Continued strong market dynamics: Our Global HR Tech Report analyzes sector activity in the last quarter of 2024 and shows increased M&A activity with 54 transactions totaling $2.1 billion with a 47% European share. Additionally, there were 148 Private Placements during the quarter with $746 million in disclosed deal value.
In total, 2024 saw
and the sector is expected to continue to grow:
Our Drake Star HR Tech Indices for Q4 2024 highlight strong performance across the sector. The Talent Acquisition Index maintained momentum, led by Upwork’s 59% share price surge and Fiverr’s 31% share price gain, reflecting strong demand for freelance and flexible workforce solutions. The HCM/Talent Management Index also saw solid growth, with Paycor, Paycom and Paylocity increasing their share price by more than 20%, reflecting the strong tailwinds in the payroll industry driven by the increasing adoption of cloud-based payroll solutions.
The industry defining transaction of the fourth quarter was ADP's acquisition of WorkForce Software for $1.2 billion. The acquisition of the leading cloud-based workforce management solution enhances ADP's global offering and drives future innovation in workforce management. Maria Black, CEO of ADP, highlighted the importance of dynamic workforce management solutions in today's evolving global landscape. She said: "As the needs of today's global workforce continue to shift, employers need dynamic workforce management solutions that will help them maintain compliance and flexibility while engaging their employees."
HR Technologies shaping the future of HR teams and employees
In the report we also look at the key HR Technology trends that are shaping the future of HR professionals and employees. Among the top 10 are AI-powered HR Data Analysis Tools, AI-based Assistance Systems, Language Models, AI-powered Recommendation Systems and AI-based Dialog Systems – which once again highlights the high relevance of AI. 63% of experts view AI-powered HR data analytics tools as highly relevant, supporting reporting and evidence-based decision-making and AI-based assistant systems are valued for improving efficiency in routine tasks like text formulation.
The areas of HR work in which organizations will increasingly use new technologies according to leading industry experts are the matching of profiles, the optimization of job ads, strategic personnel policy, personnel marketing, analysis of CVs and fluctuation analysis. Results show the expectation that new technologies can not only increase the attractiveness for applicants, but also strengthen the long-term loyalty of employees to the company.
For more insights as well as all the data our HR Tech team has put together, download the full report below: