HR Analytics Market Organization Segment Trends, PEST Analysis and Forecast

HR Analytics Industry Overview

The global HR analytics market size was valued at USD 2.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.3% from 2022 to 2030. The growing need to efficiently use human resources, reduce operational costs in an organization, and gain real insights into employee behaviors is a key factor driving the market. Despite the fact that the COVID-19 pandemic has changed the business landscape, the use of HR analytics solutions to make data-driven decisions has become critical for monitoring and measuring organizational and employee productivity. It has triggered a significant paradigm shift, requiring organizations to handle social distancing and deploy remote working, which has become vital to address the crisis with resiliency and maintain long-term company viability. Thus, COVID-19 is expected to permanently shift working patterns as companies are forced to embrace remote working, thus increasing the demand for workforce management solutions.

The growing need to employ skilled talent and improve employee retention using innovative technologies, such as the Internet of Things (IoT) and analytics, is expected to drive the market. For instance, in April 2020, ASDA, a supermarket chain in the U.K., selected Workday, an enterprise cloud application platform for finance and human resources, to enhance its employee experience and support the global workforce with the help of  Workday Absence Management, Workday Benefits, Workday Compensation, Workday Learning, Workday Prism Analytics, and Workday Human Capital Management (HCM). The adoption of solutions enables companies to improve employee engagement, facilitate employee onboarding, and increase workforce efficiency. Further, these solutions enable HR professionals to attract and retain employees, resulting in a higher Return on Investment (ROI) for the organization, improved productivity, and a better work environment.

Gather more insights about the market drivers, restraints, and growth of the Global HR Analytics Market

The demand for effective workforce management and recruitment is driving the market forward. Several companies use third-party talent acquisition platforms. As a result, vendors are increasingly adopting new technologies. Organizations are turning to technology-based solutions and services to meet their talent acquisition needs. Many of these solutions are cognitive in nature, based on mobile and cloud technology. Cognitive technologies including artificial intelligence (AI), robotic process automation, natural language processing, and predictive algorithms collect data from social networks and then provide actionable insights. The use of these technologies assists organizations in making better decisions and maximizing their capital, which is accelerating the growth of the market.

Technological advancements in Machine Learning (ML), big data analytics, Artificial Intelligence (AI), and the Internet of Things (IoT) are expected to boost the market growth. These technologies correlate and integrate data to provide relevant, actionable, and timely insights to improve performance, ultimately leading to better decisions and actions. For instance, ML enables employers to predict which candidates will perform best, assisting HR management in recruitment and retention processes. Furthermore, it connects and integrates data to deliver relevant, actionable, and timely insights to improve performance, ultimately leading to better decisions and actions. These benefits will supplement the growth of HR analytics solutions during the forecast period.

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HR Analytics Industry Segmentation

Grand View Research has segmented the global HR analytics market based on solution, service, deployment, enterprise size, end-use, and region:

HR Analytics Solution Outlook (Revenue, USD Million, 2017 - 2030)

• Employee Engagement & Development
• Payroll & Compensation
• Recruitment
• Retention
• Talent Analytics
• Workforce Planning
• Others (Applicant Tracking System and Succession and Leadership Planning)

HR Analytics Service Outlook (Revenue, USD Million, 2017 - 2030)

• Implementation & Integration
• Support & Maintenance
• Training & Consulting

HR Analytics Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• Hosted
• On-premise

HR Analytics Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

• Large Enterprise
• Small & Medium Enterprise (SME)

HR Analytics End-use Outlook (Revenue, USD Million, 2017 - 2030)

• Academia
• BFSI
• Government
• Healthcare
• IT & Telecom
• Manufacturing
• Retail
• Others (Government, Transportation & Logistics, Energies & Utilities, Travel and Hospitality, and Media and Entertainment)

HR Analytics Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
• Europe
• Asia Pacific
• Latin America
• MEA (Middle East & Africa)

Market Share Insights:

June 2022: Visier Inc., a Canadian-based HR analytics platform company, announced the partnership with symplr, a healthcare operations solutions provider, to allow Visier’s people analytics capabilities to embed Visier's people analytics capabilities within Symplr's Recruiting to create a talent analytics feature.

October 2020: Tata Consultancy Services (TCS) launched TCS Workforce Analytics, an Artificial Intelligence (AI)-based unified system of engagement and insights for managers and employees, which enhanced the productivity and workforce experience.

Key Companies profiled:

Some prominent players in the global HR Analytics Industry include

• IBM Corporation
• MicroStrategy Incorporated
• Oracle
• SAP SE
• UKG Inc.
• Cegid
• TABLEAU SOFTWARE, LLC
• Sage Software Solutions Pvt. Ltd.
• Zoho Corporation Pvt. Ltd.
• Workday Inc.

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