HR Analytics Market

HR Analytics Market – Overview

The global HR analytics market is projected to witness significant growth from 2021 to 2031 (forecast period). HR analytics entails business analytics and data mining solutions that analyze data generated by various HR activities such as employee acquisition, training, attendance, engagement performance management, and remuneration. HR analytics aids in boosting the productivity of HR activities by anticipating crucial characteristics such as performance, retention, and recruiting using data gathered. These factors are expected to propel the global HR analytics market during the forecast.

Moreover, the increasing adoption of HR analytics among small and medium-sized organizations to make data-driven decisions is anticipated to present attractive prospects for the worldwide HR analytics market.

HR Analytics Market – Competitive Landscape

Prominent players in the global HR analytics market are SAP SE, Oracle Corporation, and IBM Corporation. These players are expanding their customer base and gaining market share by upgrading their product line through strategic collaboration activities and acquisitions.

Oracle Corporation launched Oracle Analytics for Cloud HCM in May 2020. Oracle Analytics for Cloud HCM, based on Oracle Analytics Cloud and supported by Oracle Autonomous Database, offers HR executives and analysts valuable insights into workforce management by enabling a holistic perspective into data from across the organization. The new self-service analytics tools assist users in maximizing the value of Oracle Cloud HCM.

HR Analytics Market – Trends and Opportunities

Technological advancements in Artificial Intelligence (AI), big data analytics, Machine Learning (ML), and the Internet of Things (IoT) are likely to boost the global HR analytics market growth. Analytics solutions evaluate the effectiveness of HR policies and allow for the simplification of various HR policies. It has tools for data collecting, data cleansing, data management, visualization, and forecasting. It connects and integrates data to deliver relevant, actionable, and timely insights to improve performance, resulting in better decisions and actions.

The global HR analytics market is likely to benefit from increasing adoption in the BFSI sector. The BFSI sector is undergoing enormous disruption as a result of competitive pressures and regulatory reforms. It is confronted with unique obstacles, such as information security concerns, regulatory requirements, and narrow profit margins. The obstacles are prompting the BFSI sector to use HR analytics for workforce associations in order to reorganize operations and reduce labor expenses.

Furthermore, according to research on analytics done by the Massachusetts Institute of Technology (MIT), top-performing firms use analytics tools up to five times more than lower-performing firms. A tool like HR analytics can assist organizations in dealing with a competitive environment like BFSI on both a strategic and tactical level.

HR Analytics Market – Regional Landscape

North America is expected to witness massive growth in the HR analytics market. This is owing to an increase in the adoption of cloud infrastructure by key organizations in the region and the presence of major vendors for HR analytics, such as IBM Corporation, IBM Corporation, and others.

Moreover, the region's well-established economy is also helping to boost innovations for cloud-based HR analytics model deployment. The region includes developed countries such as Canada and the United States, which are regarded as the most advanced in terms of digital technology use. Furthermore, these countries' strong financial positions enable them to invest heavily in and implement cutting-edge technologies and solutions for efficient business operations.

The Asia Pacific HR analytics market is likely to experience significant growth due to growing economies such as India, China, and the Philippines. Increasing government programs pushing the adoption of cloud technology and digitalization are expected to fuel market growth in the region. The expanding start-up culture, combined with the need to boost employees and company productivity and performance, is likely to propel the HR analytics market.