HR Analytics Market Growth & Trends
The global HR analytics market size is expected to reach USD 8.59 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 14.3% from 2022 to 2030. The increasing adoption of automation and digitization of HR operations to create agile and effective approaches is expected to drive the market demand over the forecast period. HR analytics enables businesses to assess the impact of people policies on their bottom line, detect future trends, and develop future skills. Implementing the latest technologies such as artificial intelligence (AI), advanced analytics, and Machine Learning (ML) helps in employee retention and engagement to enhance and improve HR operations, which is expected to fuel market growth.
The HR analytics solutions can handle tremendous amounts of data, which helps organizations to achieve an efficient recruiting process. Organizations can leverage advanced analytics to improve scouting talent, performance improvement recruiting, employee happiness, training, hiring and on-boarding, attrition, employee demographics, and retention. Better analytical capabilities emerge from more data collection and predictive analytics technology enables synchronous and real-time intervention, which is why businesses use analytics tools. They can shorten the time it takes for recruiters to review and sort through a large number of resumes. These benefits provided by HR analytics will supplement the growth of the market during the forecast period.
HR analytics solutions and services ease complex compensation planning, allowing businesses to improve budget allocations and support compensation decisions while adhering to organizational guidelines. Furthermore, organizations all over the world are establishing a digital workplace that allows for flexibility, mobility, and the use of modern communication tools. For instance, in February 2019, Infor, an enterprise software company, announced a partnership with Montage, an HR analytics solutions provider, to engage, interview, and hire the best candidates. With this partnership, both the companies would offer predictive talent analytics and interviewing technology for the hiring process. This will help organizations in better decision-making and maximizing their capital, which is subsequently accelerating the growth of the market.
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HR Analytics Market Report
HR Analytics Market Report Highlights
- The talent analytics solution segment is expected to witness the fastest growth over the forecast period. The segment growth can be attributed to the need for businesses to attract the right talent with the help of technologies such as artificial intelligence, machine learning, and deep learning
- The support and maintenance service segment is expected to register a significant CAGR of 17.4% during the forecast period. The demand for this service is expected to rise due to the growing need for timely system patching and security updates
- The hosted deployment segment is expected to register a lucrative CAGR of 17.3% during the forecast period. It enables businesses to access data from any connected device at any time, expanding the scope for customization and enabling the implementation of analytical tools across multiple business channels. These advantages will contribute to the segment’s growth over the forecast period
- By enterprise size, the SMEs segment is expected to register a lucrative CAGR of 16.0% during the forecast period. With the help of HR analytics, SMEs can control their solutions across multiple geographies and manage multiple employees. At the same time, they can build on their existing strengths to enhance employee satisfaction and workplace culture in the long run. These benefits will further drive the demand for HR analytics solutions among SMEs during the forecast period
- The retail end-use segment is expected to expand at a significant CAGR of 16.9% during the forecast period. Companies in retail are experimenting with new ways to gain remote access to their assets, customers, resources, and required data by utilizing various IT services. This has undoubtedly increased the rate of adoption of HR analytics solutions
- Asia Pacific is expected to witness lucrative growth over the forecast period. The increase in the number of automation initiatives being conducted to improve organizational productivity and the presence of a skilled and large labor force is estimated to drive the demand for HR analytics solutions in the region
