PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1064102
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1064102
According to Stratistics MRC, the Global Workforce Analytics Market is accounted for $1205.14 million in 2022 and is expected to reach $3139.25 million by 2028 growing at a CAGR of 17.3% during the forecast period. Workforce analytics is a statistical tool for analytics that strengthen workforce and other employee-related behavioral analyses. It is an integration of big data analytics with other statistical methods to maintain and measure operational and human resource management.
Of the workforce management applications market, the time and attendance segment was by far the biggest segment in the market in 2020, generating around 2.4 billion U.S. dollars in revenue. From 2018 to 2020 this segment gained nearly 700 million U.S. dollars. Thirty percent of surveyed global IT executives reported the successful digital transformation of their workforce in the development department as of 2019. Overall, 37 percent of respondents reported that their organization has implemented a workforce transformation.
Due to the requirement of flexibility, speed, and innovation, enterprises are now focusing more on advanced people analytics management systems including workforce analytics. Also, companies are looking forward to improving collaboration across various departments to increase the number of innovative ideas built into their products. Thus, these requirements give rise to the adoption of workforce analytics creating demand for the market to grow. For instance, Google is utilizing HR analytics for its talent and field service management activities.
Due to the high cost of deployment and lack of information, there are possibilities that small enterprises may not be using workforce analytics. Also, the advancement in workforce analytics such as AI adoption and others adds up the cost and makes workforce analytics more expensive. Thus, these issues may hamper the adoption of workforce analytics for small firms which may obstruct the market growth.
As it has been used for monitoring performance data which helps to assess how effectively managers are engaging their employees to set expectations, clarify doubts, plan improvement, and address performance anxieties. 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.
The combining of all the existing data from different sources, lack of analysis skills, concerns associated with data privacy, and compliance due to the lack of product information are expected to threaten the market growth. Factors such as lack of knowledge regarding the workforce analytics tools, resistance to change the traditional methods might hamper the market growth. Also, challenges such as lack of analysis skills, consolidating all the available data from different sources, concerns regarding data privacy are expected to affect the Market.
Due to the increase in demand for the workforce from the banking and financial institutions. As it can provide insights into customers who have some outstanding payments. Credit profiling of these customers to highlight their holdings and the customer behavioral information like outstanding payment, any payment defaults, earnings, etc. can be used to create a credit score of each customer. Furthermore, every banking process can become faster and more effective. Among other things, banks can use advanced analytics to provide faster and more accurate responses to regulatory requests and give teams analytics-enhanced decision support are some of the factors supporting the segment growths.
Software as a Service (Saas) Cloud-Based workforce analytics holds the highest market size during the forecast period, owing to its ease of use, scalability, and cost-effectiveness. Also, it comes under a limited budget, so they could be opted by small and medium scale enterprises as well. Additionally, the cloud-based model features accessibility from various device platforms and demand-based usage which further adds up to attract more customer attention.
The Asia Pacific is projected to hold the highest market share, because of the shift towards more employee-centric organizations. The companies are focusing on their employees to gain competitive advantages in the area. Therefore, they are implementing workforce analytics so that they get a clear picture of the internal framework. Furthermore, 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, thus creating a positive impact on the market.
North America is projected to have the highest CAGR, the major factors driving the growth of the market in this province includes a high rate of adoption of technologies such as AI, cloud, big data, analytics, and others, the presence of a key and large number of vendors in this market. Also, an increase in the early adoption of public cloud-based in workforce analytics solutions from the U.S and Canadian companies are expected to drive the growth of the market.
Some of the key players profiled in the Workforce Analytics Market include Accenture Plc , Automatic Data Processing, Inc, Capgemini, Cisco Systems Inc, Cornerstone OnDemand, IBM Corporation, Kronos Inc, Oracle Corporation, Peoplestreme Pty Ltd ( Ascender), SAP SE, SumTotal Systems, LLC, Tableau Software, Visier, Inc, Workday, Inc, Workforce Software, Infor Enterprise Software Company.
In March 2021: Oracle Corporation launched 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.
In 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.
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Table17 Global Workforce Analytics Market Outlook, By Organization Size (2020-2028) (US $MN)
Note- Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.