Gartner, has revealed the results of its latest 2022 Magic Quadrant focused on Cloud HCM Suites for enterprises with more than 1000 employees.
According to the company, the market for Human Capital Management (HCM) solutions is diverse, with an array of HR specialists, ERP, and payroll-focused vendors all entering the landscape.
Gartner believes by 2025, around 60 percent of global mid-sized and larger enterprises will already have invested in a cloud-deployed solution for HCM to assist with administrative HR and talent management.
However, the analyst also suggests many brands will need to leverage other accompanying solutions for 20-30 percent of their HR requirements.
Gartner’s Magic Quadrant aims to assist companies with more than 1,000 employees in finding an innovative HCM solution suited to their specific needs.
This year’s report features 11 vendors, with a total of four market leaders.
Defining Cloud HCM Suites for Mid to Large Enterprises
HCM Suites support companies in attracting, developing, retaining, and engaging employees.
According to Gartner, the core capabilities of a cloud HCM solution for enterprises with more than 1,000 employees must include tools for:
- Managing employee data.
- Lifecycle monitoring.
- Organizational structure.
- Payroll and benefits administration.
- Role-based self-service.
Cloud HCM solutions for mid to large enterprises should also feature talent management tools with recruiting, onboarding, performance management, compensation planning, and career planning capabilities.
Gartner also notes these suites must include integrated HR service management with personalized access to procedure, policy, and program guidance for managers and employees.
Such solutions may also include integrated case management, knowledge bases, workflow management, virtual assistants, and digital document management.
Optional capabilities of cloud HCM Suites for enterprises may include:
- Workforce management (WFM) tools: Absence management, time and attendance, workforce scheduling, task/activity tracking, forecasting and budgeting, and other tools.
- Employee experience (EX) solutions: Functions designed to support the experience of team members, such as employee campaigns, recognitions, rewards, and voice of the employee (VoE) technologies.
- Cross-functional enabling features: Emerging capabilities that use data from other tools within the HCM suite to assist initiatives such as talent analysis, internal talent marketplaces, workforce planning, and skills management solutions.
Gartner also notes that Cloud HCM vendors are adding functionality to support the management of casual workers.
While Gartner typically divides its notable vendors into four categories, this year's edition only focuses on Leaders, Challengers, and Niche Players. Indeed, no Visionaries are included in this year's report. Let's take a closer look at each entry.
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Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises 2022[/caption]
Leaders
Leaders in the Cloud HCM environment offer a clear vision of how they can help HR leaders reach crucial objectives. In doing so, they work towards their vision with an array of products and services, demonstrating excellent business results. Most leaders use cutting-edge technologies and showcase a consistent ability to win deals. The Leaders for the 2022 Cloud HCM Magic Quadrant include:
- Workday
- Oracle
- Ceridian
- SAP
Workday
Workday combines its HCM suite with various other products for ERP functions, such as planning, finance, procurement, and professional service automation. According to Gartner, Workday benefits from the robust integration options across these offerings – many of which are best-of-breed. Indeed, Gartner pinpoints Workday as the highest-performing vendor for employee experience, with differentiating features like its Value Inclusion Belonging and Equity index, alongside built-in sentiment analysis.
Oracle
Oracle has enhanced the core HR function of its ecosystem with the use of “Journeys” to enable personalized user experiences and workflows across the suite. Additionally, advanced HCM controls can track suspicious user activity. Oracle HCM also delivers exceptional employee experience, augmented by the launch of the Oracle ME platform. Plus, of all the vendors assessed by Gartner, Oracle is the highest performing for recruitment purposes.
Ceridian
The Ceridian Dayforce ecosystem benefits from an innovative and expanding range of payroll capabilities, providing teams with cashback rewards. It also boasts robust WFM capabilities, built-in as a native function of its core product. This year, Ceridian also earned the highest vendor grades for "Market Understanding".
SAP
The SAP SuccessFactors HXM Suite, combined with various elements within SAP's broad portfolio, has interoperability at its heart. Indeed, it boasts more than 400 partner alliances that work to bring enhanced value to the product proposition. SAP also has a fantastic sales strategy, focusing on upselling existing customers and using indirect sales channels. Plus, it has excellent geographic coverage, with localized solutions in 102 countries.
