HR software is ubiquitous.
Our previous research found that 75% of HR professionals use some form of recruiting or applicant tracking software, for instance.
And that’s just one type of human resource software. There’re tons of other types. From benefits administration, to training, to performance appraisal, HR tools are offered in a bewildering array of categories and cater to just about every HR need under the sun.
And we decided to try and make an HR infographic to show you all of them.
The below HR Technology Landscape infographic was designed to give you a broad snapshot of the HR software market and the many, many different options within it. Vendors are represented by their logos, and broken out by category.
For a more in-depth explanation of how the infographic was made, and some insights on what it tells us about the HR tech industry, see the additional analysis after the graphic.
There are a few important points to note about the above HR tech infographic:
- Crucially, there are a lot more HR software companies than are represented here: We tried to select a representative sample of known and established companies to keep this graphic from being too massive, though even this limited selection may be overwhelming. With over 540 different solutions pictured, across six different buckets and 17 different subcategories, we found the sheer diversity and immensity of the HR software market daunting.
- We fudged and combined some of our categories of HR software: Some people might object to us combining categories like recruiting and applicant tracking, or talent management and HRIS, but we felt the distinctions between these types of software minimal enough, and the difficulty in distinguishing the two high enough, to blend them.
- Many vendors could be in multiple categories: Rather than have some HR software companies show up multiple times we deliberately selected which category we thought they most fit into and put them only in that category.
- Some categories cover software that is only marginally HR-related: Many LMSs, for instance, are not aimed at corporate internal training, but at the academic market, or at people selling courses. Nonetheless they can be used for internal training and so were included.
So what does it mean?
Seeing all these HR systems in one place is illuminating.
For one, there’re a lot of them. The HR technology landscape is a crowded one, and this graphic isn’t even comprehensive.
But there’s also a broad swath of niches these software tools fill, meaning despite the large overall number of HR software systems, many seem to be so tightly targeted they don’t face much direct competition.
Indirect competition, on the other hand, is rife, and likely to grow.
For instance, many targeted, standalone HR software platforms are facing increased pressure from integrated talent management and HRIS suites. These tools, once reserved for large enterprises, are moving into the cloud and coming down enough in price to be attractive to SMBs. This means where once a small business would use three or four different systems to handle recruiting, payroll, scheduling, and performance management, instead they choose one centralized suite that combines all this HR functionality into one.
As the Talent Management category on this graphic, already one of the largest, continues to grow, we may see the other categories shrink, or at least see vendors in those categories increasingly integrate with the larger software suites to maintain market share.
Do you have any questions on our methodology or comments on what this landscape view says about the HR software market? How would you change future versions? Add your thoughts in the comments section below!
See the full HR technology landscape infographic here.