HCM software holds a unique position in the architecture. Although some believe ERP should encompass HCM processes, regulatory challenges necessitate a dedicated HCM system. Smaller companies may initially rely on payroll software. However, as they grow, the complexity of HR demands sophisticated HCM solutions to navigate compliance and regulatory issues. Notably, the confidentiality requirements for HR data, encompassing compensation and personal information, pose significant challenges. The challenges are dictated by varying state and country regulations.
There’s a significant overlap between HCM, CRM, and ERP software, given their interconnected nature. Companies with union reporting requirements may need ERP processes embedded with employee data, while those with production scheduling needs require employee data integrated into shop floor processes. Certifications and availability are also crucial, ensuring the allocation of the right skill set for specific jobs.
Selecting an unsuitable HCM software that is not tailored to your industry can impact your enterprise architecture. This list aims to outline the pros and cons of the leading HCM software options available in the market.
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10. UKG Ready
UKG Ready stands out among the top HCM software for SMBs, suitable for global organizations with basic HCM needs. Positioned between smaller solutions like BambooHR and ZohoHR and larger ones like Workday and SuccessFactors, UKG Ready offers a more accessible adoption for smaller organizations. Unlike larger counterparts, it doesn’t require configuring enterprise-level approvals, making it user-friendly. Companies headquartered in the U.S., Canada, Mexico, the U.K., France, the Netherlands, Belgium, New Zealand, and Australia can leverage UKG Ready for employee support in over 85 countries.
However, UKG Ready may not suit larger organizations with specific needs like succession planning, flexible benefits, and intricate compliance reporting requirements.
9. Zoho HCM
Zoho HCM is tailored for SMBs in sectors like IT, media, education, healthcare, and finance, particularly advantageous for those already using other Zoho apps. With a budget-friendly licensing price, it’s accessible for startups and smaller companies, complemented by strong support for DIY usage.
Zoho HCM’s simplified design suits their business model but may not be ideal for industries with intricate reporting or compliance needs. Larger companies with complex benefits management requirements may find it lacking. Additionally, Zoho HCM supports around 20 languages, limiting its global reach compared to UKG Ready.
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8. Infor WFM
Infor WFM is tailored for larger manufacturing organizations with union workers, catering to industries like automotive, aerospace, hospitality, public sector, and healthcare. It addresses specific employee reporting requirements governed by OSHA and other relevant regulatory organizations in specific countries.
Infor WFM, being a relatively costly product, is not an ideal fit for SMBs. It is best suited for larger companies with a minimum revenue of $250 million and a substantial workforce. The solution is particularly advantageous for organizations already utilizing Infor products like Infor LN or M3, as it seamlessly integrates with them. This integration facilitates the embedding of employee data into service and procurement scheduling workflows.
7. Ceridian Dayforce HCM
Ceridian Dayforce HCM is designed for SMB companies in manufacturing, retail, hospitality, the public sector, and healthcare. While it shares similarities with Infor WFM, Dayforce is more tailored for smaller organizations with a significant focus on blue-collar and hourly workers.
The solution lacks advanced features like benefits management, what-if scenarios, and succession planning, making it unsuitable for companies needing intricate approval processes or robust security workflows.
6. ADP Vantage HCM
ADP Vantage provides an integrated suite featuring HR Payroll, Workforce Management, Benefits, Recruiting, and Talent Management. Tailored for large enterprises with 1000+ employees, it is particularly advantageous for those already using ADP for payroll, offering separation of duties and accommodating various management layers.
For smaller companies, setting up and maintaining ADP Vantage can be complex, given the additional overhead of separation of duties. Communication issues among different modules, particularly between benefits management and payroll, can pose challenges for real-time interactions, as reported by our customers.
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5. BambooHR
BambooHR, geared towards SMBs with basic HCM needs, competes closely with ZohoHR. Both target similar industries and startups with smaller HR departments and limited implementation budgets. With a total implementation cost as low as $3-5K, BambooHR provides support directly from Bamboo HR or through one of its partners.
The solution has limited reporting capabilities and may necessitate add-ons for advanced features like time clocks. In contrast, more advanced products such as Ceridian offer these capabilities out-of-the-box.
4. UKG Pro
UKG Pro, the flagship product in the UKG portfolio, caters to mid-large organizations with a need for enterprise workflows, separation of duties, and comprehensive workforce management. It seamlessly integrates with UKG Dimension products for advanced workforce management, positioning itself as a full-suite product akin to Workday, SAP SuccessFactors, and Oracle HCM. With native localization in over 100 countries, it eliminates the need for add-ons or partner-provided functionality to support diverse global requirements.
UKG Pro faces a challenge in its ecosystem with a limited number of available partners for product support, especially when compared to industry counterparts like Workday, SAP SuccessFactors, and Oracle Cloud HCM.
3. Oracle Cloud HCM
Designed for larger enterprises with complex management structures and approval flows, Oracle Cloud HCM is ideal for industries like technology, media, telecommunications, and healthcare. It offers additional advantages for organizations already utilizing other Oracle products, such as Oracle Cloud ERP.
Despite its strengths, Oracle Cloud HCM presents challenges, particularly with its user interface, which relies on legacy products like Taleo. Smaller companies may find its complex workflows and data setup overwhelming. Moreover, it may not be the optimal choice for industries employing blue-collar workers, emphasizing the importance of considering these factors when evaluating the solution.
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2. Successfactors
Tailored for enterprises, the SuccessFactors HXM suite is an ideal choice for companies utilizing other SAP products, notably SAP S/4 HANA. Boasting support for 43 languages and over 45 localizations, it provides a holistic solution. With a dynamic ecosystem of consultants, it meets the varied requirements of manufacturing and trade-related industries, presenting a compelling option for businesses deeply rooted in the SAP ecosystem.
SAP SuccessFactors seamlessly integrates with other enterprise-grade SAP products like Qualtrics for comprehensive employee experience workflows. However, its extensive capabilities and costs might be overwhelming for smaller companies.
1. Workday
Workday caters to enterprise-level companies requiring intricate management workflows, particularly in complex hire-to-retire and benefits compensation processes. Its strength lies in industries like technology, media, telecom, insurance, and financial services, aligning with sectors where Salesforce is prominent. Workday is frequently deployed alongside Salesforce, FinancialForce, and ServiceNow to address comprehensive IT management and workflow automation needs. A key advantage of Workday is its cloud-native UI and seamless integration with other suite products, including EPM and Financials.
Despite its strengths, Workday Financials is not always a fully matured product and is sometimes overpromoted by its partners, leading to instances of failed implementations. Success with Workday requires careful selection and expertise in enterprise architecture.
Final Words
Given the variations in labor laws across states and countries, selecting and implementing HCM products demands a deeper level of expertise, such as that of independent ERP consultants. HCM workflows are often intricately linked with ERP, MES, and Service Scheduling modules. Consequently, HCM software selection can have wide-ranging implications on the overall enterprise architecture, potentially influencing operational efficiencies.
When incorporating HCM software into your architecture, it’s essential to clearly define roles and responsibilities for each system interfacing with the HCM software. This list aims to assist you in shortlisting potential options that align with your architecture needs.
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