Workforce analytics market is predicted to proliferate
during the forecast period due to the increasing adoption of cloud-based
workforce analytics solutions, especially in developing countries by
enterprises to overcome the growing complexity along with the development of
more enhanced human resource management. Workforce analytics can help
organizations identify trends and patterns in employee behavior, performance,
and engagement. By understanding these patterns, organizations can make better
decisions about how to allocate resources and improve employee productivity. It
allows businesses to reduce turnover, increase efficiency and manage data
spread across several sites while enhancing performance, dependability, and
scalability.
Additionally, the increasing uptake of
Artificial Intelligence (AI) and Machine Learning (ML) in workforce analytics
is increasing the demand for the global workforce analytics market. In an
effort to compensate for the losses in complexity systems, businesses are increasingly
utilizing workforce analytics services to provide effective talent management,
payroll activities, and increasing workforce capability in people management.
Numerous innovations and product launches carried out in analytics are expected
to enhance the features of workforce analytics. This, in turn, is expected to
drive market growth during the forecast period.
The process of employing data analysis to enhance
workforce management and decision-making is known as workforce analytics. The
practice measures the impact of workforce behavior and related factors on
overall business performance. In order to gather insights on workforce trends
and habits, it uses data from a variety of sources, including HR systems,
performance management tools, and employee surveys. To achieve business goals,
HR leaders are integrating technology and business insights in which staff
analytics plays an essential component. The workforce analytics market is
becoming more widespread as more organizations recognize its value.
Workforce analytics is utilized for recruitment and talent management, employee
retention, employee experience, employee performance, and training and
development. The main purposes of workforce analytics are to identify the need
for new departments and positions and predict the probability of an individual
employee's success.
In addition to conventional ratios such as time to
fill, cost per hire, time to start, offer acceptance rate, accession rate,
retention rate, add rate, and replacement rate, it evaluates hiring, staffing,
training and development, personnel, compensation, and benefits. These
workforce analytics are generally used in enhancing workforce reporting,
evaluating KPIs, collecting data, providing transparency to the workforce, etc.
Increasing Adoption of AI and Machine Learning in
Workforce Analytics
Future-ready organizations are continuously redefining
the talent they seek as a result of quickly evolving technology and an
increased emphasis on developing digital skills. Nowadays, there are enormous
amounts of data available on employees. This data includes everything from
performance reviews and demographic information to social media activity and
email communications. To understand this data and find significant patterns and
links, organizations require the aid of AI and machine learning. The
integration of AI and machine learning are aiding enterprises to automate a
variety of workforce analytics-related operations and reducing the number of
manual tasks that employees need to complete. Real-time insights regarding
employee performance, engagement levels, work happiness, career goals, training
requirements, and other topics may be gathered using systems that are
AI-enabled.
Moreover, AI algorithms are even capable of
forecasting results for hiring, learning and development, and staff retention.
For instance, a recent study by the World Economic Forum projects that by 2025,
75 million jobs worldwide will be automated by AI. Moreover, according to IBM
Global AI Adoption Index 2022, in 35% of cases, enterprises reported employing
AI in their operations, while 42% said they are investigating it in other
cases. The advancement in technologies is aiding in replacing and upgrading
workforce analytics enabling the enhancement of manual systems, and constantly
balancing the overall management between employees and employers to maintain
workforce stability. Therefore, the increasing adoption of AI and machine
learning in workforce analytics is propelling the growth of the global
workforce analytics market in the forecast period.
Growing need for Organizations to make Data-driven
Decision Making (DDDM)
The need for real-time insights and predictions to
optimize performance has highlighted the requirement for Data-driven Decision
Making (DDDM). Traditionally human resources have relied on intuition and
experience while making decisions, which has led to biases and suboptimal
outcomes. To overcome the biases and make the best managerial rulings that are
aligned with their strategies, data-driven decision-making organizations can
use data to make informed and verified decisions by using the right KPIs and tools.
However, companies, such as Amazon, Walmart, Southwest Airlines, and Netflix,
are implementing data-driven decision-making algorithms to increase retention
rates by identifying high-performing employees and potential future leaders,
enabling them to manage better and develop their talent and stay competitive.
Moreover, many enterprises are integrating data-driven
based decision-making HR analytics for numerous benefits such as improved
decision-making, better talent management, reduced turnover, enhanced employee
engagement, etc. Thus, the growing need for organizations to make Data-driven
Decision Making (DDDM) is driving the global workforce analytics market.
Increasing Adoption of Cloud-Based Workforce Analytics
Solutions
Cloud services growing importance and accessibility
for the HR function gives businesses the possibility to accomplish more with
less, faster, more affordably, and with more flexibility. Businesses can use
cloud platforms more frequently to make their IT operations adaptable, scalable,
and agile as the globe transitions to a hybrid future. As cloud-based systems
do not require hardware infrastructure to operate, it provides an edge to
enterprises to adopt a wide range of standards for seamlessly and
cost-effectively implementing, managing, and delivering new business models on
the cloud. The integration of the cloud is assisting in the creation of new HR
opportunities for matching and continually improving HR processes in accordance
with business demands by luring in new talent, enhancing the abilities of
present employees, and coordinating personnel with new procedures and
technology. In addition, cloud-based workforce analytics solutions provide the
opportunity for HR/Talent functions to adapt to changing business needs
dramatically and quickly. For instance, according to International Data
Corporation (IDC), technology adoption within the print infrastructure has
changed since the onset of the COVID-19 pandemic. Around 46% of businesses are
seeking to move to cloud-based printing and print management in the near
future.
Additionally, by 2025, the cloud will replace
on-premises infrastructure as the principal place where operational data is
stored, managed, and analyzed for 65% of A2000 organizations. Furthermore, the
users can access consistent employee information that are freeing HR from
administrative tasks. Moreover, organizations can now embrace the complete
range of talent management programs and optimize the value of HR data to
cloud-based core HR solutions and talent management systems. Therefore, the
increasing uptake of cloud-based workforce analytics solutions is attributed to
the growth of workforce analytics in the global market.
Recent Advancements
- On Jan 24, 2023, Awareness Technologies, Inc. one
of the parent companies of Veriato announced the launch of Veriato’s
workforce behavior analytics software in India in partnership with
Sectonics. Veriato offers modern workforce behavior analytics solutions
with advanced technology and artificial intelligence (AI) to help employers
track employee behavior and maintain company security with far more
control than typical monitoring software.
- On Oct 07, 2022, Braincourt, a German service
provider of business intelligence and data science announced the share
purchase agreement (SPA) to acquire by Capgemini. The acquisition will
bolster Capgemini's in-demand data and analytics capabilities in Germany
and Northern Europe. The company has developed a reputation for having
industry-leading skills in business intelligence, data science, and advanced
project management services, especially within the governing domains of
crucial business activities including finance, HR, manufacturing, and
logistics.
- On Oct 17, 2022, Frontline, the Pennsylvania
ed-tech company announced the release of its analytics tool to assist with
decisions for staff management. The new tool for K-12 administrators will
give administrators interactive dashboards and guided analysis of metrics
to help them make data-informed decisions about hiring, professional
development, and absence and substitute placements.
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Market Segmentation
The global workforce analytics market is segmented by
component type, deployment type, organization size, and end-use industry. Based
on component type, the market is segmented into Solutions and Services. The
solution segment is further bifurcated into talent acquisition and development
optimization services and payroll and monitoring. The service segment is
divided into professional services and managed services. Based on deployment
type, the market is bifurcated into Cloud and On-premises. Based on
organization size, the market is segmented into small- and medium-sized
enterprises and large enterprises. Based on the end-use industry, the market is
segmented into BFSI, manufacturing, IT & Telecom, healthcare, retail, and
others. The market analysis also studies the regional segmentation to devise
regional market segmentation, divided among North America, Europe,
Asia-Pacific, South America, and the Middle East & Africa.
Company Profiles
Automatic Data Processing Inc., Workday Inc., IBM
Corporation, Cornerstone OnDemand Inc., Accenture Plc, Kronos Incorporated,
Oracle Corporation, SAP SE, Workforce Software, LLC, and Cisco Systems Inc. are
among the major players that are driving the growth of the global workforce
analytics market.
|
Attribute
|
Details
|
|
Base
Year
|
2022
|
|
Historical
Years
|
2018 –
2022
|
|
Estimated
Year
|
2023
|
|
Forecast
Period
|
2024 – 2028
|
|
Quantitative
Units
|
Revenue
in USD Billion and CAGR for 2018-2022 and 2023E-2028F
|
|
Report
Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
|
By Component
Type
By Deployment
Type
By Organization
Size
By End-User
Industry
By Region
|
|
Regional
Scope
|
Asia-Pacific,
North America, Europe, Middle East & Africa, and South America
|
|
Country
Scope
|
China, Japan, India, Australia, South Korea, United States,
Canada, Mexico, United Kingdom, Germany, France, Spain, Italy, Qatar, South
Africa, Saudi Arabia, UAE, Brazil, Argentina, Colombia
|
|
Key
Companies Profiled
|
Automatic
Data Processing Inc., Workday Inc., IBM Corporation, Cornerstone OnDemand Inc.,
Accenture Plc, Kronos Incorporated, Oracle Corporation, SAP SE, Workforce
Software, LLC, and Cisco Systems Inc.
|
|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail customized
purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf format
on special request)
|
Report Scope:
In this report, the global workforce analytics market has been segmented
into the following categories, in addition to the industry trends which have
also been detailed below:
·
Global Workforce Analytics Market, By Component Type:
o
Solutions
§ Talent Acquisition
and Development Optimization Services
§ Pay Roll and
Monitoring
o
Services
§ Professional
Services
§ Managed Services
·
Global Workforce Analytics Market, By Deployment Type:
o
Cloud
o
On-premises
·
Global Workforce Analytics Market, By Organization
Size:
o
Small- and Medium-Sized Enterprises
o
Large Enterprises
·
Global Workforce Analytics Market, By End-User
Industry:
o
BFSI
o
Manufacturing
o
IT & Telecom
o
Healthcare
o
Retail
o
Other
·
Global Workforce Analytics Market, By Region:
o
Asia-Pacific
§ China
§ Japan
§ India
§ Australia
§ South Korea
o
North America
§ United States
§ Canada
§ Mexico
o
Europe
§ United Kingdom
§ Germany
§ France
§ Spain
§ Italy
o
Middle East & Africa
§ Qatar
§ South Africa
§ Saudi Arabia
§ UAE
o
South America
§ Brazil
§ Argentina
§ Colombia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present
in the global workforce analytics market.
Available Customizations:
With the given market data, TechSci Research offers customizations
according to a company’s specific needs. The following customization options
are available for the report:
Company Information
Detailed analysis and profiling of additional market players (up to
five).
It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]