How Much Revenue HR Analytics Market Will Generate Globally Till 2027?

Posted by Mrudula Anil Karmarkar on January 25th, 2022

The global HR analytics market size is anticipated to reach USD 6.29billion by 2027, registering a CAGR of 14.2% from 2020 to 2027, according to a new report by Grand View Research, Inc. HR analytics involves business analytics and data mining solutions, which examines data created from various HR activities such as employee acquisition, attendance, performance management, engagement, training, and compensation. The HR analytics helps in increasing the productivity of HR functions by predicting important parameters such as performance, retention, and recruitment with the help of data generated. All these factors are contributing to the market growth.

Technological proliferation in the field of Machine Learning (ML), big data analytics, Artificial Intelligence (AI), and Internet of Things (IoT) is expected to positively impact the market growth. Analytics solutions test the efficacy of HR policies and enable simplification of various HR policies. It includes data cleansing, data collection, data management, visualization, and forecasting tools. It correlates and integrates data to provide appropriate, actionable, and timely insights to improve performance leading to more relevant decisions and correct actions.

HR analytics solutions and services enables complex compensation planning and allow enterprises to enhance budget allocations and support compensation decisions within the organizational guidelines. Furthermore, organizations around the globe are forming a digital workplace that allows flexibility and mobility, high productivity, and uses modern communication tools. This business shift from traditional systems to digital HR is playing a major role in the centralization of HR data, thus allowing for easy access of data to deploy analytics solutions. Hence, companies are providing comprehensive HR analytics solutions for all HR functions alongside with analytics capabilities.

Growing need to employ skilled talent and enhance employee retention with the help of innovative technologies such as Internet of Things (IoT) and analytics is projected to push the market growth. With the help of these solutions, the companies can focus more on improving employee engagement, easy employee on-boarding, and increasing workforce efficiency. These analytical solutions allow HR professionals to manage, attract, and retain employees, which can subsequently lead to an increased Return on Investment (ROI) for the organization, help in improving productivity, and provide a better work environment.

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Over the last decade, there is a vast amount of workforce data available with the organizations, which, if used well, can lead to significant conclusions pertaining to an organization’s decisions. Rapid technological advancements in the fields of analytics and availability of workforce data have resulted in many organizations applying these technologies in their business processes. Recruiting and training employees is an expensive process and if the employee leaves the organization without serving for a significant period it becomes a loss for the organization. Hence, employee retention, talent management, and succession planning, among others have become critical factors for improving the overall organizational performance. The use of HR analytics helps organizations in better decision-making and maximizing their capital, which is subsequently accelerating the growth of the HR analytics market.

HR Analytics Market Report Highlights

• The talent analytics solution is anticipated to grow at a faster pace, owing to the need for companies to attract the right talent in their organization with the help of technologies such as artificial intelligence, machine learning, and deep learning
• The support and maintenance segment is expected to expand at the highest CAGR from 2020 to 2027. The demand for is expected to grow on account of increasing need for timely maintenance for system patching and security updates
• The demand for hosted deployment segment is expected to increase over the forecast period as these solutions are cost-effective, which allows convenient and easy download and storage of data over cloud
• The Small and Medium Enterprises (SMEs) segment is expected to register the highest growth during the forecast period. These days, the SMEs are focusing on utilizing the HR analytics solution to work globally and multi-regional workforce
• The retail segment is expected to emerge as the fastest growing end-use segment from 2020 to 2027. The retail industry employs a unique blend of full-time employees, part-time staff, contractual workers, and multi-regional stakeholders across distribution networks
• Asia Pacific is anticipated to grow at a significant rate during the forecast period, owing to the rapid digitization initiatives taken by the governments in the region
• The key players in the HR analytics market include IBM Corporation; Kronos Incorporated; MicroStrategy Incorporated; Oracle; SAP SE; Sage Software Solutions Pvt Ltd; Talentsoft, TABLEAU SOFTWARE; Workday, Inc.; and Zoho Corporation Pvt. Ltd.

Although the HR analytics offers several benefits such as cost-effectiveness and ease of deployment, among others, security concerns pose a threat to the market growth. Small and Medium Enterprises (SMEs) are increasingly adopting public cloud services due to its low cost, thus increasing the possibility for data breaches, cyber-attacks, and so on. Hence, the security issues related to using cloud service is the major challenging factor hindering the adoption of HR analytics. However, if efforts are made between HR management teams and IT teams to agree upon a set of technical controls then this could result in the prevention of cyber-attacks and data loss.

Some of the prominent players in the HR analytics market include:

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

Grand View Research has segmented the global HR analytics market based on solution, service, deployment, enterprise size:

HR Analytics Solution Outlook (Revenue, USD Million, 2016 - 2027)

• Employee Engagement & Development
• Payroll & Compensation
• Recruitment
• Retention
• Talent Analytics
• Workforce Planning
• Others

HR Analytics Service Outlook (Revenue, USD Million, 2016 - 2027)

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

HR Analytics Deployment Outlook (Revenue, USD Million, 2016 - 2027)

• Hosted
• On-premise

HR Analytics Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

• Large Enterprise
• Small & Medium Enterprise

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.