02 December 2020

People Analytics Tech 2020

Stacia Garr
Co-founder & Principal Analyst

Priyanka Mehrotra
Research Lead

TL;DR

  • The people analytics tech market responded effectively to customers’ 2020 needs
  • Currently there are at least 121 PAT vendors on the market; 1-year market growth rate was 35%, 4-year CAGR was 55%, current market estimate is $2 billion
  • Many solutions are not as user-friendly as vendors believe them to be
  • New capabilities include advanced NLP, deep machine learning, and the use of new, unstructured data
  • Special thanks to PAFOW and Insight222 for sponsoring this research and the PAT tool, as they did last year!

In 2020, due to the COVID-19 pandemic and the social justice movements, people analytics had an unexpected opportunity to shine. Technology played a more important role than before as people analytics team looked for ways to scale and provide deeper insights to leaders on their workforce, the majority of whom were working remotely. Our goal is to help people analytics leaders succeed in that endeavor and prepare for 2021.

Through this research, we wanted to understand:

  • How did the people analytics tech vendor market change in 2020?
  • What are the newest capabilities leaders need to know about?
  • What should leaders be thinking about when making (or expanding) a people analytics tech investment?

This study is a culmination of nearly a year of qualitative and quantitative research, that included an online poll, a vendor survey, a customer poll, and over 40 vendor briefings and demos. This flipbook highlights the changes and trends from this year, the different capabilities offered by the vendors, and the questions potential technology buyers should consider before making or expanding their tech investments. We also suggest readers check our interactive, evergreen people analytics tech tool, for current vendor information.

ABOUT THE AUTHOR

Stacia Garr

Stacia is a Co-founder and Principal Analyst for RedThread Research and focuses on employee engagement/experience, leadership, DE&I, people analytics, and HR technology. A frequent speaker and writer, her work has been featured in Fortune, Forbes, The New York Times, and The Wall Street Journal as well as in numerous HR trade publications. She has been listed as a Top 100 influencer in HR Technology and in D&I. Stacia has an MBA from the University of California, Berkeley, and a master’s degree from the London School of Economics.