Workforce Analytics Market Size & Insights:
The global workforce analytics market size was valued at USD 1.64 billion in 2018 and is projected to reach USD 5.97 billion by 2026, growing at a CAGR of 17.6% from 2019 to 2026.
Workforce analytics is an advanced suit of data analysis tools for wide-ranging workforce performance evaluation and improvement. It analyzes employment, staffing, training & development, employees, and compensation & benefits. Further, it also facilitates the analysis of standard ratios consisting of time, cost per hire, retention rate, time to start, add rate, accession rate, replacement rate, and offer acceptance rate. Workforce analytics is an all-inclusive phrase describing specifically to employees of an institute. It includes remote employees, freelancers, on-site employees, consultants, and any other people working in various positions in an organization.
The workforce analytics market trends include increasing use of data for strategic workforce planning, need to reduce the long-term labor issues, rise in need to spot the talent gaps from performance data, to achieve competitive advantage, to ensure employee satisfaction & engagement are the major factors that drive the growth of the market. However, consolidating all the available data from different sources, lack of analysis skills, concerns associated with data privacy and compliance are expected to hinder the workforce analytics market growth. On the contrary, AI based workforce analytics solutions, availability of huge volume of (Human Resource) HR data and increase in number of data sources, use of machine learning & blockchain technologies with workforce analytics are expected to provide lucrative opportunities for the market growth in the coming years.
The BFSI sector dominated the workforce analytics industry in 2018 and is projected to maintain its dominance during the forecast period, owing to the increase in demand for workforce from the banking and financial institutions. Furthermore, the retail & e-commerce sector is expected to grow at a significant CAGR during the forecast period, owing to the growing need to enhance employee skills in the retail & e-commerce industry.
By Component
Solution is projected as one of the most lucrative segments.
The report focuses on the growth prospects, restraints, and trends of the workforce analytics market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.
By Deployment Mode
On-premise is projected as one of the most lucrative segments.
Segment Review:
The workforce analytics market is segmented on the basis of component, deployment, organization size, industry vertical, and region. Based on component, the market is categorized into solution and service. On the basis of deployment, it is classified into on-premise and cloud. Based on the organization size workforce analytics market is bifurcated into large enterprises and SMEs. Depending on industry vertical, it is divided into BFSI, manufacturing, healthcare, government, retail, IT & telecom, education, and others. Based on region, it is analyzed across North America, Europe, Asia-Pacific, LAMEA.
By Organization Size
Large enterprise is projected as one of the most lucrative segments.
The company profiles of workforce analytics market players included in this report are Oracle Corporation, IBM Corporation, Tableau Software Inc, SAP SE, Workday Inc, ADP LLC, Cornerstone OnDemand Inc, Kronos Incorporated, WorkForce Software, LLC, and Visier Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By Industry Vertical
BFSI is projected as one of the most lucrative segments.
Top Impacting Factors:
Increase in investment on workforce analytics
Research studies demonstrated that the majority of enterprises will increase their use of big data in HR function or will start to use it if they aren’t already using it currently over the coming years. The several reasons for this increase include the use of data has become more evident in all functions, and the focus on workforce analytics simply reflects that overall trend. Since, human talent leads to competitive advantage in a knowledge economy, data analysis that can help organizations to attract, motivate and retain the right people is bound to interest executives. Most pointedly, companies have started to achieve measurable business outcomes through data analysis, encouraging others to increase investment on the workforce analytics to prevent losing out on potential gains.
Integration of advanced technologies such as machine learning, natural language processing and AI in workforce analytics
Use of natural language processing which is a branch of AI enables workforce analytics software to understand human language in written as well as spoken form. For instance, recruitment chatbot will facilitate the early interaction with applicants, right from asking for their resume & contact information, to asking screening questions about applicants’ knowledge, skills, and experience. It will also schedule an interview with a human recruiter. Thus, automated resume matching and fast-tracking the screening process by identifying the candidates with the best skills and education is made possible due to integration of AI and NLP with workforce analytics solutions which is expected to create lucrative opportunities for workforce analytics market.
By Region
Asia-Pacific would exhibit the highest CAGR of 20.10% during 2019-2026.
Key Benefits for Stakeholders:
- The study provides an in-depth analysis of the global workforce analytics market along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global workforce analytics market from 2019 to 2026 is provided to determine the market potential.
Workforce Analytics Market Report Highlights
| Aspects | Details |
 By Component |
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 By Deployment |
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 By Organization Size |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | SAP SE, Cornerstone OnDemand, Inc., Kronos Incorporated, ADP, LLC., Oracle Corporation, International Business Machines Corporation, Visier Inc., Workday, Inc., WorkForce Software, LLC., Tableau Software |
Analyst Review
The North America region is dominating workforce analytics market due to great awareness about enhancing productivity of diverse workforce spread across various business location of the large enterprises present in this region. In the current business scenario, there has been a substantial rise in the usage of the workforce analytics across various verticals such as IT & telecom, retail, BFSI, healthcare, and others. By integrating them with EPM or quality management solution in critical business processes of enterprises, they can increase the productivity and efficiency of their business.
Furthermore, cloud-enabled workforce analytics solution (SaaS model) is gaining high acceptance over the conventional on-premise workforce analytics in the developing economies. Moreover, workforce analytics is being implemented across large enterprises for the better management of their employees while offering improved productivity and optimizing revenue. With increase in focus of optimized utilization of the available talent sets in the organization, the adoption of workforce analytics by the businesses is expected to grow in the upcoming years. This subsequently fuels the growth of the workforce analytics market.
The global workforce analytics market companies are focusing on leveraging new technologies for offering intelligent workforce analytics to cater to the evolving end-user requirements. Key players have adopted various growth strategies to enhance and develop their product portfolio, garner maximum market share, and increase their market penetration. The market is witnessing new product launches and adopting AI by the leading players.
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