The HR analytics market is projected to grow from US$ 2.9 Bn in 2020 to US$ 10.5 Bn by 2031, at an expected CAGR of 20.2% during the forecast period 2021-2031. As there are so much advancement in technology and cloud computing, organizations can guide themselves for decision-making and drive organizational success with the help of data sources available.
Human Resource analytics (HR Analytics) is defined as a process, where organization can improve employee performance and employee retention. The process deals with the analysis of people within the organization and applies process of analytical to the human capital.
The sole aim of HR analytics is to provide employee turnover rate and better insight into each of the human resource processes. There is an increase in need for reducing the costs associated with HR processes and streamline the HR processes, this need is driving the growth of HR analytics market globally.
What is Driving Demand for HR Analytics Market?
Organizations are realizing an array of benefits of HR analytics services and focusing on it to improve their workforce planning. With the help of HR analytics services, HR departments of organizations are making better decisions based on their data.
The process is also helping the enterprises to find the best practices for recruitment, retention, and employee engagement. Overall experience of employee and engagement are improved in a better manner with HR analytics. Such factors are driving the growth of HR analytics services globally.
Enterprises are able draw out the conclusions based on the analysis and analyze the HR data from various HR systems and with the help of HR analytics. There is an increase in need for reducing the operational cost and improving the efficiency in an organization, this too will help the HR analytics market to grow.
Enterprises can create metrics for full workforce performance improvement and promote workforce optimization with the help of HR analytics, this is likely to drive the growth of HR analytics across various verticals.
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What are the Key Trends for HR Analytics Market?
There are many challenges faced by financial industry related to the HR department. The challenge is to keep the workforce updated to the maintaining payroll, compliance, workforce aging among others. Financial industries struggle in attracting talent, engaging the existing employee, and optimizing the performance.
Such industries can use cloud computing tools such as HR analytics to act on the human resources (HR) data. They can work on building a digital representation to drive personalized insights on social media platform like LinkedIn for each employee. Trends like theses will help the HR analytics market to grow.
Cloud-based HR analytics helps organizations to avoid the costs related to software, storage, and technical staff. Organizations can use cloud-based solutions with limited budget as the enhanced speed and scalability are offered by the cloud deployment model.
Small and Medium-sized Enterprises (SMEs) and large enterprises are focusing on their core competencies, rather than IT processes with the help of the implementation of cloud-based HR analytics. This trend of the cloud deployment is likely to drive the growth of HR analytics across various verticals.
North America Demand Outlook for HR Analytics Market
The North America region is expected to register the highest market share in the HR analytics services and solutions. The region is more advanced hub for technological innovations. North America is also an early adopter of new advanced technologies.
Industries in the region are focusing on implementing the best practices for HR operations and improving their workforce efficiency. The global market of HR analytics solutions is currently dominated by North America as most of the key players located in the region have a solid competition among the new players. This factor will also support the demand for the adoption of HR analytics in the region.
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Europe Demand Outlook for HR Analytics Market
All the major small or large enterprises in finance, retail and IT & Telecom are moving towards the adoption of HR analytics solutions to avoid the costs related to software, storage, and technical staff. The growing demand for promoting workforce optimization in Europe through HR analytics has opened new growth avenues for market growth.
The key factor for driving the HR analytics market in Europe region is presence of major industry players. Enterprises in the region has shown a keen interest in implementing HR analytics solutions and they are investing in advanced and new technologies on a large scale. Such factors will drive the growth of HR analytics in upcoming years
Who are the Key HR Analytics Market Vendors?
Some of the leading vendors of HR analytics include
Oracle
SAP
Infor
Workday
Sage Software
Kronos
MicroStrategy
IBM
Tableau
Zoho
Crunchr
Visier
TALENTSOFT
GainInsights
Sisense and others.
These vendors have adopted various key strategies, to increase their customer base locally and globally. They are also spending millions of dollars into product R&D to fulfill the unmet needs of their customers for HR analytics services.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
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