HR Analytics Market Size
HR analytics market was worth USD 3.7 billion in 2023 and is expected to register a CAGR of more than 13% during the period from 2024 to 2032. The market is spurred by the growing need for talent retention and succession planning within organizations. HR analytics optimizes HR functions, cutting down recruitment expenditure and enhancing workforce productivity. Through the analysis of data, companies can efficiently allocate their resources and yield a greater return on investment (ROI). Due to evolving labor laws and regulations, organizations must comply with different HR-related legal demands.
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For example, the general data protection regulation (GDPR) is an EU regulation to safeguard the right to privacy of individuals. The regulation is for companies that harvest and process data pertaining to people living in the EU, no matter where the company is. HR analytics software can help achieve compliance with such labor laws and regulations, therefore, driving market growth and popularity.
HR analytics can identify at-risk employees who are likely to leave the organization and identify potential successors for critical positions. These insights allow for developing strategic interventions to retain these employees and engage them to improve motivation as well as succession plans that enable the organization to have the right talent on board to address its future demands. One research conducted by the Society for Human Resource Management reported that organizations making use of HR analytics are most likely to possess successful succession planning. The same research revealed that such organizations were less likely to face unplanned turnover.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| HR Analytics Market Size in 2023 | USD 3.7 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 13.4% |
| 2032 Value Projection | USD 11.1 Billion |
| Historical Data for | 2018 – 2023 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 375 |
| Segments covered | Component, Application, Enterprise Size, Deployment Model, Industry Vertical |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
Yet, organizations with complex workforce compositions, various locations, and different HR practices tend to struggle in consolidating and analyzing data. Furthermore, the lack of standard HR metrics and benchmarks made it hard to compare HR analytics outcomes across various organizations and industries.
COVID-19 Impact
The pandemic of COVID-19 significantly influenced the HR analytics market, redefining organizational methods of working and making decisions. As work-from-home became a new normal, HR analytics helped track employee productivity and wellness. Organizations demanded insights into worker engagement, mental well-being, and performance to suit policy modifications and strategies. LinkedIn indicated a 122% surge in job postings demanding HR analytics talent, signaling a growing need for data-driven HR professionals. The pandemic expedited the use of HR analytics, further establishing its significance in overcoming workforce challenges during unprecedented times.
HR Analytics Market Trends
Organizations undergoing transformation of HR are using HR analytics to facilitate their change management processes by allowing decision-making based on data throughout the transformation process. In 2022, Accenture launched a new global HR analytics practice aimed at assisting companies in utilizing data to enhance their workforce strategy. The practice will concentrate on assisting businesses in talent hiring, performance management, and employee engagement. Besides that, the existence of advanced analytics software, machine learning models, and artificial intelligence has made it easy for HR analytics to expand.
HR Analytics Market Analysis
Learn more about the key segments shaping this market
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The HR analytics market is segmented into two broad categorieson-premise and cloud-based. On-premise solutions held a massive 61% market share in 2023. Why? Security and ControlCompanies prefer to have their sensitive employee data locked away, right within their own systems. This ensures privacy law compliance and provides them with full control over who accesses and stores that data. Processing Speed of DataOn-premises solutions process data quicker since they don't depend on public internet connections, which at times can be untrustworthy. Consider Pfizer. In 2022, they selected an on-premises HR analytics solution to provide them with greater control over their employee compensation and benefits program.
Learn more about the key segments shaping this market
The IT & Telecom segment held a market share of 23% in 2023. The demand for HR analytics across the IT & telecom sector is driven by the need to attract and retain top tech talent, optimize workforce productivity, and enhance employee experience. Analyzing data helps identify skill gaps, assess employee performance, and align talent development strategies. For instance, companies like Cisco have used HR analytics to gain insights into employee mobility, leading to improved workforce planning and talent retention strategies.
Looking for region specific data?
Hi! Buckle up for some thrilling news in the world of HR analytics. The North American market is going to boom in the next few years, and this is why1. Fact-Based DecisionsNorth American companies are all about making fact- and number-based decisions. HR analytics provides them with the means to do so. 2. Technologically Advanced BusinessesNorth American businesses are at the forefront of technology. HR analytics fits right in with their contemporary do-things. 3. Intelligent Talent ManagementOrganizations are aware that HR analytics will enable them to acquire and retain top performers. It's a superpower to develop a cohesive team. 4. Happy Employees, Happy BusinessHR analytics enables companies to interact with their employees and make them feel appreciated. And, surprise, surprise, happy employees translate into a happy business! For instance, a large corporation such as IBM employed the use of HR analytics to understand what was happening to their employees. They discovered who could be rockstars and went even further to establish special training programs for them. The outcome? Improved business, satisfied employees.
HR Analytics Market Share
Major players operating in the HR analytics industry are
- SAP SE.
- Infor
- Cegid
- IBM Corp.
- Visier, Inc.
- Konor
- Oracle Corp.
- Sage Software Solutions Pvt. Ltd.
- Sisense Inc.
- Tableau Software, LLC.
- UKG Inc.
- Zoho Corp. Pvt. Ltd.
- MicroStrategy Inc.
These companies are focusing on strategic acquisitions to enhance their capabilities. For instance, In February 2023, IBM acquired Kenexa. This acquisition will allow IBM to integrate Kenexa's HR analytics platform with its other HR solutions, giving customers a more holistic view of their workforce.
HR Analytics Industry News
- In July 2022, SAP acquired Qualtrics to expand its HR analytics capabilities and provide customers with a more personalized experience.
The HR analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2018 to 2032, for the following segments
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Market, By Component
- Solution
- Services
- Implementation & integration
- Support & maintenance
- Training & consulting
Market, By Application
- Employee engagement & development
- Payroll
- Recruitment
- Retention
- Talent analytics
- Workforce planning
- Others
Market, By Enterprise Size
- Large enterprises
- SMEs
Market, By Deployment Model
- On-premises
- Cloud
Market, By Industry Vertical
- BFSI
- IT & telecom
- Retail
- Healthcare
- Education
- Manufacturing
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Latin America
- Brazil
- Mexico
- MEA
- South Africa
- UAE
- Saudi Arabia
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