The market for HR analytics is expected to reach $3.9 billion by 2025, rising at a compound annual growth rate of 13.6 percent, the authors forecast. (Image: Shutterstock)
The use of HR analytic tools is on the rise, as HR professionals increasingly analyze workforce data to improve organizational culture and employee productivity, according to the “Global HR Analytics Market (2019-2025)” report offered on ResearchAndMarkets.com.
Indeed, the market is expected to reach $3.9 billion by 2025, rising at a compound annual growth rate of 13.6 percent, the authors forecast.
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“Running machine learning algorithms on a jobseeker's data helps companies to catch the best matching talent for a vacant position, thereby improving the quality of recruitment,” the authors write. “Similarly, using employee data, recruiters can recognize a pattern of high performing employees and accordingly modify their employee hiring and retention strategy.”
HR analytics can also pinpoint which areas within an organization have the highest employee turnover — and why, according to the report. Such tools can also aid HR professionals in determining which activities can boost employee engagement.
The market analyses are broken down by HR functions such as workforce management, retention, recruitment, payroll and employee engagement; functionality within the analytical tools; whether the tools are on-premise or cloud-based, specific industries utilizing such tools; and utilization depending on organizational size, among other analyses.
“An increasing need to analyze employee data for achieving organizational goals is expected to drive HR analytics adoption among large enterprises,” the authors write. “Furthermore, there is a growing focus on improving operational efficiency and profit, which is expected to boost the growth of the market in small and medium-sized enterprises segment.”
Indeed, the HR analytics market for SMEs is expected to grow at a higher compound annual growth rate than the market is for larger organizations, according to the report.
“More than larger enterprises, the SMEs face a greater resource crunch and require better methods to solve the complexities for cost optimization on their assets and requirements,” the authors write.
The report also profiles key companies in the HR analytics market, including Oracle Corp., SAP SE, Infor Inc., The Sage Group Plc., IBM Corp., Microstrategy Inc., ZOHO Corp. Pvt. Ltd., Sisense Inc., Visier Inc. and Workday Inc.
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
