HR Analytics

 Table of Contents

1 Introduction

2 What is HR Analytics?

3 Importance of HR Analytics

4 Key metrics for HR Analytics.

5 Best Practices for HR Analytics

6 How can HR Analytics be used to Improve the Organization?

7 HR Analytic Software

8 Benefits of HR Analytics

9 HR Analytics trends from 2020

Bibliography

1. Introduction

HR analytics can be termed as the gathering, analyzing and reporting of Human Resources Management Data. This technique is used to obtain a better knowledge of employees and the performance of the Human Resources team. The data analysis will be a major assistance in showing the company the right direction going forward in order to obtain maximum benefit from payroll, benefits, hiring ability or retention ability and much more. (White & Bottorff, 2023)

Figure 1: HR Analytics (White & Bottorff, 2023)

2. What is HR Analytics?

This is considered the identification and analysis of employee specific drivers of the organization in a systematic manner. In other words, it is the measurement of the good and bad when it comes to the organizational performance in terms of the employees. Depending on the Company, HR Analytics may be termed differently. Following are some terms used for HR analytics: (White & Bottorff, 2023)

  • Workforce Analytics.
  • Talent Analytics.
  • People Analytics.

Using proper software for HR analytics permits managers to use real data people-based decisions instead of gut feelings. This analysis can provide insights on employee performance and also where prospective candidates drop off in the hiring process. Analysis of HR related data measures a broader measure of many types of different data, but it depends on the people function. (White & Bottorff, 2023)

3. Importance of HR Analytics

HR analytics first started as a hope for organizations to improve business processes related to Human Resources management. The following are some examples of business processes that would benefit from HR analytics: (White & Bottorff, 2023)

  • Payroll.
  • Benefits.
  • Hiring.
  • Employee Onboarding.
  • Employee Performance.
  • Overall Employee morale.

If the analytics have not been conducted in a proper manner, the is an extremely high possibility that the Organization could loose on revenue without their knowledge due to the fact that the business processes do not work well with the employee executing the process. The measurement of the data on the employees will provide the organization with a better vision and management of employees overall. (White & Bottorff, 2023)

If the analytics on HR related data have not been executed in a proper manner, the Senior Management will have difficulties in making business related to the following: (White & Bottorff, 2023)

  • Hiring.
  • Firing.
  • Promoting.

If employees start feeling that their performance is not noticed by the Management of the organization, it will become challenging to retain the employee who are high performing. If there is no proper oversight of the data, it will also start becoming challenging to reduce the low performers in the organization. The correct data will provide a protection legally for decisions and actions taken against unsuitable employees, as there is a basis behind them. (White & Bottorff, 2023)

Figure 2: Importance of HR Analytics (Valamis, 2023)

4. Key metrics for HR Analytics.

There are many metrics that can be used for HR related analytics can be used by organizations, but the correct metric(s) for your organization will majorly depend on the learning requirements and the objective. The Key metrics for the HR Analytics will be normally analyzed by Organizations that plan to keep a track on data related to their employees. The following are some key metrics that can be used as an initiating point for your organization’s HR analytics program. (White & Bottorff, 2023)

  • Revenue per Employee.
  • Time to Fill.
  • Voluntary and Involuntary Turnover Rates.
  • Offer Acceptance Rate.
  • Retention Rate.
  • Absence Rate.

5. Best Practices for HR Analytics

There are many different ways of implementing a strategy for an HR analytics program in an organization. It is especially important to find a balance of the metrics and tools used which are cost-effective which providing the Management with the required information regarding employees in the organization. While not processing the right amount of data can adversely affect the organization, providing too much for analytics can mess up the decision-making process. The following are some best practices that can be used when implementing and maintaining a HR analytics Program: (White & Bottorff, 2023)

  • Require data-based decision-making.
  • Find the right mix of tools.
  • Ask data-driven questions.
  • Transform data into action.
  • Get Leadership buy-in.
  • Get Feedback.

6. How can HR Analytics be used to Improve the Organization?

Managers and the HR department can use HR analytics in a number of different methods to improve the organization. These data points would provide much better methods to serve the organization’s employees, which will assist in maintaining the best possible overall performance. This will provide a competitive edge as the organization is able to retain the best talent from being taken by competitors. If the employees in the company are not satisfied, they it is possible that they will start seeking other opportunities. (White & Bottorff, 2023)

Conducting an HR analytics program is also a really good method to save cash. The employees are normally the biggest expense for many organizations, so it should come as no surprise that the organization loses a lot of cash that can be avoided if the Senior Management had better insights into the HR related data. Analysis of HR related data provides the required insights and can assist in streamlining processes or making better decisions that would save the organization’s time and cash. (White & Bottorff, 2023)

One thing that HR analytics will also provide will be improved efficiency. Getting more of the required insights into the way the organization is performing on the employee side will assist the business to streamline and keep improving the efficiency of business processes. (White & Bottorff, 2023)

7. HR Analytic Software

HR Analytic software becomes essential when keeping track of your employees. It will assist in the collation and maintenance of across the organization. Following are some of the main benefits of using a software for HR analytics: (Bhat, n.d.)

  • User Friendly.
  • Dashboards.
  • Updated new Features.

8. Benefits of HR Analytics

HR Analytics will assist your company in improving your strategy, tackling problems, and also preparing for a better future. The following are some benefits of HR analytics: (Bhat, n.d.)

  • Improve the Organization’s Talent Acquisitions process.
  • Reduction in the organization’s attrition.
  • Better the employee experience.
  • Improvement for productivity of the Workforce.
  • Improve processes in the HR lifecycle.
  • Gaining of Employee trust.

Figure 3: Benefits of HR Analytics (Bhat, n.d.)

9. HR Analytics trends from 2020

Following are some of the identified HR analytics trends from 2020: (Bhat, n.d.)

  • Artificial Intelligence and automation in talent acquisition.
  • Virtual onboarding and training.
  • Performance Management.
  • Predictive Reporting.

Bibliography

Bhat, A., n.d.. HR Analytics: Definition, Example, HR Metrics Dashboard and Predictive HR Analytics. [Online]
Available at: https://www.questionpro.com/blog/hr-analytics-and-trends/
[Accessed 17 April 2023].

Valamis, 2023. Human Resource (HR) Analytics. [Online]
Available at: https://www.valamis.com/hub/hr-analytics
[Accessed 17 April 2023].

White, J. & Bottorff, C., 2023. HR Analytics: Definition, Best Practices & Examples. [Online]
Available at: https://www.forbes.com/advisor/business/hr-analytics/
[Accessed 11 April 2023]. 

Comments

  1. Pham Hai LongApril 22, 2023 at 1:26 AM

    Making decisions is evolving in the realm of human resources. Modern human resources professionals use data and algorithms to drive business solutions, as opposed to their earlier reliance on gut and intuition. In a 2015 research by Deloitte, it was discovered that 35% of the organizations asked claimed they were actively building data analytic skills for HR. HR analytics are assisting firms of all sizes and across all sectors in making talent, management, and hiring choices in today's data-driven environment. Metrics in HR are widely used by businesses to affect employee hiring, retention, and pay. This is advantageous because it enables businesses to gather and evaluate data that may both boost revenues through more precise client targeting and save expenses through enhanced business procedures.

    ReplyDelete
  2. HRM PRINCIPLES by Rifak Liyakath AliApril 22, 2023 at 3:10 AM

    A crucial topic in today's context of HRM.

    HR analytics, also referred to as people analytics, workforce analytics, or talent analytics, involves gathering together, analyzing, and reporting HR data. It enables your organization to measure the impact of a range of HR metrics on overall business performance and make decisions based on data. In other words, HR analytics is a data-driven approach toward Human Resources Management (Vulpen, June 2021).

    ReplyDelete

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