HR Analytics Software Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

HR Analytics Market Analysis

The HR Analytics Market size is estimated at USD 4.31 billion in 2024, and is expected to reach USD 7.91 billion by 2029, growing at a CAGR of 12.89% during the forecast period (2024-2029).

By using data gathered, HR analytics aids in improving the productivity of HR services by making predictions about crucial factors, including performance, retention, and recruiting. These elements are all driving the market's expansion.

• By using HR analytics, HR departments can make data-backed decisions when it comes to managing attrition and spot areas where automation can be introduced. They can leverage the solution capabilities to capture insights on employee feedback forms. HR analytics can also implement artificial intelligence recruiters to automate interview scheduling, provide real-time feedback to employees, and improve the handling of Big Data HR analytics. This will not only help HR executives to save time but also money.
• One of the most important applications of HR analytics is the prediction of sick leaves or days off. For instance, the provider of financial protection benefits, Unum Group, launched a pilot project with the illness forecast application provider, Sickweather. The project identifies correlations between Sickweather's data from its real-time human health map and Unum's Family and Medical Leave Act (FMLA) and coded sick leave paid time off (PTO) data to forecast employee illness-related absence.
• Identifying the current and future skill gaps is another application for HR analytics. Mexico's Ministry of Energy uses a predictive workforce planning and analytics model to learn about the current shortage of skilled workers in the oil and gas industry and predict one over a 10-year horizon. The industry also started using workforce planning and analytics for renewable energy and sustainability in such sectors.
• One of the biggest challenges faced by organizations around the world is the management of people and talent. While continuing to work on improving hiring procedures, employee satisfaction, payroll issues, and retrenchment, an HR professional needs to keep everyone on the same page and still manage to get things done as expected by the company and managers. Due to the introduction of data analytics in HR processes, the approach has become simpler than ever, proving to be a major advantage for HR in their everyday work.
• The employee benefits trends survey by Metlife found that 72% of workers would desire limitless vacation time as a benefit. However, HR analytics can assist in making sure that employees are taking enough time off following the organization's regulations. HR analytics can also assist in monitoring each employee's overtime hours.
• The trend towards remote work has been gradually growing for the past few years. However, COVID-19 has dramatically accelerated this trend in an extremely short period of time, forcing companies, irrespective of their size, to adapt quickly to the self-isolation measures that governments across the globe were recommending. With the pandemic requiring much more people to work remotely, analytics solutions are becoming essential for companies as these solutions can help in managing the remote workforce efficiently and provide the ability to track the status of the workforce so that the company can report and analyze these trend and impact on the business.

HR Analytics Market Trends

This section covers the major market trends shaping the HR Analytics Market according to our research experts:

Telecom and IT Industry is Witnessing a Significant Share in the Market

HR Analytics Industry Segmentation

HR analytics refers to applying the analytic process to the human resource department's talent data to measure the performance and efficiency that matters to HR the most to drive better returns on investment. It deals with gathering data, and providing insights into each process to make relevant managerial decisions. The data may include the number of people trained, the number of people with certain competencies, and the number of candidates to have in the pipeline based on the estimated attrition among others to help managers to deliver compliance and diversity reports.

The HR Analytics Market is segmented by Component (Solutions and Services), Deployment Mode (On-Premise and Cloud), End-user Industry (BFSI, Telecom & IT, Consumer Goods & Retail, Healthcare, and Manufacturing), and Geography (North America (United States, and Canada), Europe (Germany, United Kingdom, France, and Rest of Europe), Asia-Pacific (India, China, Japan, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), and Middle East and Africa (United Arab Emirates, Saudi Arabia, and Rest of the Middle East and Africa))

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.