Market Trends of HR Analytics Industry
This section covers the major market trends shaping the HR Analytics Market according to our research experts:
Telecom and IT Industry is Witnessing a Significant Share in the Market
- Data analysis assists HR in managing the full talent lifecycle by looking into competitive benchmarking, competency gap analysis, learning opportunities, workforce patterns, talent demands, etc. The human resource function is expanding from both a technological and an analytics perspective. Additionally, enterprises are being helped by Artificial Intelligence (AI), Machine Language (ML), and Natural Language Processing (NLP) to see and analyze data holistically rather than just linearly, employing various tools and algorithms to solve business problems.
- IT and telecom have been seen in a negative light for the past few years when it comes to attrition rates. For instance, in companies such as Uber and Dropbox, the average tenure of a tech employee is 1.8 years and 2.1 years, respectively. HR analytics is helping these organizations with the ability to understand various industry trends, and multiple organizations are deploying advanced analytics solutions to improve employees' experience.
- Numerous firms' IT teams are quickly becoming overburdened with requests for training, user support, and reporting. Ad hoc reporting burdens on analysts can be decreased using Business Intelligence (BI) solutions, which can improve data security for the company and cut down on time spent on help desk support. Therefore, companies in this industry rely on the appropriate tactics and tools to guarantee that employees have the necessary skills and fit their organizational culture. This is the main factor influencing the IT industry's adoption of HR analytics.
- The telecom industry has adopted advanced analytics to manage its customer base, enhance value propositions, and create new products. Moreover, operators are just beginning to apply analytics. However, the telecom industry is turning increasingly to technological innovations to upgrade its recruitment and engagement strategies. It started leveraging HR analytics solutionsto achieve organizational and people effectiveness throughout the entire organization.
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North America to Hold the Significant Share in The Market
- Over the past few years, HR analytics has had considerable acceptance in North America. This is due to the fact that more large regional companies are employing cloud infrastructure and that there are significant HR analytics vendors in the region, such as IBM Corporation.
- For instance, LinkedIn published a report stating that it has found a 3x increase in HR professionals from North America who list analytics skills and similar keywords in their profile in the last five years.
- The survey further claims that it has discovered a concentrated use of HR analytics in North America, with banking holding the highest adoption and tech software holding the lowest adoption, compared to other industries like architecture, spectrum, and manufacturing.
- Additionally, New York, Washington, DC, and San Francisco are among the top regions in North America with a high adoption rate of HR analytics, with a greater emphasis on benefits, productivity, compensation, and performance across diverse industries. For instance, cities like Washington, DC that have the highest levels of skill scarcity use HR analytic tools for workforce planning.
- It is recommended that educational and professional institutions in the US review their course offerings to include HR analytics courses in creating subject matter experts. The excellent findings from their students' research will contribute to the body of knowledge on HR analytics and give businesses a platform for developing HR solutions to employee management problems. However, the lack of awareness and adoption of HR analytics across industries such as the public sector due to its continuum phase and the impact of the recent global pandemic COVID-19 with organizations halting their recruitments in the region, may hinder the growth of the market.
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