HR Analytics Market: Challenges and Opportunities

The global HR analytics market size was valued at USD 2.25 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.2% from 2020 to 2027.

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.

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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.