The marketfor HR analytics is expected to reach $3.9 billion by 2025, risingat a compound annual growth rate of 13.6 percent, the authorsforecast. (Image: Shutterstock)

The use of HR analytic tools is on the rise, as HR professionalsincreasingly analyze workforce data to improve organizationalculture and employee productivity, according to the “Global HR Analytics Market (2019-2025)” reportoffered on ResearchAndMarkets.com.

Indeed, the market is expected to reach $3.9 billion by 2025,rising at a compound annual growth rate of 13.6 percent, theauthors forecast.

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“Running machine learning algorithms on a jobseeker's data helpscompanies to catch the best matching talent for a vacant position,thereby improving the quality of recruitment,” the authors write.“Similarly, using employee data, recruiters can recognize a patternof high performing employees and accordingly modify their employeehiring and retention strategy.”

HR analytics can also pinpoint which areas within anorganization have the highest employee turnover — and why, accordingto the report. Such tools can also aid HR professionals indetermining which activities can boost employee engagement.

The market analyses are broken down by HR functions such asworkforce management, retention, recruitment, payroll and employeeengagement; functionality within the analytical tools; whether thetools are on-premise or cloud-based, specific industries utilizingsuch tools; and utilization depending on organizational size, amongother analyses.

“An increasing need to analyze employee data for achievingorganizational goals is expected to drive HR analytics adoptionamong large enterprises,” the authors write. “Furthermore, there isa growing focus on improving operational efficiency and profit,which is expected to boost the growth of the market in small andmedium-sized enterprises segment.”

Indeed, the HR analytics market for SMEs is expected to grow ata higher compound annual growth rate than the market is for largerorganizations, according to the report.

“More than larger enterprises, the SMEs face a greater resourcecrunch and require better methods to solve the complexities forcost optimization on their assets and requirements,” the authorswrite.

The report also profiles key companies in the HR analyticsmarket, including Oracle Corp., SAP SE, Infor Inc., The Sage GroupPlc., IBM Corp., Microstrategy Inc., ZOHO Corp. Pvt. Ltd., SisenseInc., Visier Inc. and Workday Inc.

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