Last week, we published Part 1 of our recap of Bersin by Deloitte's report, HR Technology Disruptions for 2017: Nine Trends Reinventing the HR Software Market. Here is Part 2.
#4) Growth and Evolution of the Learning Market
The market for corporate learning and training is in the process of transformation. What’s driving the change? A few things:
Income Equality - The 2008 global recession caused a growing disparity between college graduates and blue collar workers, as a majority of economic and financial growth was experienced by those who were well off to begin with - highly educated workers. This shift has become a political issue, one that has caused a demand for skills training.
Job Change - It shouldn’t be a surprise that people who aren’t given the opportunity to update their skills, or learn new skills are less likely to succeed in their jobs and careers - this is especially relevant for Millennials. Research shows that learning on the job is a top requirement for Millennials looking for new jobs - out of 6 categories of job benefits, Training Development took the lead with 22% (followed closely by flexible working hours at 19%).
Learning is Evolving - The definition of learning isn’t the same as it used to be, and it continues to change. The addition of blended, social, mobile, and personalized learning methods have changed the way we understand learning, and how learning is processed.
Learning Content is Changing - Back in 2009, training was heavily instructor led, with 77% of companies using this method of delivery. In 2016, this percentage has dropped to 32% - a 45% dip. Now, training includes collaboration, virtual training, and on-the-job training. These new methods are inclusive of busy schedules and tight budgets, making them extremely popular for today’s workforce.
It’s worth noting that face-to-face training isn’t obsolete — in fact, Learning & Development departments are ramping up on effective and valuable face-to-face training that provides a positive user experience. With this focus, organizations are feeling pressure to provide proper support and coaching to their employees, during the learning and training process.
This has caused investments in content marketplaces to grow substantially - from 2015 to 2016, it’s predicted that over $5 billion was spent on educational technology. Growing organizations like Lynda.com, Coursera, OpenSesame, and Skillsoft are providing diverse, dynamic learning courses and programs.
Based on these changes, there are a couple of predicted disruptive changes in the market for 2017. With the amount of content so readily available right now, having a smart system that can recommend the right learning materials at the right time is going to be key for knowing how to make the most of the content that is there.
#5) A New Landscape for Talent Acquisition
More than $240 billion is invested in talent acquisition in the United States each year. The talent acquisition market focusses on tools that are designed to brand your organization (as well as market it), recruit and find talent, conduct background tests on new hires, interview candidates, and manage the process from start to finish.
The market for technologies and tools that assist with recruiting talent is vast and strategic. The ability to quickly hire the right people is crucial for business growth, and for achieving organizational goals. The existing tools for managing applicants are slowly becoming outdated, as many of them were developed around the same time as the Internet. New emerging technologies that are slowly taking over, cover the entire recruitment process from putting out ads, to onboarding new hires. These technologies are “smart” and intuitive.
Another important factor to consider is your organization’s brand. These days, employers don’t just assess their potential employees - employees also have their own evaluation process for companies they apply to. Websites like Glassdoor and LinkedIn allow past and current employees to rate your organization and leave detailed reviews, and they are becoming increasingly popular. From 2013 to 2015, LinkedIn’s recruiting business saw a 41% growth rate, reaching $1.9 billion, and is being used increasingly by medium to large organizations. The rise of companies like this reinforce the importance of your organization’s brand, and making sure it is appealing to potential talent.
#6) Growth in Contingent Workforce Management, Gig Work, and Part-Time Work Environments
There is an increasing number of people in the United States looking specifically for contingent, or part-time work. In fact, it is estimated that 40% of working people in the US are contingent workers. This has led to a growing market for special job networks, where people can seek workers with specialized skills. In addition, there are two new markets to encompass the new demand for specialized, contingent workers.
1. Contingent Workforce Management Systems - for example, organizations like Workday, SAP, and PeopleFluent. This encompasses vendor management software (VM’s), scheduling software, and time tracking systems. The market for these products is predicted to grow as the number of contingent workers in the U.S. rises.2. “Gig work” Networks - Vendors find employees to match specific jobs that fit their skills. Organizations like Upwork, Fiverr, and Freelancer specialize in this. These organizations have grown to include skill training and management, not just job recruiting. These sites should be on the radar of any businesses who are in need of contract workers.