Global HR Analytics Market Report 2024 is growing at a CAGR of 13.6 percent and will reach USD 3.9 Billion by 2025. According to LinkedIn, the global HR Analytics market size is USD million in 2024 from USD 2338.1 million in 2024, with a change between 2024 and 2024. The global HR Analytics market size will reach USD 4933 million in 2031, growing at a CAGR of 11.3 percent over the analysis period. The United States HR Analytics market is expected at value of USD million in 2024 and grow during review period. China constitutes market for the global HR Analytics market, reaching USD million by the year 2031. As for the Europe HR Analytics landscape, Germany is projected to reach USD million by 2031 trailing over the forecast period. In APAC, the growth rates of other notable markets (Japan and South Korea) are projected for the next 5-year period. Global main HR Analytics players cover IBM Corporation, MicroStrategy Incorporated, Oracle, and SAP SE, etc.
Any technology’s optimum use begins with a clear understanding of its functions and benefits, not to mention, its core purpose. Though HRs have been increasingly using the term HR analytics, there is a striking ambiguity in their understanding of it. They have been using the terms HR analytics, people analytics and workforce analytics interchangeably. The three, however, differ remarkably in their applications. While HR analytics is used to manage internal employees and to measure time to hire, training expenses, etc. people analytics is used for a larger umbrella of operations i.e. to manage both internal and external stakeholders. Workforce analytics is used to manage the entire gamut of the workforce (internal customers, gig workforce, consultants, freelancers and all).
Given the scope and the relevance of it, HR analytics can be the most vital tool not only for the HRs but also for the managers who can furnish exclusive and strategic insights to the C-suite and aid their decision-making.
HR analytics paves a roadmap for the talent journey. It improves hiring efficiency by at least 30%. Talent managers can sift through thousands of CVs and create a concrete base for the first-rate talent. Because the decisions are data-backed so they are unlikely to go biased or redundant. Hence, it significantly cuts the costs associated with bad hires. With better insights into the cultural environment, technological environment and physical environment, HRs can markedly improve the employee experience. They also can:
Brad Orluk, strategic alliances manager at Nintex, a workflow automation provider said: “HR groups can now capture the metrics needed to understand how their employees engage with certain content and tools, and more importantly, why”. These metrics pave the way:
While C-suite may not be keen in knowing the voluntary turnovers, they’ll surely be interested in knowing how many of these were functioning in strategic positions or were exceptionally skilled. And, how long they stayed in the organization and the reasons for their move, the cost of their replacement and its impact on the overall organizational performance.
To set up a sustainable and fully functional data department within your organization, you will need:
HR Analytics is a must for organizations. If your company and its leadership team haven’t bought in HR analytics and are continuing with their conventional processes, your organization is likely to reach a bottleneck soon.
“Human resource programs no longer need to be based on “soft” reasoning but should be as analytical and as data driven as any other management discipline,” says Chris Argyris, Management Theorist & Professor Emeritus at Harvard Business School.
Most prominent use of HR analytics is projected in the Banking, Financial Services and Insurance (BFSI) vertical. Legal companies are also quick to adopt HR analytics. Construction, manufacturing and recreation and travel are lagging behind but are expected to pick the pace soon.
Data transformed marketing, and now it is set to transform human resources. Are you ready?
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