Big Money Flowing into HR Technology
Investments in HR Technology companies are growing at a record pace in 2015. According to the Wall Street Journal, venture capital firms are putting record amounts of money into the growth of HR Technology companies (see graph below).
What does all this mean? It means with a solid economy and pent-up demand for HR technology improvements, money is pouring in and the market is trying to catch up to current and expected demand. It also means HR Technology is here to stay and is only going to grow in the future. Technology solutions are rapidly being implemented in mid-size and smaller companies. As an example, I am currently working on implementing a benefits enrollment/administration system for a non-profit employer with 50 employees. That never would have happened even two years.
Stay tuned as more companies realize these technologies are available and affordable. That realization will be fueled by marketing efforts of the very firms that are receiving these records amounts of investment. And as vendor competition heats up, employers will win with more options at lower costs.