Workforce Analytics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Workforce Analytics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Workforce Analytics market was valued at USD 765.72 million in 2020 and is expected to reach USD 1831.13 million by 2026, at a CAGR of 15.64% over the forecast period 2021 - 2026. According to Information Services Group, 58 % of enterprises indicated that HR SaaS technology solutions were expected to improve the employer user experience globally. This creates a positive impact on the market globally.

• Workforce analytics is used to study the behavior of employees and people data using analyze people data to make better workforce decisions. This helps in increasing the productivity of the existing employees, instead of hiring additional staff, and on improving the selection criteria.
• In this globalized world, the organization requires flexibility, speed and innovation, and talent to differentiate itself from other firms. It has let to focus on workforce strategy and on the investment done on employees to support business growth and objectives. For instance, - Mindtree used HR analytics tools widely in turnover modeling, risk assessment and management profile and productivity index. HR analytics tools have helped them predict employee turnover for the subsequent 90 days and enabled them to create usable insights from data analyses that used into the forecasting model for the hiring teams.
• However, due to the lack of product information and high cost of deployment are few factors which are restraining the market from growing in the forecasted period.

• According to a survey by the World Economic Forum, 85 % of respondents stated they are likely to adopt user and entity big data analytics by 2022. Increase in the implementation of big data analytics and artificial intelligence contributing to the growth of the workforce analytics market.
• Further, with market dynamics changing quickly, real-time talent decisions are the need of the hour. Human capital is the asset of any organization, and employee performance has a significant impact on the bottom line. Thus monitoring their employee's performance gives a clear picture of what parts of their performance need improvement and which sections are meeting or exceeding expectations. For example, India's leading IT services companies, Tata Consultancy Services, and Infosys, have shifted to a continuous performance system. By doing so, these two organizations believe that they will be able to monitor employee performance at regular intervals and predict their behavior, which could affect their engagement levels.
• Monitoring performance data also helps to evaluate how effectively managers are engaging their employees to set expectations, clarify doubts, plan improvement, and address performance anxieties. For example, - Google is utilizing HR analytics for their talent management activities. Their Project Oxygen analyzed their internal data to quantify what active managers do. They developed a management training program that consolidated eight behaviors, which led to better managerial quality.
• Therefore, the above factors are assumed to boost the workforce analytics in performance monitoring market during the forecast period.

• The Asia-Pacific region is expected to witness the fastest growth during the forecast period because of the shift towards more employee-centric organizations. The companies are focusing on their employees to gain competitive advantages in the region. Therefore they are implementing the workforce analytics so that they get a clear picture of the internal framework.
• Moreover, the government's initiative, such as Startup India, to encourage entrepreneurship within the country, is also driving the market. The Workforce analytics will help the organization to make fact-based HR decisions. Therefore, creating a positive impact on the market.
• All the above factors are expected to drive the workforce analytics market in the mentioned region.

The workforce analytics market is highly competitive. Many multinational companies such as IBM Corporation, Oracle Corporation, Accenture, and Capgemini SE are few of the major players. Rising demand for better structures for talent and recruiting functions is creating an immense opportunity among SME and Large enterprises, and thus, companies are seeing a bright future. Some of the recent developments are:

• March 2019 - Oracle Corporation released an updated version of Oracle HCM cloud to make work simpler, smarter, and more agile. This updated version offered an enhanced experience to users, such as candidates, recruiters, HR professionals, managers, and employees.
• February 2019 - Infor partnered with Montage, a provider of HR analytics solutions. This partnership would offer the next generation of predictive talent analytics and interviewing technology for the hiring process by leveraging the capabilities of their respective platforms.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support