Core HR is the essential bulk of information and processes that pertain to the employees in any organization. Some aspects of core HR include employee personal information, benefits enrollment, and income tax withholding. Any software that helps with storing all employee information in a database, uses employee information to extract reports, and makes it easy to create employee profiles may be considered core HR software.
Asia Pacific (APAC) is expected to grow at the highest CAGR in the core HR software market during the forecast period. The APAC region is an emerging economy, as it is witnessing dynamic changes in the adoption of new technologies. The APAC region comprises emerging economies, such as China, India, Japan, Singapore, Malaysia, and Australia. The APAC region is expected to have a major traction towards core HR software modules, due to the rise in demand for organizing its huge workforce. This region is also facing issues, such as aging population and increasing number of multigenerational workforce, which are required to be managed. Therefore, core HR is becoming the hot topic as employee satisfaction and skill upgradation is important for an organization in the long run.
The consumer goods and retail vertical is expected to grow at the highest CAGR in the core HR software market during the forecast period. This vertical is evolving and rapidly increasing, in terms of technological changes, customer needs, and employment. Various tasks, such as forecasting, budgeting, level of customer satisfaction, on-time task execution, and scheduling store labor are the major challenges for this sector to manage. Moreover, retailers need to gain more visibility and control over diversified and mixed workforce composed of in-store employees, drivers, and field service providers, both internally and externally.
Cloud based deployment is expected to grow at the highest CAGR from 2017 to 2022. The cloud deployment helps reduce the overall cost, while providing highly flexible and scalable access to the clients. The vendors are providing cloud-based software to reduce infrastructure costs for the clients. Security remains a critical issue that restricts its adoption; however, this issue is gradually being eradicated through rigorous security tests of highest standards by third parties. Considering the advantages, most vendors are switching from on-premises deployment mode to Software as a Service (SaaS)-based software.
The Small and Medium-Sized Enterprises (SMEs) segment is expected to grow at the highest CAGR in the core HR software market during the forecast period. Organizations with employee range between 100 and 1,000 are categorized under SMEs. SMEs face some specific challenges, such as requirement of domain-specific technical personnel and skilled workforce, budget constraint, and limited economies of scale. The increasing competition has prompted SMEs to invest in this business software and adopt go-to-market strategies to make efficient decisions for business growth. More than large enterprises, SMEs face resource crunch and require better methods to solve the complexities for better cost optimization on their assets and requirements.
