HR Analytics Market Analysis

HR Analytics Market Analysis

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Based on the deployment model the market is segmented into on-premise and cloud. The on-premise segment held a market share of over 61% in 2023. The factors driving the adoption of on-premise HR analytics deployment include data security and control, especially for sensitive employee information. Some organizations prefer to keep their HR data within their own infrastructure to ensure compliance with data privacy regulations and have more control over data access and storage. For instance, in 2022, Pfizer adopted an on-premise HR analytics solution to improve its compensation and benefits program. Additionally, on-premise deployment can offer faster data processing and reduced reliance on external internet connectivity.

The IT & Telecom segment held a market share of 23% in 2023. The demand for HR analytics across the IT & telecom sector is driven by the need to attract and retain top tech talent, optimize workforce productivity, and enhance employee experience. Analyzing data helps identify skill gaps, assess employee performance, and align talent development strategies. For instance, companies like Cisco have used HR analytics to gain insights into employee mobility, leading to improved workforce planning and talent retention strategies.

North America HR analytics market share is poised to exhibit commendable growth trends over 2023-2032. North America held a market share of over 34% in 2023. The adoption of HR analytics in North America is attributed to the region's strong emphasis on data-driven decision-making and its technologically advanced corporate landscape. Organizations in North America recognize the value of HR analytics in optimizing talent management, enhancing employee engagement, and improving overall HR operations. For example, companies like IBM have successfully utilized HR analytics to analyze workforce trends, identify high-potential employees, and implement targeted learning and development programs, leading to better business outcomes and increased employee satisfaction.