RedThread Research Releases Fourth Annual People Analytics Technology Vendor Landscape

The 2023 report reveals that vendors experience greater customer satisfaction and increased usage of people analytics technology when they expand access to data and insights.

WOODSIDE, Calif., June 28, 2023 /PRNewswire/ -- RedThread Research, human capital analysts and thought leaders, today released their 2023 People Analytics Technology Vendor Landscape, the highly anticipated analysis of the state of providers of people analytics technology (PAT), how companies are using the software, and how each vendor utilizes its capabilities to serve its different audiences.

The vendor landscape report represents five months of qualitative interviews, demos and quantitative research with 49 vendor surveys and 113 customer surveys. RedThread's PAT report is considered the most authoritative, unbiased voice on people analytics technology.

This year's report shows that, while PAT solutions are maturing, customer expectations have shifted. As a result, vendors saw a drop in customer satisfaction because they were misaligned with these changing needs. However, data in the report also provides some good news for vendors: Long-term use of their technology and democratizing the data led to higher Net Promoter Score (NPS) scores (higher customer satisfaction). Customers who have used a research participant's PAT solution for over two years were 1.2 times more likely to give a positive NPS.

All of that insight from this year's report drives home a serious challenge for PAT vendors: They must find ways to demonstrate value as adoption of their technology increases and people analytics evolve within an organization.

"The research shows that what organizations need from people analytics has changed, putting more emphasis on PAT solutions to serve the needs of people, not to be simply a place to collect and analyze data about people," said Stacia Garr, RedThread co-founder and co-author of the report. "In other words, we need to get the data into people's hands so that they use it to make informed decisions or improve EX, for example. Our findings suggest that decentralizing people data across an organization will lead to better customer satisfaction, likely because it enables more people to make better decisions."

Other themes that emerged from RedThread's 2023 PAT research include:

• Customer NPS scores fell 8 percentage points this year, a trend that continued from the previous year's study.
• PAT solutions need to target more user types, focusing first on HRBPs and people managers, because they are the two groups capable of driving widespread adoption of PAT solutions in organizations.
• As the use cases for people analytics shift and PAT matures within an organization, the demands for people data are also shifting, calling for a new PAT framework.

"With greater importance placed on different user types and evolving needs for people data, we knew that a fresh lens was needed through which organizations could understand the market," said Priyanka Mehrotra, RedThread senior analyst and co-author of the PAT report. "The realignment that we provide in the report can help to explain vendors' market approach, shine a light on data democratization and access and prepare for the budget and buying processes."

The full report is only available to RedThread members. To learn more about the report, register here for a public webinar tomorrow (June 29), at 1 p.m. EST. 

The PAT report is sponsored by the RedThread Tech Consortium, a community of software vendors who have demonstrated a strong commitment to supporting high-quality, unbiased industry intelligence. The 2023 PAT report is the first to be sponsored by the Consortium, which has 25 members including: Augmentir, Axonify, Betterworks, Claro Analytics, Cornerstone, Crunchr, Degreed, Eightfold, Lightcast, Medallia, Microsoft, NovoEd, Perceptyx, Quantum Workplace, Reejig, SeekOut, SplashBI, Skillable, SplashBI, TechWolf, Top Employers Institute, Torch, Tribute, Visier and Workday. Though they sponsor RedThread's work, Tech Consortium members do not in any way influence the research outcomes or content.

Individuals interested in joining the RedThread member research community and companies interested in joining the Tech Consortium can learn more on the RedThread website at https://members.redthreadresearch.com or reach out to RedThread by emailing [email protected].

About RedThread Research 

At RedThread Research, we get it. 

Sure, we're experts in performance, people analytics, learning, and D&I — and we're well-versed in the technologies that support them. But we're also truth-seekers and storytellers in an industry often short on substance, and too full of #!%. Our mission (indeed, our very reason for existing) is to cut through the noise, and amplify what's good. We look for the connections (or red threads) between people, data, and ideas — even among seemingly unrelated concepts. The result is high-quality, unbiased, transformative foresight that helps you build a stronger business. 

To learn more, visit:  http://www.redthreadresearch.com    

SOURCE RedThread Research