Digital shadows In the comingyear, expect human capital management solutions to become morepersonalized to better serve users and improve theirexperiences.(Image: Shutterstock)


How will human capital management solutions change in2020 to meet emerging workforce needs?


"The world of work has reached an inflection point, punctuatedby a tight labor market and stabilizing wage growth," says DonWeinstein, ADP's corporate vice president, global product andtechnology.


"Amidst this landscape, we are seeing a business-criticalconvergence of technology and data in the workplace," Weinsteinsays. "In 2020, companies will look to leverage customizable techsolutions that meet the needs of their organization, their teamsand their workers to provide a more engaging and productive workenvironment."


Related: Navigating the use of artificial intelligence forHR functions


ADP predicts these five HCM trends will occur next year:

  1. As companies increasingly look to hire more highly specializedgig workers, returning workers and retirees to supplement in-houseteams, HCM solutions will be re-architected to better supportteamwork.
  2. HCM solutions will become more personalized to better serveusers and improve their experiences. As such, more HCM functionswill be placed on apps that have "consumer-grade" experiences farsuperior to "monolithic software" that is difficult to implement.To personalize the experience, apps will leverage emergingtechnology, artificial intelligence and machine learning, as wellas natural language processing that allows for more conversationalchat bots. Pay solutions will also become more personalized toenable workers to get paid "the way they want, anytime they want,"augmented by personalized, employer-driven financial wellnessofferings will help workers manage their pay, savings and improvetheir financial well-being.
  3. Companies that have workers around the world logging into theirHCM systems have to make sure they are compliant with all of thelatest regulatory demands in each country where they operate. Theincreasing complexity of the regulatory landscape will require thatHCM solutions localize compliance tools to better handle changingpolicies, regulations and laws at all levels.
  4. Predictive analytics within HCM solutions willbecome table stakes, providing more informed workforce insightssuch as overtime spikes, excessive turnover, labor costs and payequity. Analytical tools will be further enhanced by AI, machinelearning, serverless computing and 5G connectivity.
  5. More cloud-based HCM solutions will be introduced as moreemployers move their workloads to the cloud. ADP predicts thatemployers will prefer cloud-native platforms, as they eliminatemaintenance windows, provide an open ecosystem approach and areeasier to update and scale. Such platforms also require lesstechnical fluency from users so they can tailor worker experiencesand create their own workflows. The flexibility of cloud-native HCMplatforms enables employers to create personalized solutions to fittheir organization, and the adaptability of such solutions enablesthe platforms to effectively respond to the changing needs of eachemployer.

In addition to these five overarching trends, ADP has drilleddown into several "vertical-specific" trends impacting the gig economy,accounting industry, franchise industry, benefits and brokers,among other trends.


Read more: 

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.