3 Important Benefits Of Using HR Analytics In People Management

In our previous blog," 4 HR Analytics Metrics That The Top Management Wants You To Measure", we took a look at some of the areas where companies use HR Analytics, including some HR Metrics.

HR Analytics is all about people, hence its preferred use by HR professionals in people management is not a surprise. For decades, the HR department has used analytics to keep the hiring process smooth, manage their employees and help organizations make better business decisions, keeping the welfare of their employees in mind.

In this blog, we will explore HR analytics applications in people management and predictive analysis.

Applications Of Analytics In People Management:

The most valuable assets of your organization are undoubtedly its employees. Deloitte reported in 2017 that 71% of companies consider people analytics a high priority for their organization and 31% rated it as “very important.”. 

Here are some applications of analytics in people management that makes companies high-performing:

• Promotion And Salary Decisions: A data-driven approach helps organizations track the rate at which their employees are getting promotions and raises and the reasons behind it. Using analytics, employers can make less-biased decisions, consider factors like quality performance or time and ensure that performance-based data occupies a large part of the equation.

• Attrition And Retention: Analytics can predict which employees might be more prone to leave and identify the factors driving their decision. Companies can take measures beforehand to hold a high-performing employee by providing incentives like signing bonuses. An increase in involuntary attrition may indicate the hiring and training process needs a review. An increase in voluntary attrition may require digging deeper into specific departments or managers.

“The image above shows HR Analytics predicting attrition by using age, the average   monthly income and distance from the home of employees as different bases for evaluation and analysis.”

• Tracking Training And Learning Outcomes: A better training program can benefit companies with a more productive and engaging workforce. They can use predictive analysis to customize training plans for each employee and track their performances. Analytics can identify the strengths and weaknesses of each employee and analyze training and learning outcomes.

Conclusion

HR Analytics has revolutionized and empowered the Human Resources department and made taking business decisions easy. It is a crucial part of any organization and enables better data-driven decision making. 

It is still awakening to its full potential, facing challenges and making it available for every small and big company globally. The future of HR Analytics seems promising and, today companies are realizing its endless benefits.