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Human Resources Analytics

What is Human Resources Analytics?

HR analytics is a data-driven process to make decisions about all HR functions and employee performance. It's collecting data on different metrics to make efficient future decisions. However, it depends on the collected data's quality to deliver better analytical insights.

Example of human resource analytics:

  • An organization wanted insights on employee retention and engagement ratios.
  • They firstly collected data related to recruitment.
  • Conducted employee satisfaction survey.
  • The costs involved in the process were measured.
  • All the information related to employee absenteeism and performance was collected.
  • Managers were also surveyed, and employees were asked to review them.
  • Finally, after collecting all the information, the HR analytics were presented to the management for further decision.


Frequently Asked Questions

Why is HR analytics crucial for organizations?

HR analytics helps human resource managers take steps for betterment in various aspects based on the data collected mainly by the HR software and not just based on assumptions. The analytics provides insights into the return on investments made on different HR factors. As a result, it strengthens an organization's decision-making, resulting in better outcomes.

What are the common measures of HR analytics?

Some of the common factors on which the information is collected are:

  • Time taken
  • Costs involved
  • Employee lifecycle
  • Performance analysis
  • Company culture
  • Leadership


Do all organizations need HR analytics?

Organizations willing to make overall development and improve company culture need HR analytics. Without accurate information, the leaders are not able to take corrective steps for the betterment of different areas and thus, HR analytics are a requirement.

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