HR Gets Connected
Cutting-edge human resources (HR) departments are seeking to provide more services and benefits to their employee base by utilizing new technologies. In particular, cloud computing allows HR departments to streamline their workflow and conduct business more effectively. Investors should look at the technology companies enabling these changes.​

Chart for companies using the cloud for HR 

  • There is good reason for HR to modernize and migrate to the cloud. HR functions typically entail highly fragmented processes and technologies, be they for recruiting, tracking employee status, position, compensation, benefits or even training. Seamlessly combining the data across all of these programs leads to efficiencies and better employee experiences (and presumably higher retention).

  • Fully digital and cloud-based architecture can provide a unified database and consistent inter​​face that is accessible across an organization’s users.

  • Despite the perception that large companies may be leading the software revolution in HR, in reality it is many small- to mid-sized companies that are creating innovative solutions. Additionally, smaller companies are capitalizing on niche opportunities that larger companies are slow or late to recognize, or simply don’t consider worthwhile as a business opportunity.

The views expressed are the views of Fred Alger Management, Inc. as of May 2019. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

Risk Disclosure: ​Investing in the stock market involves certain risks, and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Technology companies may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies.

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