The Global Career Management Software Market is estimated to reach $960 million by 2025, growing at a CAGR of 10.2% from 2020 to 2025. Career management software is an application that enables expertise management, payroll, time tracking and repayment, workforce planning and recruitment in an organization. The tools that track employees progress, skills, experience to develop and retain internal talent is provided by career management solutions to the HR personnel in an organization. The career management software provides smart interface which allows the HR personnel to track employee progress, employee satisfaction along with feedback. The growth of career management software applications in the end use industries such as Education, Manufacturing, Pharmaceutical, Financial Services and others, along with the growth of IT sector are driving the growth of the market.
- Rise in adoption of career management software in the developing enterprises to track the skills of the employees along with the technological advancements resulting in the launch of enhanced career management tools for the organizations are driving the growth of the market.
- The cloud based deployment is dominating the market owing the surge in cloud computing globally along with rise in internet penetration. This upsurge in cloud networking are boosting the growth of the market.
- North America is witnessing a significant growth in the market owing to the rise in industrialization and IT sectors.
By Deployment- Segment Analysis
By Deployment Career Management Software Market is segmented as cloud based and on-premises. Cloud career management software is witnessing a significant growth in the market. In the recent years cloud computing is becoming an essential tool of organizations ranging from small to large. The cloud career management platform allows the organizations to manage and monitor their recruitment process, development and maintenance of employees. There is wide use of cloud career management software as there is rise in demand for jobs globally and using this application allows the HR personnel of the organizations to track all the resumes and candidates. According to America Bar Association, cloud usage bumped from 55% in 2018 to 58% in 2019 globally. In large enterprises average number of cloud application used by each employee is 36. These factors are driving the growth of the market.
By Organization size – Segment Analysis
By Organization Size the market is segmented into Small and Medium Organizations and Large Enterprises. The Large enterprises are dominating the market owing the rise in demand for jobs and use of career management software in large enterprises widely. The large enterprises are using the CMS software to describe the skills, attributes, attitudes and knowledge that the employees require in order to manage their career. The need for different organizational approach of careers owing to the growth of unpredictable career requirements are increasing the growth of CMS tools in large organizations. These factors are boosting the growth of the market.
By Geography – Segment Analysis
The Global Compensation Management Software is dominated by North America by a market share of 39.2% in 2019. In North America the growth of industrial sector, modernization of the public sectors in terms of career management prospects along with the presence of major key players are contributing the growth of CMS Market. According to the United Nations Industrial Development Organization, there is 3% growth of new industrial economies in 2019 as compared to 2018. Owing to which there is growth of career management software applications in these growing end use industries. According to the World Economic Forum, United States witnessed a growth of 16.6% in global manufacturing output after China in 2018. Owing to the growth in manufacturing sector there is a demand for CMS platform to manage and track the records of the workers in these manufacturing sectors. In Human Resource department of an organization there is a huge requirement of this software application to ensure the recruitment process. Furthermore, tracking of employees related to their work and performance are also ensured by career management software owing to which North America’s end users are adopting this software tool widely. These factors have driven the growth of CMS Market in North America.
Drivers – Career Management software Market
Rise in the growth of cloud computing and mobile application:
Upsurge in IT and telecommunication industries have led to the adoption of cloud computing owing to which cloud based career management software platform are used by the organizations. According to the International Trade Administration In 2018, 50% of enterprises with more than 1000 users are using products provided by Cloud Access Security Broker (CASB) to monitor and manage their use of software as service and forms of public cloud in United States. The use of cloud computing has increased in the recent years at a global level owing to the enhanced flexibility and scalability which has enabled the enterprises with well-organized CMS platform. In the recent years the growth of mobile application solutions adopted as a secondary source in the education sector by the students for career development purposes has predominantly driven the growth of the market. Career development, guidance, understanding of personality types are given by the mobile application to the students early enough to enhance their understanding of personality types. This factors are driving the growth of the market.
Growth in technological advancements along with internet penetration globally:
The technological advancements have led to the growth of new enterprises using artificial intelligence tools and IoT for their functioning have contributed towards the positive growth of the market. With the IoT, connected assets enable for increased collaboration between maintenance, operation, and performance, allowing a cohesive push towards continuous improvement throughout enterprises. This growth of enterprises have led to the adoption of career management software for the employees career management purposes. The development of emerging enterprises are adopting the career management software for their growth, with access control and robust security features career management software provides enhanced tracking of the employees progress and skills throughout while working in an organization. Improved retention, better employee engagement, user friendliness and others are some of the features for the career management software platform chosen as better way of convenience by the organizations for their growth and development. The penetration of high speed internet is one of the predominant factor effecting the growth of the market. Owing to the presence of high speed internet connectivity cloud computing has witnessed a significant growth. Most of the career management software are procured by the organization in the cloud due to the presence of high speed internet. These factors are fueling the growth of the market.
Challenges – Career Management software Market
Loss of productivity:
Although there are many advantages of career management software applications, when the employees are participating in a career development program they are generally not working. When the employees are not working it decreases the production. Some of the sectors for instance, manufacturing can’t afford the lag in production. Furthermore, when the employees from multiple locations have to meet at a central location career development program, it becomes costly hindering the growth of the market.
Career Management software Market is dominated by major companies such as Insaal, Oracle Corporation, The 7Geese, Career Pathing, Sum Total, IBM Watson, CornerStone, Saba Software, Celebrate Strengths, Ascendre among others.
- September 3, 2019- Acendre launched “Acendre Learning” which is a learning management solution for companies and government agencies operating in regulated industrial situations.
- April 16, 2019- 7Geese launched PeopleAnalytics and Growth Plans. With the launch of these features the organizations can now track the flight risk off all direct reports, create share employee growth plans and others.