How HR Analytics is Transforming the World of HR Decisions?

"HR is a work of the heart". 

HR is about the emotions and feelings of employees; how can numbers and data fit in this department? This blog on HR Analytics answers this burning question.

HR analytics gives a data-based approach to gaining deeper insights into how HR can better align people processes with desired business outcomes. Analytics can quantify, build behavioral models and predict the choices of each employee. 

Why Is HR Analytics Required?

HR analytics has come a long way since its introduction in the 1970s. Today, it has become crucial to every human resources department of every organization. HR professionals require analytics to understand their workforce better, deploy sources efficiently and plan for the future using predictions.

Analytics help them do their job faster and more effectively by:

• Writing better job postings to attract better candidates.
• Taking care of backlogs during the hiring process and providing immediate solutions
• Increasing employee engagement, thus improving retention and reducing turnover rates.
• Managing performance reviews of the company, understanding employee goals and succession planning
• Tracking and improving the diversity hire rate of a company

HR professionals use data-driven technology to attract, manage and retain employees, improving ROI (Return on Investment). 

“The above graph shows that the estimated value of the HR Analytics market will be USD 3.6 million by 2024 as compared to USD 1.9 million in 2019.”

The Impact Of HR Analytics In An Organization

Today, more and more organizations are discovering the benefits of using analytics in the Human Resources department. Google, Wal-Mart, Microsoft have reinvented their HR department by introducing analytics to gain new workforce and management insights.

Here are some ways in which HR analytics are impacting organizations today:

• Analytics help organizations make better management and hiring decisions. Using machine learning algorithms on an applicant's data allows companies to choose the best matching talent for the vacant position.

• It enables them to understand the full potential of their employees, their strengths and weaknesses, thus improving organizational performance. 

• Analytics also increases interaction between the stakeholders and the employees, creating a mutually beneficial and healthy working environment.

• It can identify and funnel resources into the highest business impact grounds for maximum profit.

• Predictive analysis in HR enables companies to forecast the impact of people policies on the employees, make better decisions regarding human capital and predict the risk of turnover by position, function and location. 

• Using analytics, organizations can identify the patterns of high-performing employees and modify their hiring and retention strategies accordingly. 

• Similarly, they can identify under-performing departments and the reasons behind their losses.

• HR Analytics measures metrics that contribute to business value like revenue generated per employee, training efficiency and expenses per employee, absenteeism, and time to hire and fill in an organization.

Conclusion

It is no secret that analytics in HR have streamlined business processes globally by helping companies recruit people with the right skills, managing talent more efficiently and solving any problem that may affect staff morale adversely.

In this blog, we have introduced ourselves to the world of HR analytics and seen its endless benefits. In our next blog, " The Use of HR Analytics", we will be discussing the benefits and areas of use of HR Analytics.