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HR Analytics ‒ Data-Driven People Influencer

In this ever-changing tech-heavy business environment, people still remain the key differentiator in driving business value. HR analytics has entered as a significant influencer in running businesses, to effectively manage this key resource.

HR Analytics, sometimes used interchangeably with People Analytics or Workforce Analytics, are statistical tools used to measure and organize data related to employees, to give a better understanding of their performance and productivity of an employee. Insights on every employee at individual and organizational level demonstrate that data can help surface the apparently invisible, but stronger undercurrents of human behavior.

People Analytics helps companies to monitor record and analyze data of specific candidates with specific skill sets. This further helps in reducing cost, optimizing recruitment and improving talent quality. For any organization, their workforce is their most precious asset. Therefore, it is extremely important to organize, analyze, assess, and predict HR requirements.

HR analytics has been increasingly proving to be a potent tool to better understand employees and their engagement levels. It can holistically affect the various HR processes starting from recruitment and going all the way up to exit analysis. It can very effectively help in reducing hiring bias, improve employee relationships, find drivers of performance, and help manage attrition.

This data-driven approach to handling HR-related tasks whether small or large, addresses issues at several levels. For instance, in a real-life scenario, a leading global consulting firm was struggling with the sharing of best practices within their divisions. A quick analysis of the email recipients list, without even sifting through email contents, showed clearly visible patterns. It was found that retail teams in the US and Europe interacted little with each other as opposed to the rest of the world. Based on the analytics, quick decisions were made and one of the actions was to set up cross-regional teams to promote exchanges.

HR practices powered by HR Analytics have tremendous positive impacts throughout the HR cycle. Analytics sift through vast chunks of data on a candidate’s resume and highlight relevant qualities or skills that can contribute to the company’s culture and mission leading to better talent recruitment. These analytics also provide valuable insights into how the employees learn from training materials and suggest appropriate changes thereby improving the skill-sets and also enhancing the top talent in the organization

Not just hiring and learning, HR Analytics helps organizations in knowing when the employee shows signs of discontent or exit, and place projections to mitigate that effect – particularly in his/her first year when the organization invests heavily in training and development. Workforce Analytics helps the organizations in considering factors like the likelihood of the employee remaining with the company for a reasonable period of time, his skill, domain, education, certifications, experience and other factors.

Traditional surveys and appraisal systems have less and less impact in today’s world, whereas progressive analytics provide organizations with invaluable insights by identifying engagement activities that have the biggest impact on the performance of the employee.

To leverage these powerful benefits of HR analytics, an organization should get creative in identifying newer sources of data for intelligence, leverage the full analytics tools starting with descriptive insights and place business context and approach at the center, to drive the initiatives.

  • Posted Date: 24-MAR-2020