HR Analytics is the collection and application of talent data to improve critical talent and business outcomes. it helps leaders with essential data to improve function and employee experience.
2. INTRODUCTION:
HR is not any more pure support and back-office role in companies. The role of HR
has evolved into more active responsibilities like shaping business strategies and
proactively developing the workforce. But HR teams can’t do this successfully
without having the necessary data to support and influence people-related
decisions.
Analytics is a mental framework, a logical progression first and a set of
statistical tools. Analytics is defined as the science of analysis, from the Greek word
“analutika”, including the principles of mathematical analysis. .
In the past century, Human Resource Management has changed
dramatically. It has shifted from an operational discipline towards a more strategic
one. The popularity of the term Strategic Human Resource Management (SHRM)
exemplifies this. The data-driven approach that characterizes HR analytics is in line
with this development:
“HR Analytics is the systematic identification and quantification of the people
drivers of business outcomes”.
2
3. DEFINITION:
HR analytics is the process of collecting and analyzing Human Resource (HR)
data in order to improve an organization’s workforce performance. The process
can also be referred to as talent analytics, people analytics, or even workforce
analytics. The core of HR Analytics is the Metric. “Metric” can be said as data
that conveys meaning in a given context.
For example, if a software engineering firm has high employee turnover,
the company is not operating at a fully productive level . It takes time and
investment to bring employees up to a fully productive level.
HR analytics provides data-backed insight on what is working well and what is
not so that organizations can make improvements and plan more effectively for
the future.
3
4. DIFFERENCE BETWEEN HR ANALYTICS, PEOPLE ANALYTICS &
WORKFORCE ANALYTICS: The terms HR analytics, people analytics,
and workforce analytics are often used interchangeably. But there are
slight differences between each of these terms.
HR ANALYTICS: HR analytics specifically deals with the metrics of the HR
function, such as time to hire, training expense per employee, and time
until promotion.
PEOPLE ANALYTICS: The term “people analytics” may be applied to
analytics about the customers of an organization and not necessarily
only employees.
WORKFORCE ANALYTICS: Workforce analytics is an all-encompassing
term referring specifically to employees of an organization. It includes
on-site employees, remote employees, gig workers, freelancers,
consultants.
4
6. HOW DOES HR ANALYTICS WORK:
1)To gain the problem-solving insights that HR Analytics
promises, data must first be collected.
2)The data then needs to be monitored
and measured against other data, such as historical
information, norms or averages.
3)This helps identify trends or patterns. It is at this point
that the results can be analyzed at the analytical stage.
4)The final step is to apply insight to organizational
decisions.
6
8. WHY HR ANALYTICS:
8
• Global Organization
with workforce
analytics and
workforce planning
outperform by 30%
more sales per
employee-Cedar
Crestone
• To clearly
demonstrate
interaction of
business objectives
and workforce
strategies to
determine a full
picture of likely
outcome
•The business
demands on HR are
increasingly going
to be on analysis
just because people
are so expensive-
David Foster
•What gets
measured; what
gets managed;
gets executed-
PETER DRUCKER
Measure &
Manage
Return on
Investment
Performance
Imrovement
Linkage of
Business
objectives and
people
strategies
10. •PROS & CONS OF IMPLEMENTING HR
ANALYTICS:
PROS:1)More accurate decision-making can be had thanks to a data-driven
approach, which reduces the need for organizations to rely on intuition or guess-work
in decision-making.
2) Employee engagement can be improved by analyzing data about employee
behavior.
3) Recruitment and hiring can be better tailored to the organization’s actual skillset
needs by analyzing and comparing the data of current employees and potential
candidates.
CONS: 1)Many HR departments lack the statistical and analytical skillset to work
with large datasets.
2) Access to quality data can be an issue for some organizations who do not have up-
to-date systems and organizations need access to good quality analytical and
reporting software that can utilize the data collected.
3) Monitoring and collecting a greater amount of data with new technologies (eg.
cloud-based systems, wearable devices), as well as basing predictions on data, can
create ethical issues.
10