards Portal Description Description Base Salary AI tools help employees to sort through benefit options and The online reward portal help companies to ensure that each Administration pick the best one employee and recruit understands and updates themselves It enables employees to get educated with the benefits and with their current and future employment deals Commissions assist them to choose right options This also helps HR in compliance management of employees Vendor Example Vendor Example Retirement BMW launched several employee benefits programs last Willis Towers Watson’s Total Rewards Portal Software helps and Savings year and to educate its employees BMW took help of Sofia, employees to see and understand their entitlements from Plans AI-enabled personalized benefits assistant that can respond the organization as part of the employment deal to workers’ benefits questions through chat and voice Pay Equity Analysis Vendor Landscape Bonus Programs Stock and Long-term Incentives Market Pricing Strength of the feature in SaaS and Mobile Sources: Business News Daily; Beqom Website; Beqom site; Willis Tower Watson; HR Executive.com Capgemini Invent 2020. All rights reserved | 10
Machine Learning and AI assist companies to recruit and onboard the right candidates seamlessly 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform Recruitment and Onboarding Market Trends Machine learning and AI helps in screening and shortlisting right skills from job portals and analyze and scan right candidates from their video Recruitment and Onboarding Machine Learning AI System based Recruitment Description Description Requisitions The AI system scans videos to analyze candidates facial Machine learning technologies helps recruiters in screening expressions, body language and word choice and checks resume or job portals, skill match and shortlisting of right them against traits that are considered to be predictive of Job candidates for the right job Distribution job success Vendor Example Vendor Example Talent Pools IBM Watson Recruitment (IWR), uses ML to find information Unilever is using AI software from HireVue, it scans the about the job market and past experiences of candidates language that candidates use for example active or passive Diversity & This helped IBM predict time to fill and identify the phrases, tone of voice and speed of delivery along with Compliance candidates most likely to be successful facial expressions Workforce Planning Vendor Landscape Recruitment Marketing Career Website Applicant Tracking Onboarding Strength of the feature in SaaS and Mobile Sources: IBM; CMS Wire; The Guardian Capgemini Invent 2020. All rights reserved | 11
Predictive analytics aids companies to manage talent and AI allows employees to explore career growth options 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform Performance and Talent Market Trends AI based mobility platform enable employees to explore and advance their career through multiple available prospects Performance and Data Science Led Predictive AI based Mobility Talent Analytics Platform Description Description Performance Data science-led predictive analytics can offer a host of AI based mobility platform allows employees to build a profile, Appraisals benefits for HR managers including predicting when see the range of jobs that fit their desires, explore new career employees are preparing to leave their jobs, thereby possibilities, and even connect to a mentor to prepare for a Succession allowing the employer to quickly intervene future role Planning Vendor Example Vendor Example Goal Hewlett-Packard (HP) was facing high level of employee IBM’s Watson Career Coach provides employees with career Management turnover, therefore they combined previous data and guidance, helps them seek new opportunities and enables attempted to predict who would leave the organization and them to pursue continued learning Attrition & saved an approx. $300 Mn by applying predictive analytics Retention Analysis Vendor Landscape Continuous Performance & Coaching Talent Review Career Advancement Strength of the feature in SaaS and Mobile Sources: Cio Economic Times; Forbes; Selecthub Capgemini Invent 2020. All rights reserved | 12
Gamification and VR are being used by companies for training their employees in more engaging manner 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform Learning and Development Market Trends Companies are moving towards Virtual Reality and Gamification for training employees in a digital, engaging and practical method Learning and Development Gamification Virtual Reality (VR) Description Description Competency Gamification uses gaming techniques to create digital Through VR solutions companies can offer a range of training Assessment employee experience in their regular tasks as diverse as safety training, customer service training, It keeps the employees engaged through interactive leadership development, and re-inventing the employee Learning Content screens and thereby motivate them to work proactively experience etc. Creation & Vendor Example Vendor Example Curation Indusgeeks’ INIT (Interactive Narrative Immersive Verizon has been using VR to train store managers and Informal & Training) Platform creates a customized gamification their team on how to handle a potential store robbery Microlearning solution which transforms the traditional eLearning content, VR allows store managers to practice the nuances of proper thereby resulting in improved retention response in a potential robbery Learning Course Administration Vendor Landscape Mentoring Professional Certification Strength of the feature in SaaS and Mobile Sources: Mobile Platform; Hysan; AI & LXP; Harbinger; Forbes; Empxtrack Capgemini Invent 2020. All rights reserved | 13
Wearable technology keeps a track on employee's health and chatbots resolve employee queries in real time 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform Employee Engagement Market Trends Companies are using gamification techniques and wellness platforms to improve employee work performance Employee Wearable Engagement AI Backed Chatbots Technology Description Description Engagement AI-backed chatbots enable both the employee and HR to Wearable technologies work as a health monitors which Measurement keep the engagement conversation going Surveys tracks individual employee’s health such as sleep cycles etc. It allows HR practitioners to understand sentiment so they They can also detect major health concerns, like if an can address potential roadblocks to act and boost employee’s blood pressure increases dramatically Rewards & engagement and reduce turnover Recognition Vendor Example Vendor Example Hitachi uses wearable devices within the workplace Espressive’s solution is specifically designed to help Case They found that employees who experienced more variation Management employees get answers to their most common questions in physical activity, as opposed to repetitive tasks, were (PTO, benefits, etc), without burdening the HR team happier and more productive Employee Communication Vendor Landscape Wellness Programs Digital Employee Experience Strength of the feature in SaaS and Mobile Sources: Safe Guard Global; Forbes; CMS Wire; Select Software Capgemini Invent 2020. All rights reserved | 14
Employee Experience can be improved by providing Digital Tools to employees for managing their careers 1. HRM Core Functions 2. Workforce Management 3. Compensation 4. Recruitment and Onboarding 5. Performance and Talent 6. Learning and Development 7. Employee Engagement 8. HRMS Platform HRMS Platform Market Trends Companies are leveraging Digital tools and people analytics tool to perform seamless HR operations HRMS Platform People Analytics Employee Experience Description Description People People Analytics enable organizations to perform behavioral Analytics Employee Experience can be enhanced by digitization of HR assessments to discover candidates’ critical skills services such as providing digital tools to help employees HR team needs to understand key talent management manage their careers and engagement Integration measures and consult stakeholders using data science Vendor Example Vendor Example IBM’s “Predictive Attrition Program” developed with Watson Process Flow Servicenow’s Cloud based Now platform possesses features can predict employee flight risk with 95% accuracy such as automated workflow, service portal, virtual agent IBM built the algorithm using sources like recruitment data, and performance analytics Content tenure, and employee sentiment, measured via Social Pulse Management/ Document Management Vendor Landscape Security Social Collaboration Strength of the feature in SaaS and Mobile Sources: Business World; IBM; Safe Guard Global; Rise People; HR Technologist; Businessworld.in Capgemini Invent 2020. All rights reserved | 15
TABLE OF CONTENTS 01 Context 02 Executive Summary 03 HCM Cloud Solution Feature Overview 04 Market Trends 05 Vendor Landscape 06 Vendor Deep Dive 07 Contacts Capgemini Invent 2020. All rights reserved | 16
AI, machine learning and HR analytics are the key trends within HCM Cloud Market HCM Cloud Market Trend Highlights - 2020 Key Trends Self- service portals AI and Machine and experience layers Learning in Cloud HR Analytics Key Trends in HCM Cloud based Digital Cloud applications Expansion of HCM AI-dependent data and risk cloud-based tools management for cloud- hosted systems Sources: Olxpeople; Hrtechnologist; Pockethrms; Oracle; PRNnewswire; Prweb; Globenewswire; Businesswire; HR Technologist; Sumtotal Capgemini Invent 2020. All rights reserved | 17
Emerging tech like AI, VR, Chatbots are significantly transforming HR processes Emerging Technologies and Innovations in HR Continued growth of AI Chatbots The application of AI in HR is growing rapidly on account of Chatbots are expected to be on rise on account of surge in surge in the adoption of HCM systems in organizations self-service portals AI is significantly being leveraged for the hiring process Chatbots can help quickly resolve issues and provide helping to identify top candidates for a job opening answers instead of waiting for a phone call or email Expansion of Cloud-based HCM tools Virtual and remote work technologies Many companies are expected to shift to newer Cloud-based Many companies are expanding the use of remote workers HCM systems on account of upgrade in IT infrastructure which is expected to increase the investment in technologies Switching to a Cloud-based system will likely continue to be Video conferencing and use of other collaboration tools are a top choice and priority for 2020 likely to be on rise on account of remote working Employee self-service portals Increased use of Virtual Reality Self-service portals have become popular among employees VR would help the candidate to get a better understanding as three fourths of full-time workers in US expect employers of the organization and its work environment to provide high levels of self-service for HR tasks An AR/VR-based application can scan the candidate’s face Helps save money and offers a better experience and show all key details during an interview process Use of specialized HR tools New wellness technologies Many organizations are opting to purchase separate systems Most employees expect their companies to offer wellness for various HR functions rather than legacy HCM systems benefits There is expected to be newer innovations in software and Newer apps to help with fitness goals and virtual access to frequent releases for modern mobile-driven workplace mental health professionals are set to be in trend Sources: Talentlyft; TCS Capgemini Invent 2020. All rights reserved | 18
The growth in HCM market is driven by increased usage of digital platforms and tools by employees HCM Market Overview Global HCM Software Market Landscape Global HCM Software Market The key factor driving the growth of global human capital management (HCM) software market is increasing industrialization leading to surge in manpower that requires for human resource management using the IT, digital platforms & digitalization $15 Bn $29 Bn Technologies like AI, ML, Block chain, Cloud based software are being used for the daily accessing of human behavior North America is expected to dominate the global HCM software market on account of growth in IT services with technological advancement CAGR – 10.1% using IoT, Cloud based platforms, AI followed by Europe 2018 2025 Europe is expected to witness a significant growth due to rising adoption of advanced technology and consumer spending Significant number of companies are using best of breed solutions, on account of improved employee experience forming better interaction with employees as well as better analytics or automation features as compared to the big vendors Future State of HCM Landscape Strategic HCM Investments Tactical Investment in HCM Localized HCM Scalable and Strategic Automated Administration Minimal Automation to Technology investments investments of HR processes manage HR processes IHRSD* solutions centralize common Cloud HCM Suite supports core HR Light Cloud HCM Suite covering Payroll/ benefits may be outsourced most essential functionality or administrative HR processes and most TM suites RPA is utilized to drive efficiency in continued use of on-premises HRMS BI solution aggregates data from AI applied in many functions to HR service delivery and outsourcing Continued mix of payroll outsourcing multiple systems for consolidated augment decision support and UX Administration focused worker and and internally hosted payroll reporting and analytics Enterprise WFM solutions meet manager self-service, often mobile Stand-alone basic WFM, together Business units and local entities industry requirements and include enabled with scheduling for some industries select TM, payroll and WFM tools labor analytics Investments in specialist TM Light Cloud core HR app for single HR shared service deployments are solutions where HCM suite has gaps version of truth across entities, common and enabled by IHRSD sometimes as part of global TM suite solutions Sources: Marketwatch; Gartner (2019-2021 Strategic Roadmap for HCM Technology Investments) Capgemini Invent 2020. All rights reserved | 19 Notes: HRIT (HR information technology); IHRSD ( Integrated HR service delivery); WFM (Workforce management); TM (Talent management)
AI technologies are significantly being deployed in areas of remote working, decision making and training HCM Market Overview Global HCM Software Deployment Market Landscape Forecasted Percentage Share of HCM Software Market Trends Deployment Market, (2015-2020) AI and Machine Learning based application AI-based recruiting to focus on eliminating bias to build inclusivity 100% 100% 100% 100% 100% 100% Online on-demand AI-enabled platforms to enable remote work Improved and agile processes driven by AI to elevate the employee experience 50% 46% 42% 38% 60% 55% Continuous performance management with AI AI-powered on-the-job simulated training tailored to specific needs 50% 54% 58% 62% 40% 45% Human and AI collaboration for better decisions AI-dependent data and risk management for Cloud-hosted systems 2015 2016 2017 2018 2019E 2020E AI to be used to create a culture of wellbeing and happiness at work Saas On-premise Machine learning tools to help HR and management personnel in applicant tracking and assessment Machine Learning based individual skills management and performance development SaaS will be the dominant mode of HCM software delivery platform for large organizations in North America, moving from 45% of the market in 2016 to more than 60% by 2020 On-premises-based HCM software will still account for about Robotics and autonomous agents two-thirds of the market in emerging markets through 2020 The quality of conversational chatbots are predicted to get better at mimicking actual By 2020, on-premises HCM systems will have an average life human conversation span of 7-9 years and will be replaced by or upgraded to new technology Chatbots are offering employees instant access to the right data, making HCM portals systems productive enhancing and self-service portals Technology that will replace on-premises are in-memory technology, big data, IoT capabilities, machine learning Automated video-based interviewing is another area redefining the traditional talent and artificial intelligence pool management functionalities Sources: Hrtechnologist; Netscribes; Emerj Capgemini Invent 2020. All rights reserved | 20
There is a continued increase in adoption across each category by size, in all HR technology category Trends in HCM Cloud Adoption Processes HCM Cloud Adoption Processes (n = 1,892 respondents) Microsoft Excel 98% Microsoft Excel remains the most popular Embedded Core HR 63% tool for BI, with over 98% of organizations Embedded TM 56% BI/ HR using it for HR efforts Platform BI Solutions 72% Visualization Tools 77% Analytics Large organizations prefer to use BI Data Warehouse 56% Visualization Tools for their HR intelligence Embedded WFM 37% Statistical Tools 37% HR Workforce Analytics 30% Data Lakes 24% LinkedIn 83% For many organizations, solutions such as LinkedIn and Collaboration tools have Facebook 62% Social become almost standard enterprise Collaboration Tools 84% Application technologies Twitter 50% for HR Large organizations are more likely to use formal Collaboration and Corporate Corporate Network 61% Networking applications Youtube 47% Employee Referral Application 58% For Candidate Management, Employer Branding Technology 45% organizations mostly rely on their Exploring primary Recruiting application, used for Talent Pool Management 42% new Talent Employee Referral Management and Social Searching/ Matching 35% Acquisition Behaviour Assessment 33% Employer Branding activities Marketing Campaign Management 29% Tools LinkedIn is the preferred application for Video Screening/Interviews 29% Social Searching/Matching Game Based Recruiting 6% Sources: Sierra-Cedar 2019–2020 HR Systems Survey Results Capgemini Invent 2020. All rights reserved | 21
Gen Z being from the digital background prefers face-to- face interaction over electronic tools Employment Conditions for NextGen Workforce Face-to-Face Gamified Mentorship Digital Natives Individualistic and Hybrid Work Interaction Incentive Systems Gen Z would be on Gen Z, millennial Independent Model Most Gen Z* prefer Gen Z being a constant lookout for and digital native To retain gen Z, Gen Z are interested face-to-face gamer generation, opportunities to employees are employers should in a hybrid approach interactions will always look for develop their skills internet savvy and reconsider employee to work i.e. time As per a study report a challenging or acquire new ones well accustomed to evaluation system split between home 53% of Gen Z-ers business Therefore, employers messaging to accommodate the and workplace prefer in-person environment and needs to think about platforms formal, annual communication over more gamified mentorship which appraisal one-on- will always come Employers needs to electronic tools incentive system one sessions with before financial create initiatives ongoing, informal reward for a gen Z that leverage the reviews employee collective digital SuccessFactors, an intelligence of Gen Z HRM system rolled graduates and their out feedback from natural attraction employers to for the digital realm engage with Millennial and Gen Z workers Sources: Risepeople; Selecthub; Hrtechnologist *Generation Z (Gen Z) Capgemini Invent 2020. All rights reserved | 22
TABLE OF CONTENTS 01 Context 02 Executive Summary 03 HCM Cloud Solution Feature Overview 04 Market Trends 05 Vendor Landscape 06 Vendor Deep Dive 07 Contacts Capgemini Invent 2020. All rights reserved | 23
Oracle, SAP SuccessFactors and Workday provide almost all HR functionalities in the Cloud Summary of HR Solution Vendor profiles Applications Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Vendors Functions Management and Talent Development Engagement Platform Onboarding Full Functionality Medium Functionality 0 Solutions Sources: Capgemini Invent Analysis Capgemini Invent 2020. All rights reserved | 24
TABLE OF CONTENTS 01 Context 02 Executive Summary 03 HCM Cloud Solution Feature Overview 04 Market Trends 05 Vendor Landscape 06 Vendor Deep Dive 07 Contacts Capgemini Invent 2020. All rights reserved | 25
We have rated the vendors using categorization of HCM features Vendor Deep Dive - HCM Cloud Solution Feature Overview HRM Core Workforce Recruitment and Performance and Learning and Employee Compensation HRMS Platform Functions Management Onboarding Talent Development Engagement Employee Workforce Base Salary Workforce Performance Competency Engagement People 1 1 1 Planning 1 1 1 Records 1 Scheduling & Administration Appraisals Assessment 1 Measurement Analytics Rostering Surveys Bonus 2 Requisitions Goal Learning 2 Payroll 2 Programs 2 Management Content Rewards & 2 Integration 2 Time Reporting 2 2 Creation & Recognition Recruitment Curation Benefits 3 Continuous Marketing 3 Performance & 3 Administration 3 Commissions Case 3 Process Flow & Enrollment 3 Attendance Coaching Informal & 3 3 Microlearning Management Job 4 Distribution Salary & Wage Career Content Stock and 4 4 4 Learning Employee Management/ Structures 4 Paid Time Off Long-term Advancement 4 4 4 Course Communication Document Incentives Career Website 5 Administration Management Jobs & Retirement 5 Positions Absence 5 and Savings Succession Wellness 5 5 5 Management Plans Planning 5 Mentoring Programs 5 Security 6 Talent Pools Compliance Productivity Attrition & Digital 6 6 6 Market Pricing Applicant Professional Social Reporting Analysis 6 Retention 6 6 Employee 6 7 Tracking Certification Collaboration Analysis Experience Organization Labor Cost Pay Equity Diversity & 7 7 7 8 7 Talent Review Directory Distribution Analysis Compliance 9 Onboarding Sources: The Forrester Wave: SaaS Human Resource Management Systems, Q3 2017 Capgemini Invent 2020. All rights reserved | 26
Oracle Cloud HCM provides solution from hire to retire including talent and workforce management Oracle Profile (1/2) Company Overview Company Oracle Corporation Oracle Cloud HCM is a solution connecting every human resource process from hire to retire including global HR, talent management, workforce management, and payroll HCM Solutions Consulting, Implementation, maintenance and Services support It’s also the most connected solution across the enterprise, with one Cloud unifying HCM across finance, supply chain, and customer experience Sector Focus Diversified customer segment Annual Revenue $39.5 Bn (FY19) Employees 1,36,000 (2019) Implemented markets Security systems Integration Systems & Platforms Oracle has provided HRMS solutions to 14,000 The security approach consists of: Oracle delivers a mature integration platform customers in over 140 countries whereof: Role-based access control that integrates HCM Cloud and ERP, future proof • 8 of the top 10 Fortune 500 companies Function security integration of mobile connectivity, IoT and • 20 of the top 40 innovative companies Data security human based processes Access provisioning and identity management It also integrates with third-party applications Segregation of duty policies and services Partner Ecosystem Key Clients Cloud Implementors Cloud Resellers Sources: Oracle Fusion HCM; Oracle Fact Sheet; Oracle Website; Partner-finder Capgemini Invent 2020. All rights reserved | 27
Oracle is exploring capabilities to leverage connected data enabling multi-device experience Oracle Profile (2/2) Future Strategies Strengths Forrester Wave Cloud Human Capital Management Suites, Q2 2020 Oracle is exploring capabilities of leveraging connected data to named Oracle Cloud HCM as a leader provide consistent experience across devices to enables one source Oracle’s Self- Service HR for E-Business Suite App offers HR for HR data to improve decision-making information related to approvals, taxation and benefits to managers Oracle is investing in tech like chatbots, AI, Machine Learning, IOT, as well as employees Blockchain & voice control for HCM Pricing Models Challenges The increasing availability of Cloud and SaaS delivery models The Global HR module subscription is priced at per user per month offered by Oracle and its competitors may unfavorably impact the basis pricing of the Cloud and license offerings SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 x SaaS Sources: Oracle Website; Oracle – Press Releases; HR Lab; Oracle Annual Report; Betterbuys; Capgemini; HCM- Cloud Service; Oracle- Recruitment; Oracle-Integration Capgemini Invent 2020. All rights reserved | 28
SAP SuccessFactors provides a complete suite of HXM solutions which covers entire HR spectrum SAP Profile (1/2) Company Overview Company SuccessFactors Inc. – A SAP Company SAP SuccessFactors is SaaS solution that has recently updated its HCM Suite to HXM (Human Experience Management) Suite with a focus towards people – centric HCM Solutions SaaS Provider, Implementation, Training and support experiences Services The SAP SuccessFactors HXM Suite is a Cloud-based human resource management Sector Focus All sectors software system which is organized into 4 categories such as employee experience management, Core HR and Payroll, Talent Management and HR Analytics and Annual Revenue $27,533 Mn (2019) Workforce Planning SAP SuccessFactors has more than 6,800 customers on its Human Experience Employees 100,330 (2019) Management (HXM) Suite Implemented markets Security systems Integration Systems & Platforms SAP Success Factors has presence across North Security is incorporated from the bottom up SAP provides capability for integrating SAP America, Latin America, Europe, Asia Pacific and across all phases of software development cycle SuccessFactors to SAP Cloud, on-premise MENA (Middle East and North Africa) SAP SuccessFactors provides added physical, solutions and leading third-party HR services Payroll is natively supported for about 46 network and application security Provides integration with custom business apps countries and real time integration on SAP Cloud platform Used by more than 4,800 customers and more Master data integration across SAP S/4HANA and than 40 million users in 177 countries SAP SuccessFactors software Partner Ecosystem Key Clients Sales Partners Software Partners Implement service and support Partners Sources: SuccessfactorHXM; SAP Clients ;Annual Report 2019; Statista- Number of Employees; SAP Success Factor; SAP-Integration; SAP-Security; Capgemini Invent 2020. All rights reserved | 29
HXM suite posses AI based recruiting capabilities and job matching through its technology partners SAP Profile (2/2) Future Strategies Strengths The recent introduction of SAP’s HXM (Human experience Updated HCM suite to HXM to focus on employee experience management solutions) focuses on employee experiences to get management tools by SAP Qualtrics and AI-based user experiences better business results Delivers AI-assisted recruiting capabilities such as complex HXM enhances experiences by leveraging technologies such as interview scheduling and applicant-job matching via partners machine Learning based recommendations as well as embedding a SAP SuccessFactors App offers view on employee profile, chat function organization and time off balance Pricing Models Challenges Offers consumption-based model in certain regions wherein one pays each month only for the eligible services actually used In respect to technical product capabilities, SAP has issues SAP Pay-As-You-Go is currently available by invitation only associated with disparate acquired architectures, such as complex Subscription based pricing model available with 9 different pricing implementations, release absorption and reporting tiers based on no. of users with one-year term subscription The core functions in the suite were heavily under construction last Contract duration is 3 or 5 years and sales partners can sell year and are only now stabilizing and becoming more mature subscriptions SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 x x x SaaS Sources: SuccessFactors Website; HR-Lab; LinkedIn-Pricing; FutureSAP; SAP- Saving Plans; SAP- Compensation; SAP- Pay Equity; SAP- Recruitment; Forrester Capgemini Invent 2020. All rights reserved | 30
Workday has a large client base with companies like Target, Hewlett Packard and Sanofi Workday Profile (1/2) Company Overview Company Workday Workday is a leader in enterprise-class, Software-as-a-Service (SaaS) solutions for managing global businesses, combining a lower cost of ownership HCM Solutions SaaS provider, implementation training and support Workday provides enterprise Cloud applications for finance and human resources Services worldwide Sector Focus HCM and Financial Management applications Workday HCM’s key product areas include HR Management, Organization Management, Business Process Management, Reporting and Analytics, Absence Annual Revenue $3.6 Bn (31 Jan, 2020) Management, Compensation Management and Talent Optimization Employees 10,500 (2019) Implemented markets Security systems Integration Systems & Platforms Worldwide 2200 organizations selected Workday The security approach consists of Partners with companies to integrate its product, HCM Security the process are - Workday HCM Suite is operating in 200+ • Organizational Security • Project Plan Review countries and it is available in 30 languages • Architectural Security • Prototype Configuration Review / Integration • Medium sized businesses as well as top 50 • Operational Security • Final Configuration Review enterprises selected Workday Privacy Workday’s open standard based APIs provides • Robust Privacy Program 100+ SOAP* or REST* based web service as • Global Privacy Standards well as integration with middleware platforms Partner Ecosystem Key Clients Service Partners Software Partners Global Payroll Partners Sources: Workday Newsroom; WorkdayDatasheet; Globenewswire; Macrotrends Capgemini Invent 2020. All rights reserved | 31 Notes: SOAP* (Simple Object Access Protocol); REST* (Representational State Transfer)
Workday’s Skill Cloud offers strong skills management features Workday Profile (2/2) Future Strategies Strengths Workday is targeting to expand in global market especially in EMEA Workday App provides features such as administrative task and APAC regions management and interactive reports and dashboards For sales growth Workday will open offices in South Africa and Italy It’s uptime SLA* performance along with zero exclusions is 99.89% Workday is focusing on technologies like conversational computing, Workday offers Skills Cloud for skills management with skills count analytics and AI and an ontology of more than 55,000 skills giving the company an Focused on people experience by introducing new features of edge over its competitors in terms of recruiting, learning, Workday Help and Workday Journeys workforce analytics and workforce planning Pricing Models Challenges Workday’s provide two options for payment: High competition from SAP/Success Factors and Oracle, they have One-time payment established on-premise client base Quarter Based Workday’s strategy is focused on direct sale only and it has lack of Workday charges based on the number of modules and users on established reseller program the platform Workday’s pricing is higher than the competitors Offers Workday Payroll Connector to integrate bi-directionally to Payroll capabilities is lacking in supporting global payroll natively any third-party payroll application SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 x x x SaaS Sources: Nelson Hall Report; Finances Online; Hcmtechnologyreport; Reviews; Forrester; Thirdpartypayroll Capgemini Invent 2020. All rights reserved | 32 *Note: SLA-Service Level Agreement
Cornerstone OnDemand offers easy plug and play applications with pre-built integrations Cornerstone OnDemand (CSOD) Profile (1/2) Company Overview Company Cornerstone OnDemand Cornerstone OnDemand offers Cloud-based SaaS solution; it offers four types of HCM suites such as recruiting suite, learning suite, performance suite and HR HCM Solutions Recruiting, learning, performance and HR administration suite Services administration suites The company offers implementation, integration and other consulting services to its users Sector Focus Diversified customer segment The company has offices in the US, the UK, France, Germany, Spain, Italy, the Annual Revenue $150.1 Mn (FY20-Q1) Netherlands, Denmark, Belgium & Luxembourg, Norway, Sweden, Finland, Switzerland, Israel, South Africa, Australia & New Zealand, India, Japan, Hong Kong, Employees Approx. 3000 (2020) Singapore, Mexico, Brazil and Argentina Implemented markets Security systems Integration Systems & Platforms Cornerstone has presence in 192 countries The security approach consists of Cornerstone OnDemand easily plug-and-play More than 70 million users in 180 countries and Comprehensive Security and Compliance with several pre-built integrations products in over 40 languages Advanced Data Protection and Data Privacy Global IT Security, Privacy & Compliance Team, Cross Border Partner Ecosystem Key Clients Sources: Cornerstone company website; Cornerstone Partners; Cornerstone Clients Capgemini Invent 2020. All rights reserved | 33
CSOD offers smooth integration landscape and complies to GDPR standards Cornerstone OnDemand (CSOD) Profile (2/2) Future Strategies Strengths Cornerstone Learn App provides learning, courses, and new content CSOD is focusing on technology by leveraging more machine based on one's interests, role and career learning, AI and enhanced analytics for better UX* It provides pure-play Cloud on a single database and single code CSOD is investing on innovation and enhanced features in its line with no bolt-on acquisitions platform modules It offers smooth UX and simple integration landscape and follows GDPR* standards Pricing Models Challenges High competition from SAP/Success Factors and Oracle since they have established on-premise client base Brand awareness for Core HR and HCM is less as compared to their Cornerstone OnDemand’s pricing is based on pay per user/month learning and talent management capabilities Lack of core module and capabilities which is mostly preferred by clients from Cloud HR solutions SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 x x x x x x x x x x x x SaaS Sources: NelsonHall NEAT Report; Finances online Capgemini Invent 2020. All rights reserved | 34 *Note: GDPR-General Data Protection Regulation; UX-User Experience; EU-European Union
PeopleFluent provides an integrated talent acquisition, management and learning solution PeopleFluent Profile (1/2) Company Overview Company PeopleFluent Inc. PeopleFluent is the provider of talent acquisition, talent management and workforce compliance services HCM Solutions Professional services, Customer community, Services Education, Support, Talent management essentials The company integrates pervasive video, strategic analytics and collaborative social technologies into a complete suite of talent management applications to address Sector Focus Healthcare, Manufacturing, Financial services, Retail productivity loss and diminished financial results They provide features such as, workforce planning and analytics, enterprise Annual Revenue $210 Mn (Q2-20) collaboration, compliance and diversity management, social engagement, contingent labor management/vendor management, employee and manager communications Employees 1000 Implemented markets Security systems Integration Systems & Platforms More than 5,100 enterprises and organizations PeopleFluent’s software has ISO 27001 Unifies all the talent acquisition and talent from all over the world trust PeopleFluent to certification management processes into a single, help boost employee engagement and API available collaborative workspace performance to drive better business results Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based It is used by more than 5 million users in 214 countries and territories around the world Partner Ecosystem Key Clients Reseller Partners Group Partner Companies Sources: In-Notes Capgemini Invent 2020. All rights reserved | 35
PeopleFluent can be integrated with core HCM system through its Data Integration managed service solution PeopleFluent Profile (2/2) Future Strategies Strengths Expert implementation and onboarding with a team of consultants and certified project managers with average 8 years of experience The company is investing in enhancing their technological solutions Dedicated account management and global customer support such as video, social collaboration, and employee communication PeopleFluent can be integrated with many core HR/HCM system technologies within their solutions through its Data Integration managed service solution Launched a new enterprise recruiting solution with integrated texting, video, social and mobile app collaboration Pricing Models Challenges The system is not very intuitive, and one needs to attend training PeopleFluent offers subscription-based pricing or Quote-based plan to learn now to navigate for its talent management solutions Involves multiple steps for posting a position SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 X x x X x x x x x SaaS Sources: Financesonline; Company Website; Appsruntheworld Capgemini Invent 2020. All rights reserved | 36
TalentSoft offers comprehensive HR and digital learning solution for organizations of all sizes TalentSoft Profile (1/2) Company Overview Company TalentSoft SA Talentsoft is a Cloud-based talent management software vendor and offers solutions such as recruitment software, my Talentsoft, performance and competencies, HCM Solutions Cloud-based talent management and learning learning, talent review, compensation, workforce planning, hub, analytics and hello Services software provider talent Sector Focus Diversified customer segment The company also offers services such as professional, technology, TalentSoft academy, client support and community Annual Revenue €52 Mn (2019) The company has offices in France, the UK, Denmark, Switzerland, Italy, Norway, the Netherlands, Sweden & Norway, Germany, Belgium & Luxembourg, Spain, etc. Employees 600 Implemented markets Security systems Integration Systems & Platforms Talent application is implemented throughout TalentSoft’s software and related services are Integrates talent management and talent markets of 130 countries and in 27 languages ISO 27001:2013 certified acquisition under one single window Implemented in Europe, Canada, Brazil, the US, Highly secured data centres, privacy by design It is a flexible solution that adapts to regional Algeria, Morocco, Mauritius, Senegal, and by default and global best practices while complying with Singapore, Mexico, Colombia and South Africa European and international regulations 50 new clients in the DACH region and 30 new Talentsoft works with approximately 11 in Benelux region in 2019 integrators Partner Ecosystem Key Clients Consulting firms Integrators Resellers Sources: TalentSoft website; Talentsoft; Integrators Capgemini Invent 2020. All rights reserved | 37
TalentSoft's Cloud technology enables companies to manage their talents intuitively and assures data protection TalentSoft Profile (2/2) Future Strategies Strengths Strong innovation with performance management solutions such as International growth with new operations in Netherlands Continuous Conversation Expanding customer portfolio in France and Canada 90% of its customers are multinational Targets €100 Mn in annual revenue It entered 2018 with a revenue backlog of € 75mn as a result of Investing in HR data management and employee experience existing contracts, and benefits from strong financial stability innovations Selected in the Europe’s Top 50 Most Promising Startups by GP Shift from a SaaS model to an iPaaS* model Bullhound in June 2019 Pricing Models Challenges Software alternatives for the TalentSoft solutions create challenges for the company in the market Talentsoft offers subscription-based pricing for its talent Workday HCM, Cornerstone OnDemand, Oracle HCM Cloud, Moodle, management solutions Avature are some of the rival software for TalentSoft Cloud-based talent management and learning solution SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 x x x x x x x x x x x x x x x x x x x x SaaS Sources: TalentSoft news; PAT Research; Trust Radius; Talentsoft; Gartner; Strategic challenger Capgemini Invent 2020. All rights reserved | 38 Notes: iPaaS* (Integrated Platform as a Service)
Kronos HCM solution provides software tools to deliver HR, payroll, talent, and timekeeping in one system Kronos Profile (1/2) Company Overview Company Kronos Inc. Kronos is a provider of workforce management and human capital management Cloud solutions HCM Solutions Human resources, Consulting and Enterprise Services software's The Workforce Ready suite combines the power of workforce management and human capital management (HCM) in one unified Cloud platform Sector Focus Logistics, Manufacturing, Retail and Hospitality Kronos HCM offers a complete range of HR services such as analytics, talent acquisition, time keeping, accruals, attestation, scheduler, payroll services, etc. Annual Revenue $1433 Mn (2019) Kronos serves medium to large enterprises and small and medium seized businesses Employees 6,000 (2019) Kronos operates from 70 offices from 16 countries around the world Implemented markets Security systems Integration Systems & Platforms Kronos has 40 million people in over 100 Workforce Ready leverages multiple levels of Integrated with Outlook to make communication countries at more than 33,000 organizations backup and failover protection between managers and employees efficient and around the world who rely on Kronos workforce It provides Penetration testing, antivirus & quick solutions every day vulnerability testing is done by third party Kronos provides an enhanced integration with Kronos has more than 4,000 customers on its Kronos technical consultants manage the SAP SuccessFactors that helps simplify complex Workforce Ready HCM suite solution infrastructure, client’s applications and and challenging global (HCM) requirements employee data, to ensure multilayer security Partner Ecosystem Key Clients Service Partners Technology Partners Software Partners Sources: Kronos Website; Business Wire; SAP; Kronos Annual Report; Kronos-Markets; Kronos- Security Notes: Workforce Integration Manager (WIM); Open Learning Services Architecture (OLSA) Capgemini Invent 2020. All rights reserved | 39
Kronos strong workforce management solution and AI enabled capabilities are its strength Kronos Profile (2/2) Future Strategies Strengths Kronos plans to extend its reach in India Kronos offers commanding workforce management and AI-enabled Kronos is focusing on will continue to target middle market clients capabilities (>500 to 15k employees) as its ideal client demographic Kronos Workforce Mobile helps in completion of Workforce Kronos is increasing its focus on providing mobile-first user management tasks and provides view on HR information experience that is device-agnostic, eliminating the need for a New functional module expansions in benefits management, separate mobile application and allowing users to move from learning administration and the continued use of AI and machine mobile phone, to tablet, to desktop with no feature loss learning in WFM Pricing Models and Add-ons Challenges Kronos quotes each job on individual basis depending on the Workforce Ready may not be suitable for organizations with more- software, number of users and number of managers complex Talent Management and analytics requirements No extra charges for assistance in solving issues Customers have shared least satisfaction with workforce analytics, Kronos' AI-engine. AIMEE is built on Google's AI platform and as well as social/collaboration capabilities in Gartner Magic available as an add-on Quadrant Analysis SaaS Solutions Portfolio Recruitment HRM Core Workforce Performance Learning and Employee HRMS Compensation and Functions Management and talent Development Engagement Platform Onboarding 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 x x x x x x x x x x SaaS Sources: Kronos Website; Kronos Annual Report; Kronos- Compensation; Kronos- Talent Pools; Kronos- Security Capgemini Invent 2020. All rights reserved | 40
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