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The HR Technology and DEI industry is experiencing significant growth driven by increasing regulatory scrutiny, a heightened focus on corporate social responsibility, and the imperative for organizations to foster inclusive workplaces. Data analytics and AI are becoming central to measuring and improving DEI initiatives, shifting from aspirational goals to measurable business outcomes. The market is competitive, with a strong demand for integrated solutions that offer both technology and consulting services.
Total Assets Under Management (AUM)
Global Human Capital Management (HCM) Market Size in United States
~32.1 billion USD (2023)
(10.3% CAGR)
The growth is driven by: - Digital transformation in HR processes. - Increased adoption of cloud-based solutions. - Demand for workforce analytics and talent management.
17.4 billion USD
XAI will allow HR professionals to understand the rationale behind AI-driven DEI insights and recommendations, ensuring fairness and transparency in talent decisions and mitigating bias.
Blockchain could secure DEI certifications and sensitive employee data, enhancing trust and compliance by providing immutable records and transparent data sharing controls.
Gamification will increase engagement and retention in DEI training programs, making learning more interactive and effective for employees across all levels.
This proposed federal legislation aims to strengthen the Equal Pay Act of 1963 by prohibiting employers from asking about salary history, strengthening remedies for pay discrimination, and increasing transparency in pay.
This would necessitate more robust pay equity audits and transparency features within HR tech platforms to help companies comply and avoid litigation.
The Equal Employment Opportunity Commission (EEOC) is increasingly focusing on the potential for AI and algorithmic tools used in hiring and employment decisions to create unlawful discrimination, issuing guidance and pursuing enforcement actions.
This requires HR tech providers to ensure their AI/ML models are free from bias, necessitating explainability features and regular audits to demonstrate fairness and compliance.
Effective January 1, 2023, California requires employers with 15 or more employees to include pay scales in job postings and mandates annual pay data reporting to the state, disaggregated by race, ethnicity, and sex.
This pushes HR technology vendors to develop or enhance features for pay equity analysis, salary band management, and automated reporting to support compliance for California-based businesses.
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