Economic uncertainty, power struggles, technological advances and generational shifts are just some of the challenges organizations have been faced with over the last couple of years. For HR, this has meant layoffs, hybrid headbutting, an increase in the frequency of disruptions to work, and growing tensions and stress in the workplace.
People analytics technology (PAT), which enables users to analyze data and is designed intentionally to use data about people, has been a beacon of light in providing HR with the data and insights it needs to approach these issues successfully.
It’s no surprise, then, that demand for PAT has grown significantly over the last few years. In our 2023 study, we found that:
- The number of vendors in the market increased by 11% from 2021 to 2022. In 2021, we identified 135 PAT vendors in the market. For 2022, we identified a total of 150 vendors.
- The overall people analytics technology market grew to an estimated $5.6 billion in 2022 from $3.1 billion in 2021.
It experienced a growth rate of 41% for 2021-22 and a 50% CAGR (compound annual growth rate) for the last 3 years. People analytics practitioners now have more options for technologies to choose from than ever before.
Unfortunately, this growth in the number of vendors has not translated into better customer satisfaction. Over the last few years, we’ve seen a decline in customers’ satisfaction with their people analytics technology, from an NPS of 67 in 2020 to 50 in 2022 (Figure 1).
Some of the reasons shared by customers included:
“At this moment, [the solution] has many small inconsistencies. It could easily provide bad information if fully ‘trusted’ and not validated.”—Midsize agriculture/construction/mining company for an HCM/HRIS solution
“They are growing quickly and losing some of the excellence that we are used to.”—Large healthcare company for a multisource analysis platform
“Needs to be more customizable.”—Midsize hospitality/food service company for an HCM/HRIS solution
Given this decline in customer satisfaction, growing competition and a shift in customer needs, we want to point out the vendors that continue to satisfy their customers and receive high NPS.
FunctionHR, OrgMapper/Maven 7, Polinode and Syntell received an average NPS of 70 or above, while Crunchr and Orgnostic received an average NPS of 100.
This year, for our fifth annual People Analytics Technology study, we want to better understand what the vendors are getting right and wrong about their user needs. For that, we need your input.
If you use people analytics technology, then please take our survey. User feedback will help us shine a light on the following:
- The extent to which people analytics technology is providing value to its current users,
- What vendors are doing well, and
- Areas vendors need to improve in.
It will take only seven minutes of your time. As a thank you, RedThread will donate $10 per response to classrooms where over 75% of students are from economically disadvantaged backgrounds and will share a copy of their executive summary of the People Analytics Technology report.
Take our poll at RTR Customer Poll. If you have any questions or comments, please reach out to us at hello@redthreadresearch.com.
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