Human resource analytics (HR analytics) refers to applying analytic processes to human resource data to improve employee performance and return on investment. While many organizations have large amounts of HR data, they often struggle to use it effectively to predict workforce trends, minimize risks, and maximize returns. HR analytics uses past data to provide data-driven insights for decisions around recruiting, hiring, onboarding, training, and retaining employees. This helps companies predict attrition, identify the best candidates, forecast compensation needs, and improve employee engagement and satisfaction. Tools commonly used for HR analytics include Microsoft Excel, Power BI, IBM SPSS, SAS, and programming languages like Python and R.