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Unlocking The Potential of HR Analytics

In today’s fast-changing world, it is vital for organizations to stay updated with the latest technologies. Big data, machine learning and artificial intelligence have become fundamental tools for decision-making across diverse business areas. Human resources (HR) is no exception.

Within HR, the use of analytics is increasingly prevalent. HR analytics, also known as people analytics or talent analytics, involves gathering, analyzing and reporting HR data. This data is used to identify key insights and trends pertaining to people-related movements, facilitating data-driven decision-making.  Here are some ways in which organizations can unlock the power of HR analytics.

Candidate selection

HR analytics has the potential to sieve through thousands of job applications to identify and shortlist best-fit candidates for the organization.  By harnessing the vast amount of recruiting data collected, HR can make well-informed decisions when it comes to selecting the best candidate to fill vacancies. For example, tracking and analyzing key recruitment metrics such as job offer acceptance rate, time to fill, recruiting costs and candidate experience can offer valuable insights on the entire recruitment lifecycle. Recruitment analytics tools enable HR to effectively track and make sense of these metrics, allowing them to zero in on areas for improvement as well as source and identify appropriate applicants.

Employee metrics

HR analytics solutions are also capable of monitoring and dissecting existing employee data, offering key insights into performance, skills, and training needs. This allows HR and line managers to assess employees’ performance, and chart out individualized development and training plans for employees. There are also tools that enable HR and managers to assess employees’ skill sets against job requirements, ensuring job fits while maximizing employees’ abilities.

Employee satisfaction analysis

Employee engagement plays a critical role in attracting and retaining employees, which is why it is essential for HR to track satisfaction levels and identify potential gaps or areas for improvement. HR analytics has the power to analyze employees’ feelings on a variety of platforms, from the words they use on social media channels or feedback on a particular activity. These analytics offer fairly accurate insights on employees’ view towards their jobs, their working environment and their relationship with the organization. With these tools and insights on hand, HR and business leaders are able to come up with tailored strategies to ensure an environment where employees feel valued.

Turnover rates

High turnover rates is one of the major headaches for HR. Sourcing and hiring for vacancies along with training new hires requires a lot of time and resource investment. This is where big data can be extremely useful in tracking and analyzing employee movement trends to identify underlying causes. For instance, data on age, gender, work experience, departments and other factors can be analyzed to predict high flight-risk employees.

Productivity analysis

HR data analytics can help HR leaders to understand productivity levels and spearhead strategies to improve it. Analyzing the time spent on each task, the end results, and the number of resources used – all these can be used to identify areas where workflows can be optimized, thereby increasing productivity levels.

The potential of HR analytics is immense. People data provide valuable insights to business leaders and key decision-makers to make impactful people strategies. At the same time, it also allows leaders to understand its workforce better, while providing opportunities for improving processes, reducing costs, and creating an environment that fosters a high-performing and engaged workforce.


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