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HR  Analytics: How to make maximum out of it

If you’re in the HR management business, and especially if you work with companies to help them grow their businesses, you probably already know that your company’s HR system needs to be on point.

It’s not enough to just have an excellent HR system—you need to make sure it’s set up the way you want it. There are many pieces that need to come together for a successful system, though, and the more information you have about your company’s processes and policies, the easier it is for you to determine how best to implement them.

This article will walk through some of the ways that you can use HR analytics to improve your company’s HR management system. It will give insight into how these tools can be used individually or as part of a larger program so that you can see most clearly where your resources are being used and what it will take to have even greater success in the future.

What is HR Analytics?

HR Analytics is the use of data to determine how employees feel, what their time is worth, and what their preferences are. HR Analytics can be used to create reports that can help you understand your employees, and it can also be used to help you understand your customers and potential customers.HR Analytics is not only about measuring employee satisfaction, but it is also about measuring the returns on investment that employees are making for their company. This means that HR Analytics can be used to measure “value for money”.          Human resources analytics is the process of collecting, analyzing, interpreting, and using human resource data in order to improve an organization’s workforce performance. It is a subset of business intelligence, often referred to as talent analytics, people analytics, or even workforce analytics.

This method of data analysis takes employee information that is routinely collected by human resources departments and correlates it to organizational objectives. It is a new wave of software designed specifically for the HR departments.

This kind of software is designed to optimize the work of HR professionals through advanced reporting, data visualization, and scenario management capabilities. It is difficult to troubleshoot HR problems without proper analytics data.HR systems should be integrated with finance, sales, marketing, and manufacturing systems to get a better picture of business performance. Companies have started using HR data to make decisions easier in the absence of these integrations. But analytics is not meant to replace these integrations but to complement them.

“Human resource programs no longer need to be based on ‘soft’ reasoning but should be as analytical and as data-driven as any other management discipline.”

             – Chris Argyris

How to Use HR Analytics

Now that we’ve gone over what HR Analytics is, and what it can do for your company, it’s time to walk through how you can use it in your HR system. We’ll start with a look at when and why you would use each of the different types of analytics that are available.

When to use HR Analytics

As we’ve already discussed, the earlier you start looking at the data, the better. You want to make sure that you’re gathering as much information as possible to make sure that you can use as the basis for your HR Analytics.

If you know the key performance indicators (KPIs) that are important to you, then you can start to analyze data and gauge the results that you’re looking for much earlier in the process. For example, if you know that your employees are spending an average of 3.5 hours each week dealing with HR issues, then you can begin to think about what you can do to address that issue.

Perhaps you can have a dedicated team that oversees all of these tasks so that your employees don’t have to spend so much time on mundane issues. Your analysis can determine if this is a big enough problem to warrant putting in the time and effort necessary to make a significant impact.

Need of HR Analytics

  • It is used to improve the output of an employee, in today’s era where automation has taken over, it can be used to plan and improve the workflows, They are generally classified as People Analytics systems or Process Analytics systems, it can help the company know what is really happening inside and how can they make more predictive analysis,Hr analytics helps in employee satisfaction, Salary optimization, understanding employee’s engagement at the workplace.
  • HR analytics is used by businesses to attract, retain and develop employees. It serves as a means of gathering data for human resource insights. The concept first starts with determining employee needs and then moves towards correlating them with business goals.  HR analytics helps in achieving strategic objectives through workforce planning, recruitment and retention. All these processes are driven by HR analytics tools that have analysis capabilities used to deliver high value.
  • The objective of HR analytics is to align the business objectives of an organization with the internal employees with an aim to improve performance. The more advanced method of doing this is by applying data and analytical skills to find out what is stopping employees from attaining their goals, identifying their most valuable strengths and weaknesses, setting up new goals based on the aforementioned information and assigning people that can effectively help achieve those well-thought-out goals and finally assessing whether or not all these efforts have been successful.
  • HR analytics can be used to prevent workplace misconduct by analyzing data collected from incident reports and identifying trends or common occurrences in misconduct. Such information could be used to develop training programs that help minimize the likelihood of future misconduct.
  • One way to use HR analytics is through key performance indicators, specific metrics that measure the success of an employee. This would benefit a company’s bottom line because you can identify employees who might be underperforming and offer them support.
  • HR analytics can be used to identify the reasons why employees want to leave a company and why they want to stay. Identifying these gaps can help organizations understand how to attract and retain high-performing employees, which is crucial to overall company performance. HR analytics can be used to collect data through employee surveys, compile useful reports, and more.

“HR will not be replaced by data analytics, but HR who do not use data and analytics will be replaced by those who do.”

          – Nadeem Khan

  • HR analytics provide insights into employee engagement, which allows companies to identify the kind of work, culture, and people that will make their employees more engaged.
  • To develop a strong, productive workforce, companies must invest in professional development. Providing your employees with opportunities to learn new skills will have a direct and positive impact on company performance.Collecting data on where employees might need upskilling through HR analytics allows you to identify if employees are making the most of training opportunities, and see if the training is relevant for them or not, saving your company time and money.
  • HR analytic tools will be able to use machine learning to identify patterns and trends that might otherwise have gone undetected. This information can then be used to create comprehensive reports on areas that are typically overlooked.

Benefits of using HR Analytics

HR Analytics can be a powerful tool when used correctly. When used properly, it can help you make the right decisions and help you forecast trends. For example, let’s say you know that your employees are spending an average of 2.5 hours each week dealing with issues related to scheduling. By using event-based analytics, you can see that your most popular events are also the ones that are being used the least.

This tells you that your employees are spending their time dealing with events that are infrequent and infrequent events are the ones that your employees are more likely to attend.


While there is no perfect solution to the problem of how to make the most of your HR system, the best companies find a balance between having an excellent HR system and making the most of their data. That said, there are a few things that you need to keep in mind when using analytics to make your HR system even better. First, data is not facts. Data is context. You won’t know what outcomes your data will generate unless you give it some context.

For example, you won’t know what KPIs will make the most impact unless you look at the data in terms of the overall business. You also won’t know what actions will make the biggest impact unless you look at data that looks at the long term. Second, data isn’t Analytics. Data is interpretation. Data is what you make of it. The only way that data can be used to make a decision is if you have a clear idea of what that decision is. For example, you can’t simply decide that every employee who spends 2 hours dealing with issues should be terminated.

That’s a very broad decision and you would need to do much more research to justify that decision. You also can’t simply decide that every instance where an employee does not return to work should be recorded as a leave without pay.

That’s a judgment call and you’d need to justify each decision that you make on an employee-by-employee basis. HR Analytics is a powerful tool, but it can also be overused.

Make sure that you’re gathering as much information as possible, making the best use of that information, and then interpreting the data as you see fit. Good luck in the business world, and happy collecting! Hr analytics is used to measure the performance of the HR department in measuring their goals and their outcome. Its use has now become compulsory to measure the performance of hr function among different industries.

All in all HR analytics has come a long way over the years. The use of software to organize and analyze the data is proving to be the need of the hour in order to find out what needs to be done and who should be doing it. One of the biggest positive aspects of this kind of software is that it is almost entirely cost-free for users, as opposed to other forms of HR software which are often expensive and difficult to navigate.

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