Learn what Human Experience Management (HXM) is, where it comes from, why companies are adopting it, and where to download a comprehensive HXM research report.

What Is HXM?

If you were to research the ancestry of HXM, you’d probably recognize what’s at the top of the family tree: Human Resources (HR).

As 20th-century workplaces evolved, HR added recruiting, hiring, attendance management, conducting performance reviews, and payroll. Eventually, the discipline had changed enough to justify redefining HR as Human Capital Management (HCM).

Gartner defines HCM as:

“A set of practices related to people resource management. These practices are focused on the organizational need to provide specific competencies and are implemented in three categories: workforce acquisition, workforce management, and workforce optimization.”

Moving down the family tree, in 2019, SAP redefined its HCM offering as Human Experience Management (HXM). Steve Hunt, Chief Expert at SAP, described the change as “significant with profound implications on how companies operate.”

“HXM is about the management of employee experience,” says Hunt, “or more specifically the beliefs, feelings, attitudes, and behaviors resulting from one’s job experiences.”

SAP defines HXM as:

“The next evolution of human capital management (HCM), providing organizations with the tools and technology to enable meaningful, productive, and personal employee experiences that drive business results.”

Why Do Companies Move From HCM to HXM?

Our comprehensive HCM and SAP S/4HANA – Benchmark Report, produced in partnership with WorkForce Software and SAP Insider, identified two primary reasons companies adopt HXM:

  • Demands for visibility into HR processes and employee engagement (31% of survey respondents)
  • Higher employee expectations for more tailored and user-friendly HR experiences (27% of survey respondents)

HXM Adoption Challenges

HCM systems have successfully managed HR operations but struggle to meet the needs of a modern, digitally empowered workforce.

However, transitioning from an HCM system to a more modern HXM platform can be challenging. These challenges are reflected in the survey findings as the gap between an organization’s desire to enhance user experiences and the planned adoption of an HXM system.

Cost was the biggest barrier, highlighted by 38% of respondents. 35% identified competing priorities, and 25% cited the complexity of transitioning from an HCM to an HXM system as a core concern.

Why Focus on HXM?

Forbes.com laid it out in simple terms:

“Companies that focus on employee experience succeed in attracting the best talent, have lower staff turnover rates, and realize higher productivity.”

But wait, there’s more. HXM systems can also offer benefits like:

  • Increased ability for HR staff to focus on strategic initiatives
  • Improved work culture from employee satisfaction with self-service tools.
  • Enhanced decision-making through comprehensive, accurate, real-time data and analytics

Download the Complete Report

Ready to dig into more HXM details?

Download our HCM and SAP S/4HANA – Benchmark Report, written in partnership with WorkForce Software and SAP Insider.

Rizing Gets HXM

We understand the evolving needs of HR leaders like you and offer tailored HXM solutions to maximize productivity, enhance employee satisfaction, and lower employee turnover. We’d love to chat about how our solutions can empower your organization.

Schedule a call today!