Market Perspectives

ISG Research is happy to share insights gleaned from our latest Buyers Guide, an assessment of how well software providers’ offerings meet buyers’ requirements. The Talent Suites: ISG Research Buyers Guide is the distillation of a year of market and product research by ISG Research.

Human Capital Management (HCM) software has undergone a profound transformation over the past decade, shifting from a back-office system of record to a strategic enterprise solution. Traditionally, HCM platforms focused on administrative functions—housing employee data, managing payroll and ensuring compliance. While these capabilities remain essential, they are no longer sufficient on their own. Today, employees expect systems that actively support their growth, engagement and well-being, while businesses demand tools that drive workforce intelligence, productivity and retention.

ISG Research defines a talent suite as a comprehensive solution supporting the entire talent lifecycle, including Recruiting, Onboarding, Learning, Performance and Talent Planning. To address fragmented systems, shifting workforce expectations and rising demand for internal mobility, a unified, artificial intelligence (AI)-powered talent experience is now essential. Software providers are enhancing talent suites with AI-driven skills matching, career pathing and personalized learning, helping HR teams connect employees with growth opportunities and improve workforce agility. As organizations future-proof talent strategies, seamless integration with the broader HCM ecosystem is crucial for delivering scalable, data-driven insights.

The workplace has evolved dramatically, shaped by shifting workforce demographics, remote and hybrid work models, and an increasing emphasis on skills-based talent strategies. Employees are no longer passive participants in HR processes; they are digital consumers who expect workplace technology to offer the same seamless, intuitive experiences they encounter in their personal lives. The rise of consumer-grade digital experiences has set a new benchmark for enterprise technology, making AI-driven personalization, self-service capabilities and intelligent automation critical to the success of modern HCM platforms.

Organizations that fail to meet these expectations risk operational inefficiencies, disengagement and increased employee turnover. As a result, business leaders are looking to HR technology to enhance agility, improve decision-making and align workforce strategies with broader corporate objectives. Companies that continue to rely on static, outdated talent management and talent development systems often struggle to respond to dynamic market conditions, supply chain disruptions and evolving customer demands. The ability to adjust workforce strategies in real-time is no longer a competitive advantage—it is a business necessity.

One of the most significant drivers of change in HCM software is the growing integration of AI and machine learning (ML). By 2026, one-half of enterprises are expected to require AI-driven capabilities in their HCM systems to enable personalized experiences, real-time insights and proactive workforce management. AI is no longer a mere enhancement—it has become a core requirement for enterprises seeking to improve HR efficiency, reduce administrative burden and deliver employee-centric solutions at scale.

AI-driven workforce planning tools are transforming how organizations approach talent management. Predictive analytics allow HR leaders to anticipate talent shortages and proactively address gaps before they impact operations. Instead of relying solely on historical workforce data, companies now use AI-powered forecasting to identify critical roles, assess internal talent readiness and determine whether upskilling or external hiring is the best approach.

Beyond workforce planning, AI is reshaping how employees interact with HR technology. Employees increasingly expect intelligent, conversational experiences that anticipate their needs and provide actionable recommendations. AI-powered virtual assistants and chatbots are reducing administrative workload by handling routine HR inquiries related to payroll, benefits and policies, while also improving response times and employee satisfaction. These advancements free up HR teams to focus on strategic initiatives, such as workforce development and employee engagement.

As organizations continue modernizing their HR functions, competition among HCM, talent management, and talent development software providers is intensifying. Established enterprise software providers are expanding their offerings with AI, automation and advanced analytics to differentiate their platforms. At the same time, emerging disruptors are gaining traction by introducing highly specialized, next-generation solutions tailored to specific industry needs and focused on the consumer-grade, culture-forward experience. In addition, talent suite providers are leveraging AI to respond to the ever-changing regulatory landscape, delivering value through real-time updates and automated risk assessments.

One of the most significant shifts in the talent suites market is the growing demand for modular, highly configurable platforms. Enterprises no longer want rigid, one-size-fits-all software; instead, they are seeking flexible solutions that allow for customization, seamless integration with third-party applications and scalability to meet evolving business needs. Providers capable of offering both comprehensive talent suites and best-of-breed modular solutions will be best positioned to capture market share in the coming years.

AI-driven automation is further reshaping traditional HR functions, particularly compensation management, benefits administration and compliance tracking. Historically, these processes required extensive manual intervention, leading to inefficiencies and increased risk of errors. AI-powered solutions are now enabling real-time compliance updates, automatic compensation benchmarking and equity analysis, and predictive analytics for benefits utilization. These advancements not only enhance operational efficiency but also minimize costly mistakes, reinforcing AI as a critical driver of the next evolution in HCM software.

In addition to automation, the shift toward skills-based workforce planning is transforming HCM strategies. By 2027, one-third of enterprises are expected to prioritize career and skill development opportunities for employees over traditional job-based structures. As a result, providers are incorporating AI-powered learning pathways, career-matching algorithms and automated mentorship programs into their platforms. Instead of relying on tenure-based promotions, forward-thinking organizations are using HCM technology to assess employees based on demonstrated skills and potential, ensuring career progression aligns with both workforce aspirations and business objectives.

Beyond technological advancements, successful talent suite adoption depends on effective change management. Many HR technology implementations fail, not because of poor software design, but due to inadequate training, communication and integration into existing workflows. Employees and managers often struggle with new systems when they are introduced without sufficient guidance, leading to resistance and underutilization.

The most successful enterprises take a structured approach to talent suite adoption by implementing phased rollouts, targeted enablement programs and ongoing support mechanisms. Organizations that invest in HR technology champions—internal advocates who help drive engagement and guide employees through new processes—see higher success rates. Additionally, software providers that offer intuitive user experiences, AI-powered self-service tools and embedded coaching within their platforms make it easier for organizations to drive adoption and maximize ROI.

Another critical trend shaping HR software adoption is the growing importance of AI-driven workforce intelligence. AI is no longer just a tool for automation—it is transforming how organizations make strategic HR decisions. Companies are increasingly leveraging AI-powered people analytics to assess employee sentiment, predict attrition risks and identify workforce performance trends. These insights allow HR leaders to proactively address challenges, ensuring that retention strategies, career development programs and compensation structures are aligned with evolving workforce needs.

AI is also enhancing employee experiences by making HR technology more interactive and responsive. Virtual assistants and AI-driven chatbots handle routine HR inquiries, improving accessibility and response times while reducing administrative workloads for HR teams. This enables HR professionals to shift their focus toward more strategic initiatives, such as workforce planning, employee engagement and skills development, rather than being bogged down by transactional tasks.

As organizations continue to embrace AI-driven workforce intelligence, the ability to derive actionable insights from data will be a key differentiator. Companies that invest in analytics-driven decision-making will have a competitive advantage in optimizing talent management, improving employee retention and aligning workforce strategies with business goals.

The debate between all-in-one HCM suites and best-of-breed solutions will continue to shape the provider landscape. While full-suite providers offer seamless integration across HR functions, some enterprises prefer specialized solutions that provide best-in-class capabilities for specific HR needs. The deciding factors often come down to integration capabilities, scalability and the level of AI-driven automation within the platform. Organizations must carefully evaluate their unique workforce requirements and long-term business objectives when selecting an HCM or talent suite solution.

Looking ahead, the next decade of HCM software will be shaped by organizations’ ability to adapt, integrate AI strategically and prioritize employee-centric experiences. Companies that invest in agile, intelligent and user-friendly HR technologies will gain a competitive advantage in attracting and retaining top talent. The demand for AI-driven automation, predictive analytics and integrated workforce intelligence tools will continue to grow, pushing HCM providers to innovate rapidly and expand their capabilities.

Enterprises must recognize that HCM modernization is not just about choosing the right software—it is about building an adaptable, future-ready workforce. Business leaders must align their HCM investments with long-term strategic goals, ensuring that technology not only meets today’s workforce needs but is also equipped to support the future of work. Companies that continuously evolve their HCM strategies—leveraging AI, automation and data-driven insights—will gain a competitive edge in talent acquisition, employee engagement and workforce productivity.

This research provides a comprehensive assessment of talent suite software, evaluating how well providers align with enterprise needs and HR leadership expectations. By analyzing provider capabilities, innovation strategies and market positioning, this report equips organizations with the insights necessary to make informed technology decisions. As businesses navigate an increasingly complex HR landscape, investing in the right HCM technology will be critical for driving workforce transformation, improving operational efficiency and achieving long-term success.

The ISG Buyers Guide™ for Talent Suites evaluates software providers and products in key areas that support the management and administration of talent development and talent management experiences often found in the areas of recruiting, onboarding, learning, performance, and talent planning.

This research evaluates the following software providers that offer products that address key elements of talent suites as we define it: ADP, Cegid, Dayforce, HiBob, Infor, isolved, Oracle, PageUp, Paycom, Paycor, Paylocity, Rippling, SAP, UKG, Workday and Zoho.

This research-based index evaluates the full business and information technology value of Talent Suites software offerings. We encourage you to learn more about our Buyers Guide and its effectiveness as a provider selection and RFI/RFP tool.

We urge organizations to do a thorough job of evaluating Talent Suites offerings in this Buyers Guide as both the results of our in-depth analysis of these software providers and as an evaluation methodology. The Buyers Guide can be used to evaluate existing suppliers, plus provides evaluation criteria for new projects. Using it can shorten the cycle time for an RFP and the definition of an RFI.

The Buyers Guide for Talent Suites in 2025 finds Oracle first on the list, followed by SAP and UKG.

Software providers that rated in the top three of any category ﹘ including the product and customer experience dimensions ﹘ earn the designation of Leader.

The Leaders in Product Experience are:

• Oracle.
• SAP.
• UKG.

The Leaders in Customer Experience are:

• Oracle.
• ADP.
• UKG.

The Leaders across any of the seven categories are:

• Oracle, which has achieved this rating in seven of the seven categories.
• ADP in six categories.
• SAP, UKG and Workday in two categories.
• HiBob and Cornerstone in one category.

The overall performance chart provides a visual representation of how providers rate across product and customer experience. Software providers with products scoring higher in a weighted rating of the five product experience categories place farther to the right. The combination of ratings for the two customer experience categories determines their placement on the vertical axis. As a result, providers that place closer to the upper-right are “exemplary” and rated higher than those closer to the lower-left and identified as providers of “merit.” Software providers that excelled at customer experience over product experience have an “assurance” rating, and those excelling instead in product experience have an “innovative” rating.

Note that close provider scores should not be taken to imply that the packages evaluated are functionally identical or equally well-suited for use by every enterprise or process. Although there is a high degree of commonality in how organizations handle Talent Suites, there are many idiosyncrasies and differences that can make one provider’s offering a better fit than another.

ISG Research has made every effort to encompass in this Buyers Guide the overall product and customer experience from our Talent Suites blueprint, which we believe reflects what a well-crafted RFP should contain. Even so, there may be additional areas that affect which software provider and products best fit an enterprise’s particular requirements. Therefore, while this research is complete as it stands, utilizing it in your own organizational context is critical to ensure that products deliver the highest level of support for your projects.

You can find more details on our community as well as on our expertise in the research for this Buyers Guide.