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

Feb 06, 2020   Global Statistics Representing Workforce Analytics Market Scenario 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 t...
Request Free Sample Report

Report Description

Global Statistics Representing Workforce Analytics Market Scenario

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.

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 big data analytics and other innovative tools will further contribute to the market growth.

Talent Mobility and Workforce Optimization are the Need of the Hour & Drive 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 the 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.

Internal-Drivers-and-External-DriversInternal 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.

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.

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 Workforce Analytics 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.

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: 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.

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)

Increasing usage of big data analytics, rising demand an insightful view of the labor force are the key factor expected to drive the Workforce Analytics Market during the forecast period.
BFSI Industry Segment is expected to be leading segment in Workforce Analytics Market during the forecast period.
North America is expected to hold the highest market share in Workforce Analytics Market.
Accenture PLC, Automatic Data Processing, Inc., Capgemini SE, Cisco Systems Inc., IBM Corporation, Oracle Corporation, SAP SE are the top players in Workforce Analytics Market.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.

Global Statistics Representing Workforce Analytics Market Scenario

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.

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 big data analytics and other innovative tools will further contribute to the market growth.

Talent Mobility and Workforce Optimization are the Need of the Hour & Drive 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 the 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.

Internal-Drivers-and-External-DriversInternal 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.

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.

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 Workforce Analytics 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.

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: 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.

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)

Increasing usage of big data analytics, rising demand an insightful view of the labor force are the key factor expected to drive the Workforce Analytics Market during the forecast period.
BFSI Industry Segment is expected to be leading segment in Workforce Analytics Market during the forecast period.
North America is expected to hold the highest market share in Workforce Analytics Market.
Accenture PLC, Automatic Data Processing, Inc., Capgemini SE, Cisco Systems Inc., IBM Corporation, Oracle Corporation, SAP SE are the top players in Workforce Analytics Market.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.