The people analytics technology (PAT) market is estimated to be worth more than $3bn following unprecedented growth in the sector over the past 12 months, a report from RedThread Research revealed.
The rate of growth in people analytics technology increased by 53% in 2021 compared with 2020 and has largely been fueled by employers wanting to improve employee experience in a bid to thwart The Great Resignation. Demand for real-time and verifiable labor market data is soaring because these insights give organizations the ability to forecast and adapt to the rapidly changing global labor market, which is not possible when relying on market data that’s already a few months old.
Talent intelligence platforms, such as Claro Analytics, also give organizations the ability to assess and benchmark compensation data by location, skills, and position while providing historical salary trends and salary insights.
RedThread Research analyzed 58 vendors, including Claro Analytics, in its People Analytics Technology 2022 report, to understand what’s happening in the market. It found that nearly half of the vendors in the study received investment in 2021, while a third said they’d either acquired another company or had been acquired themselves.
Claro Analytics was acquired by global talent solutions leader WilsonHCG earlier this year as it continues to enhance its talent intelligence and people analytics capabilities.
Commenting on the phenomenal growth in the PAT market, Michael Beygelman, EVP of product at WilsonHCG and founder of Claro Analytics, said “As the labor market continues to be competitive, organizations will rely on people analytics technology to make more informed, strategic business decisions. Companies need access to real-time labor market data to ensure they can keep up with talent and other business demands.”
Visit the RedThread website to view the full report.