Human Resources Is Now Human Capital, and It Requires Quite a Bit of Management

Managing a workforce is no longer a simple matter of verifying hours worked and cutting paychecks on time. Manufacturers worldwide are increasingly focusing their human resources efforts on processes such as recruiting, performance management, and succession planning.

"HR is no longer a low-priority cost center," says Jeff Freyermuth, an analyst at AMR Research.

In a market that is just now coming of age, it's important to remember that HCM applications are in their infancy, says Albert Pang, director of enterprise applications research at IDC Manufacturing Insights. "Even in the ... '90s and early 2000s time frame, there just weren't many tools available for you to, let's say, do résumé processing," he points out.

Still, today's HCM market is vast and multifaceted. AMR estimates its size at more than $8bn. IDC segments the market into five functional buckets: e-recruiting, performance management, administrative processes, intelligence compensation, and workforce management.

Read Full Article