Home > Technology > Workforce Analytics Market Trends, Analysis Forecast to 2026
Straits Research

Workforce Analytics Market

Workforce Analytics Market: Information by Component Type, Deployment, and End-Use Industry (BFSI, Retail, IT & Telecom, Healthcare, Manufacturing) — Forecast till 2026

Table of Content Download Sample

Market Overview

Workforce analytics entails a sophisticated set of data analysis tools for the measurement and analysis of employee performance. It is used to analyze recruitment, training, staffing, and several other aspects. Assessing employee behavior and retention can be complicated; however, with data-driven approaches, companies are now able to implement effective strategies.

In light of intense competition, organizations are compelled to employ innovative approaches toward talent acquisition, production, and retention. Companies are relying on workforce analytics tools to identify their best-performing employees and boost their productivity. From a hiring perspective, these tools enhance the selection criteria, helping companies find the right talent.

Market Snapshot

market snapshot
Base Year
: 2017
Study Period
: 2016-2026
: 6.2 %
Fastest Growing Market
: Asia Pacific
Largest Market
: North America
Market Size
: 1450
Get more information on this report Download Sample Report

Market Dynamics

Inclination Toward Data-Driven Decision-Making to Drive Adoption of Workforce Analytics

The intricacy of workforce management is rising, which paves the way for quantitative approaches to cope with complexities. For instance, companies are adopting big data technologies for growth. A research study by Tata Consultancy Services revealed that organizations are considering optimizations in employee retention as a key potential of big data technologies.

Analytics can provide insights regarding employee behavior and identify employees likely to leave the organization within a short period of time. Further, it also presents an overview of employee behavior by analyzing data, enabling companies to make suitable workforce decisions.

Enterprises emphasize labor strategies and investments to enhance business productivity. For instance, Mindtree, an information technology company, leveraged HR analytics to improve operations. The tool-assisted the company with the prediction of employee turnover for the upcoming 90 days and also supported it to derive suitable insights from data analysis, which were later employed in the forecasting model for hiring.

A World Economic Forum survey revealed that 85% of respondents are likely to embrace big data analytics by the end of 2022. Thus, the increasing usage of bigdata analytics and other innovative tools will further contribute to the market growth.

Talent Mobility and Workforce Optimization are the Need of the Hour & Drive the Growth of Solutions Such as Workforce Analytics

Human capital is a key asset for an organization, and employee productivity plays a vital role in the success of an organization. Tracking and monitoring employee performance provide a better understanding of the areas that require improvements as well as the areas in which performance is exceeding expectations. For instance, Infosys has adopted a continuous performance management system, which helps it regularly monitor staff performance and predict employee behavior.

Performance data monitoring also assists in the estimation of managerial activities. For instance, Google is leveraging HR analytics for talent management. Project Oxygen helps the company in identifying efficient managers and consolidation of the eight best managerial qualities.          

The figure below shows some of the external and internal factors that drive the adoption of workforce analytics in an organization.

Market Drivers

Internal Drivers

Internally, several factors compel companies to leverage workforce analytics. Shifts in strategies, including acquisitions, mergers, and collaborations, demand an insightful view of the labor force. These transformations require the management of employee outflow and inflow. With the help of workforce analytics, companies can identify methods to maintain employee productivity during mergers and acquisitions. In today’s competitive business scenario, companies find it difficult to retain superior talent, which drives the growth of the workforce analytics market.

External Drivers

Externally, various labor market trends, including flexible and temporary workforce, skill shortages, and globalization, positively affect the workforce analytics market. Further, regulatory issues demand companies be more transparent in their operations in order to reduce bias in hiring and promotion. In addition to this, the proliferation of data from various sources, including mobile and other social applications, also provides insights regarding workforce issues

Segmental Analysis

BFSI Sector Holds Lion’s Share of the Workforce Analytics Market

On the basis of the end-use industry, the workforce analytics market is categorized into banking, financial services, and insurance (BFSI), manufacturing, IT & Telecom, retail, healthcare, and others. The BFSI sector holds the lion’s share of the market as companies in the industry are harnessing innovative technologies to enhance productivity and customer satisfaction. Customer demand fluctuates significantly in the BFSI sector, and thus, banks/financial institutions/insurance companies must expand their expertise to retain their customer base.

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 is, in turn, driving the growth of the workforce analytics market.

Regional Analysis

North America — The Largest Value Shareholder Globally

North America dominates the global workforce analytics market. In the last five years, the region has recorded the highest adoption of HR analytics globally. This can be attributed to the fact that intense competition is compelling companies to seek different approaches toward gaining a competitive advantage.

Workforce analytics aids companies in improving their efficiency by examining the data at disposal. The presence of key players such as Automatic Data Processing, Inc., Cisco Systems, Inc., Oracle Corporation, and IBM also contributes to the region’s growth momentum.

Asia-Pacific — The Fastest Growing Market Globally

Asia-Pacific is pegged to record the highest CAGR in the global workforce analytics market during the forecast period. China and India are expected to remain the most significant contributors in the years to come. While companies of all sizes are expected to eventually try workforce analytics as a means to enhance employee productivity, SMEs are expected to exhibit the highest adoption during the forecast period. Both China and India have a significant number of SMEs, which drives market growth in the region.

Cloud-based deployment solutions help SMEs adopt these solutions cost-effectively; thus, it can be inferred that the cloud-based deployment of workforce analytics in these countries will be relatively high. Moreover, employees in the region typically change jobs frequently, primarily for a wage increase, which increases the need for workforce analytics solutions. Various industry verticals in the region, including retail, banking, and manufacturing, are adopting workforce analytics services.

Workforce Analytics Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Workforce Analytics Market

  1. Accenture PLC
  2. Automatic Data Processing, Inc.
  3. Capgemini SE
  4. Cisco Systems Inc.
  5. Cornerstone OnDemand Inc.
  6. IBM Corporation
  7. Oracle Corporation
  8. Peoplestreme Pty. Ltd.
  9. SAP SE
  10. SumTotal Systems, LLC
  11. Visier, Inc.
  12. Workday, Inc.

Report Scope

Report Metric Details
CAGR 6.2%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Component Type
    1. Solutions
      1. Talent Acquisition & Development Optimization Services
      2. Payroll & Monitoring
    2. Services
      1. Professional Services
      2. Managed Services
  2. By Deployment Type
    1. Cloud
    2. On-Premise
  3. By End-Use Industry
    1. BFSI (Banking, Financial Services, and Insurance)
    2. Manufacturing
    3. IT & Telecom
    4. Retail
    5. Healthcare
    6. Others
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa

Recent Developments

  • Oracle released a revised version of the Oracle Human Capital Management Cloud in March 2019, which offers an improved user experience.
  • In February 2019, Infor, an enterprise software company, partnered with MODERN HIRE to integrate interviewing technology and predictive talent analytics for the hiring process. This will help users make interviews more automated and smarter. It also allows companies to hire top talent quickly.

Workforce Analytics Market Segmentation

By Component Type

  • Solutions
    • Talent Acquisition & Development Optimization Services
    • Payroll & Monitoring
  • Services
    • Professional Services
    • Managed Services

By Deployment Type

  • Cloud
  • On-Premise

By End-Use Industry

  • BFSI (Banking, Financial Services, and Insurance)
  • Manufacturing
  • IT & Telecom
  • Retail
  • Healthcare
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East & Africa

Frequently Asked Questions (FAQs)

What is the growth rate for the Workforce Analytics Market?
Workforce Analytics Market size will grow at approx. CAGR of 6.2% 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 report is segmented as follows: By Component Type, By Deployment Type, By End-Use Industry
Price Starts From
USD 995

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
Samsung Electronics
Need Assistance?
+1 646 905 0080 (U.S.)
+44 203 695 0070 (U.K.)

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Report Snapshot
Looking For Custom Report ?
Check Our License Options :

As featured on :

Trusted by Fortune 500
Over 30000+ subscribers