What are HR analytics and why it is important?

by Rashid Ejazz SEO

With the increasing quantities of data, it has become important decision-makers to use the right HR tools and kits. Data can help decision makers in taking an informed and effective decisions without any biases. In the world of Human Resources, the use of HR analytics for HR professionals is used to better understand the current trends, forecast, and choose the best strategy for business in the future. HR analytics is also call people analytics.

HR analytics creates and assesses workforce and human resource, and helps in determining the contribution & efforts of each human resource/employee towards achieving company goals. HR Analytics help in reducing costs, modifying risks, as well as accomplishing strategic plans for business gains.

It is an effective method of analyzing employee data and then used to understand how the company can ensure organizational success by maximizing the contribution of each employee. Business goals are used as an assessment point by Human Resources, that results in understanding how HR input contributes to achieving organization’s goals. HR Analytics or People Analytics is a useful tool for businesses and organizations to better understand the strengths of their employees and taking the right steps towards maximizing the output of employees. This results in more revenue and financial success.

Furthermore, HR data can be used to create future roadmap to push the organizational agenda and bring in more success. This is achieved by finding exactly where to cut costs, where to allocate more budget and tweak the HR strategy by converting weaknesses into strengths.

Here is how HR analytics work?

HR analytics works by acquisition of information, followed by its analysis. This helps the leaders and decision makers of organizations in developing a deep insight of future business functions. Therefore, HR analytics is actually a multi-step process to understand human resource of any company more thoroughly.

HR metrics that help in HR Analytics are:

• Turnover rate

• Absenteeism

• Hiring costs

• Operational costs & salaries

• Training & Development cost