Managing employees is a shared responsibility between the business and HR. Analytics adds to the entire business process by improving decision making processes. Today, companies use HR Analytics in multiple areas from recruitment to predicting the outcomes of new policies and decisions. In this blog, we will be looking at some areas where companies use HR Analytics and some of its metrics.
In our previous blog, we got a look into the world of HR Analytics and saw how companies use it for their benefit.
Let's see some examples where HR Analytics proves its worth:
Improving Recruitment Decisions
Many companies find the recruitment process laborious and challenging. HR Analytics can speed up the process by analyzing the data of applicants and helping choose the best-suited one for a vacant post. It can narrow down the list of institutions so that employers can get in touch with the top candidates.
Identifying Employee Retention Rate
High employee turnover can be a cause of worry for organizations. HR Analytics can assist by analyzing employee behavioral models and conducting satisfaction surveys to find the potential reasons behind employees quitting or staying.
HR Analytics uses algorithms to predict if an employee might resign from their post. Companies can take action beforehand to prevent this by providing incentives like signing bonuses and learning opportunities.
It is essential for succession planning, where it keeps track of people retiring from key posts in an organization and chooses a fitting successor by shifting through many potential resumes, in a short time.
HR metrics enable HR to track performances and predict the outcomes of various decisions.
Here are some examples of HR Analytics Metrics:
“The above graph shows the use of HR Analytics to determine the attrition number department-wise of an organization and determine its relationship with department size.”
HR Analytics has empowered business decisions globally, made recruitment processes faster and increased the overall performance of companies.
In our next blog," How HR Analytics Is Helping HR Professionals In People Management?", we will explore HR Analytics application in people management.