The HCM market will be the fastest growing market until the year 2021. According to an article by Marketsandmarkets, one of the largest analytics companies in the world, the HCM market will have a growth of almost 10 percent until 2021. From 14.50 billion U.S. Dollars to 22.51 billion U.S. Dollars in 4 short years. Within that market, HR analytics will be one of the third largest areas of growth.
Why analytics is one of the largest areas of growth
There are different reasons to why the HCM market is growing so fast, but one of the biggest factors and driving forces is managing a widespread workforce — located at different places. That is interesting and important, but for us something even more important is the need for workplaces to find the right sort of talent. HR analytics makes this possible.
Not only is this data coming from one of the largest analytics companies in the world; we know that HR analytics makes a huge difference in finding the right and the best sort of talent. Like we have written before — a time consuming and complicated job application tool and a bad application process scares away the best candidates. The only way we, and the companies that actually work with HR analytics, know this is through making inquiries and sending out surveys to every single applicant that has been through one or more steps in the application process.
To elaborate — working data driven and with key numbers makes it possible to actually measure the result of a company’s developmental project. Today, there are new projects launching continuously — regarding everything from optimization of websites to external training programs. When using analytics, systematic measuring and the opportunity to follow up on results — companies are able to work smarter and more efficient in order to develop in the right direction.
Through these, we know that the HCM market have been and still is behind when it comes to digitally evolving and that it is in great need of adopting a more service minded and data-driven approach when it comes to the recruitment processes.
When you consider the fact that companies have been not only missing out on, but actually losing, the best candidates for differents job positions, it’s not strange that the HCM market and everything it holds will be the fastest growing market these upcoming years. Many companies still have the notion that they set the rules for recruitment processes, but today the roles have shifted. The market is more and more being controlled by the candidates and they set the rules — which means that if companies want to attract the best talent they need to start understanding their needs and expectations. Just the fact that there are tons of articles telling companies what it takes to attract and then keep the talent is proof of this shift. No company wants to lose excellent candidates and if they do loose those candidates they still need them to have had a positive experience and need them as promoters for their brand in the future.
To sum things up; we believe that analytics will keep growing since the market is growing, more investments are coming in and digital transformation is just at the beginning of its journey. Investment and change will always increase the demand for measurability and follow ups.
Just take a look at other markets that have travelled along the same route.
Marketsandmarkets think so — and so do we.