HR Analytics Consulting Service Market Size, Share, Growth, and Industry Analysis, By Type (Online Service and Offline Service), By Application (Large Enterprises and SMEs), Regional Forecast To 2031

Updated On: 08 April 2024

HR Analytics Consulting Service Market Report Overview

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The global HR analytics consulting service market size was in USD 2682.6 million 2022 & the market is expected to reach USD 6788 million by 2031, exhibiting a CAGR of 10.9% during the forecast period. 

The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The HR Analytics Consulting Service Market is a subset of the larger human resources (HR) and analytics industry. HR analytics, also known as workforce analytics or talent analytics, is the use of data analysis and statistical methods to analyses HR-related data in order to gain insights and make data-driven decisions about workforce management, employee engagement, talent acquisition, performance management, and other HR functions. The HR Analytics Consulting Service Market includes consulting firms and service providers who provide HR analytics expertise to organizations looking to improve their HR practices and decision-making using data-driven approaches.

Assisting organizations in collecting and integrating HR-related data from a variety of sources, including HR information systems, employee surveys, performance evaluations, and other relevant data points. Analytic techniques are used to detect patterns, trends, and correlations in HR data, allowing organizations to better understand their workforce and make educated decisions. Creating models and algorithms that forecast future HR outcomes such as employee turnover, engagement levels, and performance. Assisting organizations in developing key performance indicators (KPIs) and creating HR dashboards and reports to monitor HR metrics and track progress over time.

COVID-19 Impact: Remote Work and Workforce Shifts to Hinder Market Growth

During the pandemic, the broad shift to remote employment caused organizations to reassess their workforce demands and introduce new rules and practices. HR analytics consulting services aided organizations in adapting to these changes by delivering data-driven insights on remote work efficiency, employee engagement, and well-being. Due to the pandemic, several businesses suffered economic issues, resulting in employee restructuring, layoffs, or furloughs. As organizations negotiated the uncertainties, HR analytics consulting services were sought to assist them in analyzing their personnel data, identifying essential jobs, and planning for various future situations. Employees experienced extraordinary levels of stress and uncertainty as a result of the pandemic. HR analytics consulting services assisted organizations in measuring and monitoring employee engagement and well-being, allowing them to take appropriate actions to support them.

LATEST TRENDS

"Emphasis on Employee Experience to Enhance Market Growth"

HR analytics consulting services will most likely concentrate on analysing and improving the whole employee experience. Using data to identify pain areas in the employee journey, optimising procedures, and establishing a good work atmosphere that supports engagement and productivity are all part of this. As the subject of human resource analytics evolves, there is a rising interest in moving beyond descriptive analytics (understanding what happened) to predictive (predicting what might happen) and prescriptive analytics (suggesting actions to take). Consulting businesses may provide more sophisticated prediction models to assist organisations in anticipating workforce trends and making proactive decisions. With a growing understanding of the importance of employee well-being, HR analytics consulting services may establish metrics and strategies to assess and improve workplace mental health and well-being.

HR Analytics Consulting Service Market Segmentation

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• By Type

Based on type market is classified as online service and offline service.

• By Application

Based on application market is classified as large enterprises and SMEs.

DRIVING FACTORS

"Data-Driven Decision-Making to Augment Market Growth"

Organisations are increasingly seeking the expertise of HR analytics consulting services as they recognise the importance of data-driven decision-making in human resources. Businesses may enhance efficiency and productivity by leveraging data and analytics to make more informed and objective HR choices. Organisations are putting more attention on optimising their talent acquisition and management strategies in today's competitive business landscape. Human resource analytics consulting services assist organisations in identifying important skill gaps, improving workforce planning, and developing data-driven recruitment and retention strategies. Employee retention and engagement are critical for organisational success. Human resource analytics consulting services provide insights into the elements impacting engagement and identify potential retention issues, allowing businesses to undertake focused measures to increase employee satisfaction and reduce turnover.

"Emphasis on Diversity, Equity, and Inclusion (DEI) to Propel Market Growth"

Organisations are seeing the value of cultivating diverse and inclusive environments. HR analytics consulting services aid in the measurement of DEI metrics, the identification of areas for improvement, and the development of plans to promote diversity and equality. The pandemic of COVID-19 has expedited the adoption of remote and hybrid work methods. By analysing remote work productivity, employee well-being, and other pertinent data, HR analytics consulting services assist organisations in adapting to these new work arrangements. Employers are placing a greater emphasis on employee well-being and mental health. Human resource analytics consulting services are critical in evaluating well-being measures, understanding employee pressures, and implementing wellness programmes.

RESTRAINING FACTORS

"Data Privacy and Security Concerns to Impede Market Expansion"

Organisations frequently deal with sensitive employee data, and the use of HR analytics poses data privacy and security risks. Compliance with data protection requirements, such as GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act), can be difficult, and organisations may be unwilling to share data with outside consulting firms as a result. HR analytics attempts can be hampered by poor data quality or the absence of integrated HR systems. Inadequate or inaccurate data might lead to untrustworthy findings, making it difficult for HR analytics consulting firms to give useful advice. Some organisations may be averse to implementing data-driven HR practises, especially if they have long depended on traditional techniques. HR professionals and other stakeholders may object.

HR Analytics Consulting Service Market Regional Insights

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"North America to Dominate the Market Due to Mature HR Ecosystem Facilitates"

North America has led the way in technology advances such as big data analytics, artificial intelligence, and machine learning. These technologies are critical in driving HR analytics projects, and the region's competence in technology adoption has contributed to its position as a pioneer in HR analytics consultancy. The North American HR industry is well-established and has a long history of implementing data-driven practises. This mature HR ecosystem facilitates the expansion of HR analytics consulting services. Numerous global firms and a diversified workforce with varying skill sets and talent demands may be found in North America. To remain competitive, HR analytics consulting services are in high demand to assist organisations in optimising their people acquisition, management, and development strategies.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Satrix Solutions (U.S.)
• Analytic Focus (U.S.)
• Boston Consulting Group (U.S.)
• BrookeWealth Global (U.S.)
• Emeritis (U.K.)
• PwC (U.K.)

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the ssegmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Aanalysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.