As per the report by Fortune Business Insights, the global Human Resource Technology Market Size projected to reach USD 39.90 billion in 2029, at a CAGR of 7.5% during the forecast period, 2022–2029. While North America is leading the global market obviously because of the presence of a majority of market players, what about the Europe? Let’s dive into the HR Technology market of Europe.
HR Technology market size in Europe
In 2021, the market received over €1.9 billion in investments toward HR tech startups, which surpassed the previous year’s investments by 144%. In result the expansion of People technology solutions increased.
The global Theta Award 2017, for best idea in the world to improve HR and recruitment, was won by a German innovation. The UK leads the design of digital strategies, while France is open to cloud-based computing.
What is fuelling the Europe HR Technology market?
Among many reasons that is demanding for better technology solutions to manage human resource processes at workplace, below are the most considerable reasons for speeding Europe HR Tech market.
Covid-19 pandemic impact on the careers
McKinsey authors state that, “the COVID-19 crisis ended years of strong employment growth marked by greater mobility. The crisis put up to 59 million European jobs, or 26% of the total, at risk in the short-term, through reductions in hours or pay, furloughs, and permanent layoffs.”
All the changes occurred in Workplace had to manage through their existing HR system or else through a new HRIS. While the world is changing, behind the curtains were the HR Technology consultants and analysts working hard to deliver the potential new solutions to continue the businesses.
Many individuals saw the opportunities during the hard time and accelerated their ideas into programs.
Growth due to demand for workforce automation solutions
The need to forecast labor demands and develop workforce contingency plans have increased more than ever. This is to help administrators to manage employee schedules, PTO, and leave requests etc at factories and warehouses, etc. More than traditional systems it is required to view reports on labor activities with workforce analytics capabilities and insights with predictions. Also, it is necessary to track employee attendance and workforce competencies as well.
For example, Tilla is a solution focused on workforce management in maritime industry founded in Germany. Also AstraZeneca uses Workday to manage their talent requirements. Read their success story here.
Improved employee productivity and flexibility
It is always the main topic in the discussions, how to improve the productivity of employees? Are they productive? Many companies already started to navigate workplace productivity challenges with the boost of work from home.
Employers across Europe provide flexible options to work from anywhere in the union. For an example, Portugal for Digital nomads where the country offers flexible legal status for individuals who are looking to work from anywhere in the world.
Startups in Europe
Across the Europe and UK there are many HR technology startups developing tech solutions. Among them the highest capital invested in the UK. Then Germany, Spain, France also gradually increasing HR tech startup space. This means the market is highly competitive but provide many advantages to the businesses. As an HR tech enthusiast, we can understand the demand for the consultants and analysts in this space.
Who are Key Players in the market ( Large scale)?
- SAP SE (Germany)
- Oracle Corporation (U.S.)
- Automatic Data Processing (ADP), Inc. (U.S.)
- Cornerstone OnDemand, Inc. (U.S.)
- Ceridian HCM Holding Inc. (U.S.)
- Workday, Inc. (U.S.)
- Infor, Inc. (U.S.)
- Cegid Group (France)
- Hi bob Inc. (U.K.)
- The Access Group (U.K.)
Workday and Europe Market
Workday is a know platform which speeds up the reconciliation process, and consequently, enables organisations to quickly make business decisions amid a fast-moving business landscape. Workday also announced that they are expanding its Industry Accelerators programme to Europe, beginning with the UK market. The first wave in the UK will be for Banking and Insurance Industries with other markets and industries to follow. This will cause an increase in the current Workday client portfolio indirectly increasing the demand for Workday relevant skills ( there are 2000 clients in Europe).
Nordic HR Tech Market
Nordic HR Tech market comprises Sweden, Finland, Norway, Denmark, and Iceland. This market is supporting more home grown tech solutions and those are integrated with their unique lifestyle and work life balance. However, there are industry giants using Workday as their People solution, such as Spotify, Ikea, Axis Communication, Polestar, AstraZeneca etc.
Sweden and HR Technology growth
On the European Innovation Scoreboard the country ranks 3rd in Europe when it comes to innovation in the field of human resources. Interesting facts about Sweden is that introducing 6-hour work week by Toyota Center in Gothenburg has played a revolutionary role in modifying how work is done in 2022. Also, Sweden employments are protected and supported by on the Unions. The Union support to maintain proper wages and employee benefits irrespective of white-collar workers.
According to a recent Digital Transformation Report, published by Microsoft, Sweden is considered to be one of the most prolific technology hubs in the world. Examples of successful HR tech start-ups are Henry, an intelligent chatbot designed to make sharing team feedback easy, and then Career eye, which rates employers.
Here are the Laws and Acts benefiting the employees in Sweden.
- Employment Protection Act
- Co-Determination Act
- Discrimination Act,
- Annual Leave Act,
- Personal Data Act,
- Parental Leave Act,
- Working Hours Act
- Work Environment Act
- Sick Pay Act.