Top 5 excellent HCM software development companies (2024 list)

In today’s rapidly evolving business landscape, Human Capital Management (HCM) software plays a vital role in streamlining HR processes and improving workforce efficiency.

But how can your business develop a custom HCM solution that truly adds value? What are the best practices to ensure your project succeeds?

In this article, GEM introduces the must-know concepts and features of HCM software development – drawn from our real-life insights and success stories – before enlisting the reputable HCM software development companies that you should know and consider.

Definition of HCM software development

HCM software is a collection of tools designed to assist organizations in recruiting, hiring, developing, compensating, managing, and retaining employees.

An HCM software solution tends to cover many workforce management tasks, including:

• Recruitment

• Employee data management

• Payroll and benefit administration

• Performance tracking

An effective HCM software solution tends to have the following characteristics:

• User-friendly interface to ensure ease of use for HR professionals and employees

• Scalability and customizability so that the solution adapts quickly to growing businesses

• Data security measures to safeguard sensitive employee information

• Integration to enable seamless connection with other enterprise systems (e.g., CRM, ERP)

While HCM software solutions offer a wide range of capabilities, organizations should prioritize the following essential functions to optimize their value.

• Employee data protection measures to comply with local and global privacy laws and prevent confidential personal information from being exploited

• Talent acquisition module to support the recruitment process, including employee onboarding, job requisitions, and candidate screening and selection.

• Talent management module to help companies oversee recruitment, employee engagement, compensation, performance evaluations, and leadership development.

• Training and development to help managers align employees with learning opportunities based on their development plans, while also allowing employees to choose their own training.

• Workforce management module to enable organizations to monitor and plan their workforce size. Companies employing external workers, such as freelancers and consultants, should seek HCM systems with workforce management tools that track details about these external contributors.

• Performance management to allow managers and employees to collaborate on shared performance records stored in a single system. This module also supports goal setting and progress tracking.

• Employee self-service to allow employees to use the HCM system to submit expense reports and timesheets, as well as view and update personal information.

• Compensation management to analyze and manage compensation data. This function ensures fairness and inclusivity across the company, which can assist in future compensation planning.

Recent statistics about HCM software development

The global HCM software development market is experiencing rapid growth due to the growing need for streamlined HR processes and improved workforce management.

• 55% of spending on HCM software solutions comes from companies with revenue of $5 billion or more, meaning they are highly trendy among industry giants and prove to be worth the investment

• The Finance & Insurance, Public Administration, and Manufacturing sectors spend the most on HCM

• The biggest spenders are businesses located in the AMER region – North, Central, and South America.

As of 2024, approximately 2 million companies in the United States invested $13.3 billion in HCM software, representing 38.9% of the total HCM market. Other significant markets include China, Japan, and the United Kingdom, contributing 12.4%, 7.2%, and 5.1% of global spending, respectively.

Source: HGInsights

Benefits of using HCM software

HCM software is crucial in simplifying complex HR tasks, driving efficiency, and fostering employee engagement.

Improving HR operations

An HCM platform combines all HR and employee data into a single system and becomes a central hub for many processes such as storing employee records, processing payroll, managing benefits, tracking time and attendance, handling compensation, and conducting performance reviews. Depending on the application, it can include additional functions.

This system keeps employee data organized, supports regulatory compliance, and increases HR efficiency.

Enabling data-driven decision-making

HCM software allows organizations to analyze collected employee data to gain greater insight into their workforce. This data helps businesses make informed decisions based on accurate, reliable, and up-to-date information.

As a result, they can ensure that organizational policies and processes are having the intended effect.

Attracting and retaining top talent

Talent acquisition and management tools in HCM suites help organizations find and retain high-quality candidates.

• Talent acquisition tools filter resumes to identify the best fit for job openings

• Talent management tools engage employees through career development and training opportunities.

Important factors when choosing an HCM software development company

The process of selecting an HCM software development company is not only about technical expertise but also identifying who can provide you with both innovation and lasting support.

With so many options available, selecting the perfect HCM software development company requires careful consideration of several crucial factors.

Technical expertise

It is important to choose a company with a strong portfolio that showcases their capability in managing complex HR processes. This includes handling payroll systems, employee data management, and integrating with other enterprise tools.

Additionally, companies that stay current with the latest technologies, such as AI, machine learning, and cloud computing, have a competitive edge. They are better positioned to provide a future-ready HCM software solution that can adapt to changing business needs.

Client-centric approach

In addition to technical expertise, leading HCM software development companies emphasize a client-first approach. This approach involves a deep understanding of the specific needs, challenges, and goals of the business to create a solution that is tailored to meet those requirements.

Also, client-centric companies listen closely to feedback, engage actively throughout the development process, and ensure that the final product aligns with the company’s organizational structure and HR strategies.

This personalized attention ensures that the software is capable of addressing both current and future needs, improving overall HR operations and the employee experience.

Proven track record

A company’s proven track record offers valuable insights into its ability to deliver successful HCM solutions. Evaluating case studies and client testimonials provides a clearer picture of the company’s past performance, particularly in projects similar to yours.

Businesses should seek out development companies with positive client feedback and well-documented success stories that demonstrate how they have helped businesses address specific HR challenges. A strong track record instills confidence in a company’s ability to meet expectations and deliver effective solutions.

Ongoing support

HCM software development does not end with the system’s launch. Ongoing support, including updates and maintenance, is critical to ensuring that the software continues to function efficiently as the business grows and industry regulations evolve. A reliable development partner will provide continuous post-launch services such as technical support, bug fixes, and regular updates to maintain security and compliance with new legal requirements.

Furthermore, offering scalable maintenance services allows businesses to adapt their HCM system to changing needs, ensuring its long-term effectiveness and relevance.

Top HCM software development companies globally (2024 list)

Here is a curated list of the top HCM software development companies worldwide in 2024, recognized for their innovative solutions and expertise in optimizing human capital management processes.

Global Enterprise Mobility (GEM Corporation)

GEM Corporation stands as a top software development company in Asia. Boasting a team of over 300 highly skilled engineers, an ISO-certified and CMMi-appraised delivery process, and a comprehensive tech stack, GEM has supported more than 300 industry leaders across 10+ countries.

Location

Hanoi, Vietnam

Key services

• Digital transformation services

• Digital strategy consulting

• Mobile application development & modernization

• Web application development & modernization

• AI, Data, and Cloud services

• Quality assurance & testing

• Low-code/ No-code development

• Managed services

And many more.

Notable HCM software development projects

• Developing and maintaining multiple HR and payroll solutions for a globally leading provider

• Building an all-in-one back-office management system for up to 14,000 users

ScienceSoft

Established in 1989, ScienceSoft is a US-based company offering IT consulting and software development services. Clients highly regard the company’s commitment to budget and time management, transparent collaboration, and consistently high-quality service delivery.

Location

The USA

Key services

• Software development

• Mobile app development

• Web development

• Testing & QA

• UI/UX design

• Managed IT services

• IT consulting

• IT outsourcing

And more.

Notable HCM software development projects

• Building an HR system on SharePoint to streamline and automate HR processes, thus significantly improving employee experience.

Rocketech

Rocketech is a forward-thinking software development company with over 5 years of experience. The company specializes in leveraging popular technologies to drive business growth through innovative solutions.

Location

Headquarter: Singapore

Key services

• Dedicated team

• Software development

Notable HCM software development projects

• Building an internal IT solution to optimize the resume formatting processes for 200+ recruiters that can easily be integrated with external platforms.

Softude

Softude is a specialist in enabling business transformation and change management with over 17 years of experience.

Location

India

Key services

• AI & ML development

• Cloud application development

• Digital transformation

• Low-code development

• Staff augmentation

And many more

Notable HCM software development projects

• Developing a custom time-tracking app solution for workforce management that can process data inputs from different systems and visualize them on a dashboard

TheoremOne

TheoremOne – now known as Formula.Monks – is an innovation and engineering company that develops and launches technology-driven solutions.

Location

The USA

Key services

• New product development & innovation

• Legacy modernization & workflow automation

• Management consulting for digital transformation

• Strategic team augmentation

Notable HCM software development projects

• Building a group of solutions to automate and enhance HR, payroll, and onboarding processes in the entertainment industry

Closing remark

In conclusion, a well-designed HCM system plays a vital role in streamlining HR processes, improving workforce productivity, and enhancing overall business efficiency. Selecting the right HCM software development company is essential for achieving that goal.

GEM Corporation stands out as a trusted partner, offering a combination of deep technical expertise and a strong focus on client-specific, business-driven solutions. If you’re seeking tailored and innovative HCM software to streamline your HR processes and drive growth, explore GEM’s offerings and see how they can transform your business.

Meet GEM Corporation – Your trusted partner for developing HCM software

Over the past 10+ years, GEM has delivered tech solutions with exceptional quality and functionalities to 300+ global clients.

HCM software development is one of our key strengths, as we have successfully built robust, scalable solutions that streamline HR processes, enhance employee engagement, and drive operational efficiency

Only one step left before you are connected to our team of 300+ savvy IT experts.