What is HR Analytics?
HR analytics is a zone in the field of analysis that alludes to applying analytic processes to the human resource department of a company in the expectation of enhancing worker execution and improving in the degree of profitability.
Organisations generally move to HR analytics and data-led solutions when there are problems that cannot be resolved with current management practices.
HR analytics involves collating, analysing and reporting data of HR. It lets organisations measure the effectiveness of various HR metrics on the overall performance of the business and take decisions based on data.
Table of Content
HR analytics is a data-driven approach in the field of Human Resources Management. It is a very novel tool and largely unexplored in scientific literature. The most famous scientific explanation of HR analytics is that it is the systematic identification and quantification of the drivers of people for business outcomes.
Human Resource Management in the last century has changed a lot as it is transformed from an operational discipline into a strategic one. Its popularity has been proof of it.
HR analytics does not simply manage the gathering of information on employee performance and efficiency; instead, they also provide deeper details of each process by accumulating data and then using it for making important decisions about improving these processes.
HR analytics establishes a relationship between business data and individual’s data, which further helps in building important connections between them. The main aspect of HR analytics is to show people the impact of the HR department on the whole organisation.
HR analytics also help in building a cause-and-effect relationship between the tasks of HR and business outcomes and then making strategies based on that information.
The core functionalities of HR can be improved by applying various processes in analytics which include acquisition, optimisation, paying and creating the employee’s workforce for the organisation.
HR analytics can also help in digging problems and challenges using analytical workflow and guide managers in answering questions. It also helps managers in gaining deeper details from information at hand, then makes important decisions and takes proper actions.
Field of HR Analytics
The field of HR analytics can be further divided into the following segments:
It is a talent management process that enables you to identify capabilities or core competencies that you require in your business. It helps in identifying the capabilities of your workforce which include their skill, level and expertise.
Competency acquisition analytics
It refers to the process of assessing how well or otherwise your business can attain the required competencies. Acquiring and managing talent is very critical for the growth of the business.
It helps in identifying how many operationally efficient people are in business. For example, it identifies whether people are spending time in profitable work or not.
Employee churn analytics
Employee churn analytics refers to the process of estimating the staff turnover rates for predicting the future and reducing employee churn.
Corporate culture analytics
It refers to the process in which assessment and understanding about the corporate culture or the different cultures that are followed across an organisation are done.
Recruitment channel analytics
It refers to the process of finding out the source of getting or recruiting the best employees and most efficient recruitment channels.
Employee performance analytics
Every organisation requires employees that are capable and perform well to survive and thrive. Employee performance analytics is used in assessing the performance of an individual employee. The resulting information can be used to determine which employee is performing efficiently and which employee may require some extra support or training for improving its performance.