Workforce Analytics Global Market Report 2024

Workforce analytics involves the utilization of advanced algorithm-based analytical software and tools designed for the examination of employee-related data, aiming at performance measurement and enhancement. This involves the aggregation of data from both internal and external sources, which is then analyzed to derive insights about the organization's employees, contributing to improved workplace planning and management. These tools and technologies are instrumental in comprehending specific trends, including attrition rate, efficiency, and learning efficacy.

The key elements of workforce analytics encompass solutions and services. Workforce analytics solutions encompass software and analytical tools utilized to enhance productivity, workforce planning, and other operational processes. Employing statistical models to manage worker-related data, these solutions enable enterprises to optimize human resource management. Deployment options for workforce analytics solutions include on-premises or cloud-based solutions. Industries spanning BFSI, manufacturing, healthcare, government, retail, IT and telecom, education, and others, both large enterprises and small & medium enterprises, leverage these solutions for various day-to-day activities.

The workforce analytics market research report is one of a series of new reports that provides workforce analytics market statistics, including workforce analytics industry global market size, regional shares, competitors with a workforce analytics market share, detailed workforce analytics market segments, market trends and opportunities, and any further data you may need to thrive in the workforce analytics industry. This workforce analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The workforce analytics market size has grown rapidly in recent years. It will grow from $1.6 billion in 2023 to $1.82 billion in 2024 at a compound annual growth rate (CAGR) of 13.7%. During the historical period, the increase can be ascribed to several factors, including regulatory compliance and reporting, the adoption of cloud-based solutions, integration with HR management systems, predictive analytics for retention, analytics related to diversity and inclusion, as well as efforts directed at enhancing efficiency and productivity. Additionally, there was a focus on optimizing talent acquisition processes.

The workforce analytics market size is expected to see rapid growth in the next few years. It will grow to $3.23 billion in 2028 at a compound annual growth rate (CAGR) of 15.4%. The anticipated growth in the forecast period is linked to factors such as vendor innovation and competition, the emergence of industry-specific analytics solutions, global economic conditions and recovery, an increased emphasis on learning and development analytics, and a rising adoption of workforce solutions by mid-sized enterprises. Key trends projected for this period include a focus on workforce resilience planning, the measurement of employee productivity, integration of AI and machine learning, leveraging people metrics for business strategy, and real-time performance monitoring.

The workforce analytics market is anticipated to experience substantial growth due to the increasing investment in this field. Numerous organizations are contemplating raising their investments in workforce analytics as it proves beneficial in enhancing employee productivity, refining recruitment strategies, making better hiring decisions, retaining top talent, optimizing workforce efficiency, and aiding in effective workforce planning. Workforce analytics, leveraging the latest technologies and metrics, promises a significant return on investment in the long term. For instance, Randstad Sourceright's 2022 Talent Trends study revealed that 73% of talent leaders are channeling investments into HR and workforce analytics, showcasing the rising trend of investment in this sector and the potential boost in demand for workforce analytics solutions and services in the forecast period.

The workforce analytics market is expected to witness growth propelled by the increasing adoption of cloud computing. Cloud computing involves the delivery of various computing services over the internet, including servers, storage, databases, networking, software, and analytics. Embracing cloud computing facilitates seamless data collection and analysis of employee data, empowering businesses to make informed decisions in areas such as recruitment, personnel management, and workforce development. This transition provides organizations with a flexible and potent tool for optimizing employee performance. In November 2022, it was reported that the annual revenue from cloud infrastructure services is projected to reach $178 billion, and 90% of large businesses are expected to have a multi-cloud infrastructure. Furthermore, the cloud applications market is estimated to reach $168.6 billion by 2025. Therefore, the increasing utilization of cloud computing is anticipated to contribute significantly to the growth of the workforce analytics market.

A key trend gaining traction in the workforce analytics market is the integration of advanced technologies. The market is witnessing the incorporation of cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) into workforce analytics solutions. AI, ML, and NLP-based workforce analytics contribute to better evaluation, increased productivity, enhanced business scalability, improved business operations, and greater efficiency of employees. Major players are strategically focusing on providing advanced workforce analytics to meet the evolving demands of end-customers and solidify their market positions. For example, in June 2023, Visiera, a Canadian-based company specializing in cloud-based workforce analytics and planning software, introduced Vee, a generative AI-based digital assistant that integrates with Visier People, a widely adopted people analytics solution. This innovative capability enables leaders to access valuable insights about their workforce through a simple conversational interface.

Leading companies in the workforce analytics market are actively developing innovative solutions to stay competitive. Innovative solutions in workforce analytics involve pioneering approaches and tools that leverage advanced analytics to gain profound insights into workforce performance, productivity, and trends, facilitating informed decision-making and strategic HR management. For instance, in June 2023, Visiera launched Smart Compensation, a new product designed to simplify the complex compensation planning process into an easy-to-use, data-driven approach, empowering managers. This product can be utilized by both existing Visier customers as part of their suite of offerings or by new customers as a standalone application supporting their compensation planning teams.

In July 2021, Accenture PLC, an Ireland-based information technology company, acquired Workforce Insight for an undisclosed amount. This strategic acquisition underscores Accenture's commitment to enhancing its workforce capabilities and expanding its capacity to assist clients in HR transformation. Workforce Insight, a US-based provider of workforce software and workday solutions, aligns with Accenture's goals to further strengthen its position in the workforce analytics market.

Major companies operating in the in the workforce analytics market report are ADP LLC (Automatic Data Processing Inc. ), Cornerstone OnDemand Inc., International Business Machines Corporation (IBM), Kronos Incorporated, Oracle Corporation, Accenture plc, Capgemini SE, Tableau Software LLC, Workday Inc., PeopleStreme Pty Ltd, Microsoft Corporation, Visier Inc., UKG Inc. (Ultimate Kronos Group), SAP SE, Beeline. com Ltd., Brightfield Strategies LLC, Bullhorn Inc., Cisco Systems Inc., Talentsoft SA, Trianz Holdings Pvt. Ltd., Genpact Limited, Deloitte Touche Tohmatsu Limited, Cognizant Technology Solutions Corporation, Infosys Limited, Wipro Limited, HCL Technologies Limited, NICE Systems Ltd., Verint Systems Inc., WorkForce Software LLC, Google LLC

North America was the largest region in the workforce analytics market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the workforce analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the workforce analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The workforce analytics market includes revenues earned by entities by providing open job requirement data management, talent acquisition management, team constitution, leadership development, career management, performance development, and safety and wellness interventions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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