Talent Management & Organization Transformation Consulting Market Size [2031]

Report Description

Talent Management & Organization Transformation Consulting Market Outlook 2031

The global talent management & organization transformation consulting market size was USD XX Bn in 2022 and is likely to reach USD XX Bn by 2031, expanding at a CAGR of XX% during 2023–2031. The market growth is attributed to thegrowing need for employee engagement and satisfaction across organizations due to changing business dynamics.

Increasing focus on workforce engagement and satisfaction is contributing to significant improvement in employee performance and the overall output of businesses globally. Due to stiff competition, many organizations are trying to find an edge to stand out over other competitors with innovative talent management and organization transformation programs. To implement such practices, consultancy services are hired to get maximum outcomes and benefits, which is expected to contribute to the growth of the market.

• According to a study published by Gallup, an American analytics organization, teams with lower engagement rates recorded 18% - 43% higher employee turnover as compared to teams with greater engagement rates across businesses. Additionally, these units also showed significant differences in performance for the following factors: Absenteeism (81%), Shrinkage (28%), Quality (41%), Customer Engagement (10%), Productivity (18%), and Profitability (23%).

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Due to globalization and the increasing importance of employee rights and welfare, businesses have realized the importance of talent management to transform their organizations. This increase in demand led to an influx of talent management and organization transformation consulting businesses, which is expected to propel the market.

The research report finds that the COVID-19 pandemic had a severe effect on themarket. Due to rising unemployment and a complete shift in the work structure, employee engagement and evaluation took a back seat for businesses across the globe. Additionally, staff satisfaction was at an all-time low due to pay cuts and budget constraints.

Artificial Intelligence (AI) Impact onTalent Management & Organization Transformation Consulting Market

The introduction of artificial intelligence tools is expected to have a notable impact on the market. These tools are likely to make it easier for HR departmentsand consultancies to process large amounts of data and create unique solutions for complex problems.Hiring departments in larger organizations use AI to streamline hiring processes. They use AI to create relevant screening filters and job postings targeted towards a specific demographic. For instance,

• For instance, Pymetrics is an AI platform that screens potential candidates based on data-driven insights. This results in a much more fair, balanced, and efficient hiring process. Itdirects candidates to job opportunities that match their skill sets.

• According to a recent report, about 49% of potential candidates had rejected a job offer due to poor recruiting experiences. Therefore, many businesses are relying on technology such as AI and skill assessment tests to recruit prospective employees.

Talent Management & Organization Transformation Consulting Market Dynamics

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Major Drivers

Increasing globalization and the growing focus on employee welfare is one of the key drivers of the market. Companies are turning to professional consulting services to help them with this task. These firms optimize recruitment processes and restructure large-scale businesses through strategic, step-by-step programs.Additionally, the growing number of small-scale businesses and unique market niches has resulted in the proliferation of talent management and organization transformation consultancy firms.

• According to NMS Consulting, the net worth of the management consultancy domain is expected to be a massive USD 330 billion in 2023 and is forecasted to reach USD 345.5 billion by 2025. The UK showed the greatest growth rate at 8% which is GBP 6.79 billion. In the US, the industry reached an enormous USD 55 billion in 2023 with a growth rate of 7.7%.

Existing Restraints

High capital required for quality consultancy services is likely to hinder the market.  Implementation of organizational transformation processes suggested by consultancy firms requires considerable budget, manpower, and time. This is not feasible for several small or medium-scale businesses.Several old-school businesses are resistant to change and are averse to implementing new organizational processes, which is expected to create restraints in the industry.

Emerging Opportunities

Emergence of online and social media marketingis projected to create several lucrative opportunities for the players in the talent management & organization transformation market. More and more companies are consulting professional business services, to help them adapt to the changing business and employment welfare software solutions. The growing digitization across sectorsled to numerous firms opting for these consultancies. Marketing and social media professionals help brands to effectively engage with their audience which helps to build the company's reputation.

Scope of the Talent Management & Organization Transformation Consulting Market Report

The global research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Product Type Analysis

Based on product type, the talent management & organization transformation consulting market is bifurcated into talent management and organization transformation.The talent management segment is expected to expand at a significant growth rate in the coming years, as a result of the implementation of new, innovative technologies and the adoption of ingenious HR solutions.Up skilling programs and employee-based LMS strategies are some of the common initiatives suggested by business consultancies.

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• According to the World Economic Forum’s The Future of Jobs Report 2023,six in 10 workers are expected to require training prior to 2027. However, only half of this number has access to adequate training opportunities. A major chunk of these training programs is likely to include analytical thinking (10%) and creative ideation (8%).

The organization transformation segment is projected to exhibit considerable growth in the coming years. The increasing expansion of industries has contributed to the substantial economic development of most regions across the world. It has imposed significant pressure on firms to out perform each other and rise to the top. Due to increasing competition, many businesses are expected to adapt to modern, high-end practices. Several businesses all over the globe, turn to organizational transformation consultancies to help them adjust to these methods. This has led to a substantial rise in organizational transformation businesses.

Application Analysis

On the basis of application, the global market is segregated into large enterprises and small & medium enterprises.The small & medium enterprises (SMEs) segment is projected to expand at a considerable CAGR during the forecast period, owing to the growing globalization, commercialization, and capitalization of goods and services.Due to limited resources and lack of manpower, small-scale businesses do not always have well-structured HR departments or efficient talent management plans. This causes them to rely on external talent management consultancies.

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Regional Outlook

In terms of region, the global talent management & organization transformation consulting market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to the continual development and adoption of novel, state-of-the-arttechnologies across different sectors.

The majority share of businesses in North America are small & medium scale enterprises. Thereis a growing focus on inclusivity across businesses, due to major economies in this region such as the US and Canada, being a melting pot of different cultures. These factors are propelling the dependence on consultancy services for better implementation of policies.

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The market in Asia Pacific is projected to witness the fastest growth over the forecast period, owing to the introduction of digitization and innovative solutions and the increase in foreign direct investments (FDI). A significant shift in the organizational structure has been observed in this region in recent years.Due to the burgeoning population growth and a high percentage of the working population, talent management is becoming imperative in this region.

• According to the World Economic Forum's Markets of Tomorrow Report 2023, a high percentage of organizations in the Asia Pacific invest most of their resources in education and workforce development.

• According to an article published by Amazon Web Services (AWS) in November 2022, learning programs based on digital transformation are given high priority in the Asia Pacific. Statistics showed that the majority of non-tech workers reported improvement in efficiency and productivity (88%),due to digital skills training solutions.