The field of human resource management has changed dramatically over time and continues to evolve rapidly. In addition to the “human” side of running an organization, HR professionals are increasingly relying on technology and data. Human Resource analytics emerge as a result of the increasing usage of data in HR processes. A key part of an organization’s success is making data-driven decisions with HR analytics. More than 70% of executives prioritize people analytics. In three years, HR analytics will grow by 90%.
The purpose of this article is to explain what HR analytics is, its benefits, and its critical role in HR.
What Is HR Analytics?
HR Analytics are specialized forms of data analytics that use employee-related data and analytical processes to improve HR performance levels and employee retention. Management can use the collected data to make informed decisions about attrition rates and employee retention.
HR analytics is important to address the following questions:
HR analysts study and analyze various types of datasets to answer these questions. A company that engages in HR analytics for its employees’ benefit deeply collects HR data and draws insights from it.
Role of HR Analytics in Organization
The use of analytics is revolutionizing HR just as it has revolutionized marketing. HR analytics aims to provide insights into how to manage employees and reach business objectives. The availability of so much data makes it imperative for HR teams to determine which data is most relevant and how to utilize it best. It can be achieved with HR data analysis.
The role of HR Analytics in an organization is:
Benefits of HR Analytics
This benefits both the organization and the employees.
For an Organization
For the Employees
Impact of HR Analytics on Business
HR Analytics impacts businesses in the following ways,
Examples of HR Analytics
Here are some real-life examples of how analytics are used in HR management:
HR will use analytics to gain deeper insights into employee engagement’s contribution to the organization’s overall financial performance. The employees’ performance data will be collected for a given period, as well as the financial performance data of the organization. By analyzing the data, HR can formulate more effective employee engagement and performance management policies in the future.
Analytics assist HR teams in hiring and recruiting. To hire for a particular role, the candidate details and data related to that role will be fed into the system. A pre-programmed algorithm will provide HR teams and recruiters with shortlisted candidates whose profiles match the job description. Through this method, we can hire the right candidates as well as save a lot of time by eliminating multiple interviews.
For example, let’s say an organization’s department is experiencing an increase in employee attrition. HR analytics can help identify the root cause of the problem by analyzing historical data on ex-employees, ex-employee feedback, and employee profiles. The candidate hired might not have matched the job role, which led to him/her leaving the organization. HR analytics can identify a variety of reasons.
HR Analytics Tools
R is the most used HR analytics tool. Other tools are Bamboo HR, Sage HR, Picked, Tableau, etc. Investment in human resources can be implemented effectively using such HR analytics tools. The initial cost of deployment of such tools may seem significant, but analytics tools save you a lot of time and other resources in the long run.
Many business objectives can be leveraged using analytics. For example, business analytics is used to determine pricing in a department store based on past and present information. In this way, business analytics is used in today’s business scenario.
With HR Analytics, you can monitor and improve employee engagement, retention, wellness, productivity, experience, and work culture. This analytics also helps in hr training and development.
Jigsaw Academy offers the most comprehensive interactive learning programs across various emerging technologies in the industry. Jigsaw Academy provides 3-month certification in People Analytics & Digital HR course in collaboration with IIM, Indore.