Home Technology Workforce Analytics Market Size, Share, Analysis, Growth, Trends, Report, 2031

Workforce Analytics Market

Workforce Analytics Market Size, Share & Trends Analysis Report By Component Type (Solution , Services), By Deployment Model (Cloud-based, On-premise), By End-User (BFSI (Banking, Financial Services, and Insurance) , Manufacturing , IT and Telecom , Retail , Healthcare , Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE502DR
Study Period 2020-2032 CAGR 15.3%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 2.21 billion
Forecast Year 2032 Forecast Year Market Size USD 7.95 billion
Largest Market North America Fastest Growing Market Asia-Pacific
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Market Overview

The global workforce analytics market size was valued at USD 2.21 billion in 2023. It is estimated to reach USD 7.95 billion by 2032, growing at a CAGR of 15.3% during the forecast period (2024–2032). The emergence of remote and hybrid work model has accelerated after the COVID-19 pandemic, which has increased the demand from organizations to manage their work effectively and efficiently, thereby driving global market growth. There has also been a rise in the focus on enhancing employee experience and engagement for organizational success. This has also increased the demand for workforce analytics. Moreover, advancements in workforce analytics technology, like the integration of AI and ML, are estimated to present opportunities for the growth of the global market.

Workforce analytics refers to systematically collecting, analyzing, and reporting data pertaining to the productivity, behavior, and characteristics of employees and teams. Workforce analytics may enhance firms' human resource management by optimizing talent acquisition, fostering employee engagement, increasing productivity, improving retention rates, and ultimately driving better business outcomes.

Workforce analytics may assist firms in identifying and resolving challenges such as deficiencies in skills, diversity and inclusion, employee welfare, and compliance. The objective of workforce analytics is to offer data-driven insights that enable enterprises to make well-informed decisions about their workforce. By utilizing workforce analytics, organizations can enhance their ability to make strategic and data-oriented decisions regarding their human resources, resulting in enhanced performance, productivity, and competitiveness.

Highlights

  • Cloud-based dominates the deployment model segment
  • BFSI dominates the end-user segment
  • North America is the highest shareholder in the global market

Market Dynamics

Global Workforce Analytics Market Drivers

Emergence of Remote and Hybrid Work Models

The COVID-19 pandemic has expedited the change to remote and hybrid work patterns, enabling employees to work-from-anywhere, anytime, and using any device. According to the poll by Owl Labs, 16% of employees worldwide work remotely, while 62% have chosen to work in a hybrid manner. Just 22% of the total workforce are employed full-time in the office. Therefore, employees are strongly inclined towards working in a hybrid environment. Moreover, as per the McKinsey poll, 58% of employees reported a boost in their productivity as a result of hybrid work.

Organizations are now faced with fresh problems and prospects in successfully and efficiently managing their staff. Workforce analytics enables firms to respond effectively to the evolving work landscape by offering insights into employee productivity, collaboration, communication, and performance. Workforce analytics may assist firms in optimizing their workforce planning, allocation, and scheduling while ensuring employee health and safety. Therefore, the rise of remote and hybrid work models is anticipated to propel the global workforce analytics market.

Demand for Enhancing Employee Experience and Engagement

Employee experience and engagement play a pivotal role in determining the success of a business, as they have the potential to impact employee satisfaction, loyalty, performance, innovation, and retention. Organizations are shifting from solely measuring traditional employee engagement metrics to embracing a comprehensive strategy encompassing the full employee experience. This includes all facets of the workplace, human resources policies, and management that affect employees during their employment.

Furthermore, workforce analytics enables firms to quantitatively assess and enhance employee experience and engagement by offering valuable information on employee feedback, mood, behavior, and preferences. Workforce analytics may aid firms in developing and executing employee engagement initiatives, including recognition, rewards, learning, and development programs. Therefore, the need for workforce analytics is expected to increase due to its ability to improve employee experience.

Global Workforce Analytics Market Restraint

Lack of Data Quality and Integration 

Workforce analytics relies heavily on data quality and integration, as these factors significantly impact the accuracy, dependability, and validity of the results and suggestions. However, numerous firms need help gathering, cleaning, and integrating data from diverse origins, including HR, payroll, performance management, and employee surveys. Moreover, several firms may lack the requisite data governance and security policies and processes to guarantee the confidentiality and safeguarding of employee data. These obstacles are projected to impede market expansion.

Global Workforce Analytics Market Opportunities

Advancements in Analytics Technologies

The advancements in analytics technologies, including artificial intelligence (AI), machine learning (ML), and predictive analytics, are propelling the development of workforce analytics solutions. These technologies enhance the capabilities of workforce analytics platforms by enabling more advanced analysis of workforce data, such as predictive modeling, sentiment analysis, and natural language processing (NLP). Moreover, market participants are incorporating these innovative technologies into their workforce analytics solutions and launching them in the market.

For instance, in October 2020, Tata Consultancy Services (TCS), a multinational organization specializing in IT services, consulting, and business solutions, introduced TCS Workforce Analytics. This advanced system utilizes artificial intelligence to provide a unified platform for employees, managers, and CXOs, offering valuable insights and predictions. Its primary goal is to improve productivity and enhance the overall experience of the workforce. The novel solution is specifically crafted to assist enterprises in addressing the talent management obstacles presented by the digital era. The digital transformation process necessitates acquiring a distinct type of workforce, possessing a wide range of skills and talents, which conventional recruiting techniques are inadequate to evaluate. These factors present opportunities for market expansion.

Regional Analysis

North America Dominates the Global Market

Based on region, the global workforce analytics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global workforce analytics market shareholder and is expected to expand substantially during the forecast period. This is due to the presence of prominent players in the workforce analytics market, including IBM, Oracle, SAP, ADP, and Workday. The region has a tendency to adopt cutting-edge technologies like cloud computing, big data analytics, and artificial intelligence. These technologies are essential for supporting the workforce analytics market's growth. Moreover, there is a noticeable trend towards remote and hybrid work in this region due to the population's high level of technological awareness. According to Upwork, around 32.6 million Americans are projected to work remotely by 2025, accounting for approximately 22% of the total employment. This estimate indicates a steady and incremental transition towards remote work arrangements. This is expected to propel the North American workforce analytics market.

Moreover, market participants from different regions are developing their businesses there. For instance, in December 2022, ProHance Analytics, a cloud-based tool for analyzing the workforce of businesses, officially announced its launch in the United States. The announcement is a component of their development strategy after introducing hybrid work software. Having achieved a position of superiority in the Southeast Asia market, the corporation is now strategically expanding its operations to the United States. Hence, these factors are propelling the expansion of the regional market.

Asia-Pacific is projected to experience the most significant growth rate in the forecast period due to its rapid economic development and industrialization. These factors contribute to a substantial potential for the workforce analytics market in the region. Moreover, the region boasts a substantial and diverse workforce population, presenting a range of complexities and possibilities for workforce analytics solutions, particularly in nations like China, India, Japan, and Australia.

Moreover, the prominent market participants are employing novel workforce analytics solutions to handle the extensive workforce in this region effectively. For instance, in May 2023, UKG, a prominent provider of HR, payroll, and workforce management solutions, announced the introduction of UKG Strategic Workforce Planning in Australia and New Zealand (ANZ). UKG Strategic Workforce Planning integrates strategic planning and personnel development to enable organizations to achieve operational excellence. Similarly, in January 2023, Awareness Technologies, Veriato's parent company, announced the introduction of Veriato's worker behavior analytics software in India through a partnership with Sectonics. Therefore, the factors mentioned above promote the growth of the market.

Report Scope

Report Metric Details
Segmentations
By Component Type
  1. Solution 
  2. Services
By Deployment Model
  1. Cloud-based
  2. On-premise
By End-User
  1. BFSI (Banking, Financial Services, and Insurance) 
  2. Manufacturing 
  3. IT and Telecom 
  4. Retail 
  5. Healthcare 
  6. Others
Company Profiles Accenture PLC Automatic Data Processing, Inc. Capgemini SE Cisco Systems Inc. Cornerstone OnDemand Inc. IBM Corporation Oracle Corporation Peoplestreme Pty. Ltd. SAP SE SumTotal Systems LLC Visier, Inc. Workday, Inc.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global workforce analytics market is bifurcated into components, deployment models, and end-users.

Based on components, the global workforce analytics market is bifurcated into software and services. 

Workforce analytics software is a technology designed to help organizations analyze various aspects of their workforce data to make more informed decisions about human resources management. The software solutions enable organizations to collect, analyze, and visualize workforce data easily and efficiently, driving the segment's growth. Workforce analytics software can assist organizations in ensuring compliance with labor laws, regulations, and internal policies. It helps identify potential risks related to workforce management and provides recommendations to mitigate them.

Based on the deployment model, the global workforce analytics market is bifurcated into cloud-based and on-premises. 

The cloud-based segment is anticipated to be the largest contributor to the market share. The cloud-based segment dominated the market, offering scalability, flexibility, cost-effectiveness, and accessibility. The market players are introducing novel cloud-based workforce analytics solutions, driving the segment's growth. For instance, in February 2016, ProHance, a workforce analytics software provider, announced the launch of an updated version of their product, which is based in the cloud. The most recent version incorporates a redesigned user interface (UI) and extended capabilities, such as additional integration adapters, Lean Management dashboards, compatibility with the Mac operating system, and an improved objectives and notifications module.

Based on end-users, the global workforce analytics market is divided into banking, financial services, and insurance (BFSI), IT and telecom, manufacturing, retail, healthcare, and others. 

The BFSI segment owns the market over the forecast period. The BFSI segment dominated the market, as the BFSI industry faces high competition, regulation, and innovation and hence requires workforce analytics to enhance its workforce capabilities and performance. The companies in this industry are harnessing innovative technologies to enhance productivity and customer satisfaction, thereby driving segment growth. Customer demand fluctuates significantly in the BFSI sector, and thus, banks/financial institutions/insurance companies must expand their expertise to retain their customer base.

Moreover, innovative technologies such as artificial intelligence and robotic process automation will significantly impact banking services; hence, companies in the sector must employ skilled professionals with a sound understanding of these technologies. Therefore, banking companies are increasingly leveraging workforce analytics services to identify and retain the best talent, which drives the growth of the workforce analytics market.

Market Size By Component Type

Recent Developments

  • July 2023- iMocha, a prominent SkillsTech platform, introduced its Skills Intelligence Cloud, an innovative platform powered by artificial intelligence. This platform aims to transform several aspects of company operations, including hiring, talent management, internal mobility, and workforce planning processes.
  • August 2023- WellSky, a prominent health and community care technology company, introduced WellSky TeamInsights for Personal Care. This platform offers real-time workforce analytics, allowing personal care agencies to gain valuable insights into caregiver productivity and performance. This platform allows agencies to optimize their personnel resources, enhance engagement, and boost caregiver retention.

Top Key Players

Accenture PLC Automatic Data Processing, Inc. Capgemini SE Cisco Systems Inc. Cornerstone OnDemand Inc. IBM Corporation Oracle Corporation Peoplestreme Pty. Ltd. SAP SE SumTotal Systems LLC Visier, Inc. Workday, Inc. Others

Frequently Asked Questions (FAQs)

What is the growth rate for the Workforce Analytics Market?
Workforce Analytics Market size will grow at approx. CAGR of 15.3% during the forecast period.
Some of the top industry players in Workforce Analytics Market are, Accenture PLC, Automatic Data Processing, Inc., Capgemini SE, Cisco Systems Inc., Cornerstone OnDemand Inc., IBM Corporation, Oracle Corporation, Peoplestreme Pty. Ltd., SAP SE, SumTotal Systems, LLC, Visier, Inc., Workday, Inc., etc.
North America has held a dominant position in the Workforce Analytics Market, with the largest market share.
The Workforce Analytics Market has seen the most substantial growth rate in Asia-Pacific.
The global workforce analytics market is bifurcated into components, deployment models, and end-users.


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