A lot of HR professionals who want to be more data-driven in their work ask the question “what is HR analytics?”. HR analytics, is referred to as people analytics, workforce analytics, or talent analytics, involves gathering together, analyzing, and reporting HR data. It enables your organization to measure the impact of a range of HR metrics on overall human and business performance to make decisions based on data. In other words, HR analytics is a data-driven approach toward Human Resources Management.
In the past century, Human Resource Management has changed dramatically. It has shifted from an operational discipline towards a more strategic one. The popularity of the term Strategic Human Resource Management (SHRM) exemplifies this. The data-driven approach that characterizes HR analytics is in line with this development.
Analyzing HR data can set businesses ahead of the competition in their industry. It helps to identify areas in need of improvement for the better running of operations. Using HR data analytics can reveal the efficiency of business operations. This has resulted in the growth of HR data analysis among modern businesses.
Reasons why your company should analyze its HR data:
HR data analysis holds numerous benefits for contemporary organizations. Top of the lists are benefits that contribute directly to the improvement of organizational efficiency and effectiveness.
Help Strategic Decision-Making : Being able to use data in decision-making has been growing in importance throughout the global pandemic. Moving towards a post-pandemic world, there are many changes happening in employment – whether it is the growing popularity of hybrid work or the increased use of automation. In this age of disruption and uncertainty, it is vital to make the correct decisions in order to navigate our new realities.
Employee engagement depends on the heart of strategic decision-making. Adequent knowledge of employee effectiveness in the organization informs major decisions in management. Leaders and managers can make informed decisions and pre-determine the possible impacts of their business decisions. HR data analysis provides information on the performance of individual employees and their continued contribution to the business n any organisation. Using HR data metrics, one can then determine the appropriateness of a decision based on the current and projected future position of your organization’s workforce. Peoples Analytics ultimately empowers Human Resources to make informed decisions and enables them to advise their organisations accordingly, based on the information gleaned from the data insights. By fully optimising the data, data driven decisions can prove to be impactful, particularly where there are vast amounts of data available to analyse and disseminate trends
Get ahead of the Compitition: Analyzing Human Resource data can set businesses ahead of the competition in their industry. It helps to identify areas in need of improvement both in Human Resource and for the better running of operations. Using HR data analytics can reveal the efficiency of business operations. This has resulted in the growth of Human Resource data analysis among modern businesses.
To Determining the need for training and development : HR analytics help to examin the training need of any organisation, Analyzing on their assigned roles and responsibilities. Determining the need for training and development for specific employees in the organization saves businesses high costs associated with firing, recruiting and hiring employees.