HR analytics involves collecting workforce and organizational data to gain insights and improve effectiveness. This data can be used to identify weaknesses and boost efficiency, productivity, retention, training, and the bottom line. HR analytics answers questions about turnover rates, who may leave, who deserves promotions, employee value, and more. HR teams use analytics to understand their workforce, efficiently deploy resources, and plan for the future.

1. What is HR analytics?
HR analytics involves collecting data and key metrics
on your workforce and organization to gain valuable
insights and better understand their effectiveness.
With this data, you can spot weaknesses across the
business and improve these to boost efficiency,
productivity, retention rates, training effectiveness,
and more—all of which will benefit your bottom line.

3. Definition
Human Resource analytics (HR Analytics)
is defined as the area in the field of
analytics that deals with people analysis
and applying analytical process to the
human capital within the organization to
improve employee performance and
improving employee retention.

4. For example, using HR analytics you can answer the
following questions about the organization’s HR system:
• How high is your employee turnover rate?
• Do you know which of your employees will leave your organization
within a year?
• How many employees deserve a promotion?
• What is the employee value and retention rate?
• What percentage of employee turnover is regretted loss?
• As soon as an organization starts to analyze their people problems
using the collected data, they are engaged in active HR analytics.

5. HR teams use HR analytics for three important reasons.
Understand their workforce.
Efficiently deploy resources.
Plan for the future.

6. Need of HR Analytics

8. The metrics based on which HR Analytics is measured

9. 1. By measuring ___________, recruiters can alter their recruitment
strategy to identify areas where the most time is being spent
a) time to hire
b) revenue per employee
c) time to fill
d) None of these

10. 2. ________ is a productivity metric
a) Human capital risk
b) Absenteeism
c) Time to fill
d) Time to hire

11. 3. Which of the following is not a principal outcome of HR analytics?
a) generating revenue
b) getting income
c) minimizing expenses
d) mitigating risks

12. 4. HR Analytics deals with
a) metrics of HR
b) Training expenses
c) time to hire
d) All of these

13. 5. ________ is a measure of how efficient an organization is at
enabling revenue generation through employees
a) revenue per month
b) revenue
c) revenue per employee
d) None of these

14. 6. Employee experience that are leading to voluntary attrition
a) Voluntary turnover rate
b) Involuntary turnover rate
c) Both
d) None of these

15. 7. ________ refers to data obtained from the HR department of an
organization
a) Internal data
b) External data
c) Both
d) None of these

16. 8. Which of the following is a key metric of HR Analytics?
a) revenue per employee
b) offer acceptance rate
c) voluntary turnover rate
d) All of these

17. 9._________ is expected to become an integral part of HR teams
a) Data scientists
b) officers
c) Both
d) None of these

18. 10. ________ is the interpretation of data patterns that aid decision-
making and performance improvement
a) Analytics
b) HR
c) Statistics
d) None of these

19. • https://www.analyticssteps.com/blogs/what-hr-analytics-role-
challenges-and-applications
• https://www.naukrirms.com/blog/the-importance-of-hr-analytics/
• https://intellipaat.com/blog/hr-analytics/
• https://datasemantics.co/why-human-resource-professionals-need-
hr-analytics/
• https://www.questionpro.com/blog/hr-analytics-and-trends/
• https://www.acmecollinsschool.com/hr-analytics-free-test.html

20. Meaning – Workforce Planning
Workforce planning is the process of
analyzing existing employees and planning
for future staffing requirements through
talent gap assessment, developing employee
management procedures, and setting
recruitment strategies.

22. How to conduct a workforce analysis
1. Define a challenge you want to address
Does your current workforce have the skills needed to launch a new product line with
minimal training?
Will they respond well to these changes and remain loyal to the organization?
If you need to hire more employees, how many do you need?
And will you find those with the skills required to perform in the labor market?
What will your organization need to do to attract and retain those employees?
Will any other changes in demand affect the number of employees you need?

23. 2. Collect relevant data
Once you know the challenge you want to
address, the next step is to collect the
relevant data needed to measure this. This
could include workforce demographic data,
skills data, performance data, training
completion data, employee survey results.

24. 3. Decide on the right analysis method
The next step is to decide
which analysis method is most
suitable for analyzing your
data sets. Here are some of
the most common methods

25. • Trend analysis refers to comparing data over a set period in the past to
identify any trends.
• Correlation analysis is used to study the strength of a relationship between
two variables(Lack of training causes low employee enagement)
• Predictive analysis uses a combination of historical data to predict the
likelihood of future outcomes based on past data so that businesses can
make accurate forecasts.
• Prescriptive analysis relies on historical data. It is typically used after
predictive analysis to plan the most suitable course of action for the
organization to meet its goals.
• Diagnostic analysis identifies the causes of success or failure within a
workforce, which can be used to correct failures and boost business
performance.

26. 4. Analyze and present the results
Once you’ve selected the most appropriate analysis method,
the next step is to conduct the analysis and then present the
findings to relevant business leaders and stakeholders.
You can display the results as a dashboard or in a report—
what’s important here is that it’s clear and easy to
understand.

28. 5. Determine what action you’re going to take
The final step in conducting a workforce analysis is to determine the
most suitable course of action for the business.
For example, if your results identify a future skills gap over the next 12
months, now is the time to plan how you will avoid this. This might
mean training existing employees or hiring as many new ones as needed
with the right skills and integrating them into the existing team.

30. •The right people
•With the right skills
•At the right place
•At the right time
•At the right cost
When these conditions are met, your workforce is
dignified to deliver on your business goals effectively for
the long-term.

31. MCQ
Administrative process efficiency is the type
of HR efficiency that refers to the capacity to
conduct existing HRM processes accurately
and on time while minimizing costs.
• True
• False

35. 5. It is a good source of filling the vacancies
with employees from over staffed
departments.
(a) Transfer
(b) Promotion
(c) Placement agencies
(d) Government exchanges

36. 6. This analysis would reveal the number and type
of human resource available within the
organization.
(a) Workload analysis
(b) Breakeven analysis
(c) Workforce analysis
(d) All of the above

37. 7. Workforce analysis would enable to know
whether the organization is
(a) Understaffed
(b) Overstaffed
(c) Optimally staffed
(d) All of the above

38. 8. Which of the following is not a benefit of
training and development to an organization?
(a) Help to avoid wastage of efforts and money
(b) Enhance employee productivity
(c) Lead to better career of the individual
(d) Reduce absenteeism and increase employee
turnover

39. 9. Which of the following activities lie within the scope of
Human Resource Department?
(a) Formulating compensation and incentive plans
(b) Ensuring healthy labour relations and union
management relations
(c) Creating provision for social security and welfare of
employees
(d) All of the above

40. 10. Identify the correct sequence of the steps involved in the
staffing process
(a) Recruitment, Estimating the Manpower Requirements,
Placement and Orientation, Selection
(b) Estimating the Manpower Requirements, Selection,
Placement and Orientation, Recruitment
(c) Selection, Estimating the Manpower Requirements,
Recruitment, Placement and Orientation
(d) Estimating the Manpower Requirements, Recruitment,
Selection, Placement and Orientation

41. • https://www.aihr.com/blog/workforce-analysis/
• https://www.insperity.com/blog/strategic-workforce-planning/

43. Talent Sourcing and Acquisition Analytics
Finding and hiring the right talent has become the top priority for many businesses.

44. Recruitment advertising fees and staff time
Relocation and training fees for replacement hires
Negative impact on team performance
Compromised quality of work
Less productivity
Disruption to projects
Lost customers
Weakened employer brand.

45. How to avoid bad hire?

48. According to LinkedIn’s Global
Recruiting Trends 2018, 50% of hiring
professionals use big data as part of
their strategy, which has helped them
with talent acquisition and increased
their employee retention by 56%.

57. Drive High Quality Hires with Talent Acquisition Analytics
• Candidate Pipeline

58. Channel Effectiveness Analytics

59. Candidate Experience Survey

60. • https://www.talentlyft.com/en/blog/article/233/talent-acquisition-
analytics-what-it-is-why-it-matters
• https://www.peopleinsight.com/talent-acquisition-analytics-overview