What is HR Analytics? An Introduction.

You might have heard the term “HR Analytics or People Analytics” more than often. But do you know what it means?

People use HR Analytics and People Analytics interchangeably but they are two different concepts. In this blog, we will be discussing HR Analytics. Its meaning, importance, scope and implications. We will cover People analytics in a future post as well.

– Data-driven HR

HR analytics involves compiling, examining, and summarising HR data. It is also known as people analytics, workforce analytics, or talent analytics. It helps your company to analyse data to determine the effect of a variety of HR KPIs on overall business performance. In other words, HR analytics is a human resources management strategy based on data.

Analytics in HR is a relatively new tool. This indicates that it has not been extensively studied in literature. Heuvel & Bondarouk’s definition of scientific HR analytics is the most well-known. They define HR analytics as the systematic identification and quantification of the people drivers of business outcomes.

– Scope of Data-driven HR

Human Resource Management has undergone significant transformation in the last century. From being an operational discipline, it is now more of a strategic one. The term Strategic Human Resource Management (SHRM) is a good example of this. HR analytics’ data-driven method is consistent with this development.

You can stop relying on intuition by employing people analytics. HR workers may make data-driven decisions thanks to analytics. Analytics also assists in evaluating the efficacy of various initiatives and HR policies.

– How HR Analytics boost management efficiency

The value of being able to analyse information in decision-making has increased exponentially. There are numerous changes taking place in the workplace as we move closer to a post-pandemic society. Including the rising prevalence of hybrid jobs and the increased usage of automation. Making the right decisions is crucial in this time of disruption and uncertainty so that we can navigate our new reality.

The Human Resource (HR) department may have the poorest reputation of all the departments in an organisation.

Analytics based on HR data alters all this. By being more data-driven and knowledgeable about HR and analytics, many of the problems we just discussed can be solved.

– HR Analytics in implication

There are several incidents where HR Analytics has been a life saver. Be it reducing accidents at the workplace or boosting recruitment efficiency. HR Analytics combines HR Data from several systems. Let’s say you want to assess how employee engagement affects business results. For this, you must combine your annual engagement assessment with your performance record. The effect of involvement on the financial success of various stores and departments can be calculated in this way.

Based on the knowledge obtained through HR analytics, important HR domains will alter. There will be changes to jobs including hiring, performance management, and learning & development.

 

In conclusion, An organisation can benefit greatly from HR data analytics. These are only a few instances. Analytics do in fact let businesses to gauge how people’s policies affect their bottom line. HR can forecast the future of the workforce by using sophisticated statistical analysis. Managers are able to assess the financial effects of HR procedures thanks to HR Analytics.

HR Analytics goes hand in hand with automation. And do you know how you can automate your HR? Spine HR Suite! You can learn more about Spine HR Suite here.