By Neil Denslow
Companies will be investing in human capital management (HCM) projects in 2003, according to AMR Research. The analyst house found that 87% of companies plan to increase or maintain spending on HCM technology.
Companies will be investing in human capital management (HCM) projects in 2003, according to AMR Research. The analyst house found that 87% of companies plan to increase or maintain spending on HCM technology, with a large majority of companies planning at least one major project. The most popular areas for implementations were recruitment and employee performance management software.The main driver for recruitment applications seems to be the flood of CVs that are currently overwhelming many HR departments. This is forcing many organisations to reassess their recruitment processes, which is then leading them to realise the need for an automated and more efficient system.The interest in employee performance management software meanwhile is being driven by the growing awareness of enterprise performance management (EPM). This concept links corporate strategies and goals to individual workers’ objective and incentives to help improve the company’s day-to-day operations. A successful implementation, however, requires a company-wide commitment to developing an environment of performance and accountability.“The fact that most companies are planning to maintain or increase spending on HCM is good news. There’s a growing realisation that aligning work and workers and managing employee performance — which are key capabilities of HCM applications — are an essential part of growing the business. Companies will still spend selectively, but with an eye to creating value and revenue growth via better HCM strategies, such as recruiting and performance management. With the promise of better enterprise performance as a result, we should continue to see spending on HCM applications increase in 2003 and beyond,” says Monica Barron, senior research analyst, AMR Research.