Today, data is the key force driving businesses, companies and startups to achieve success. Historically humans have always been driven by data, numbers have been favoured in businesses throughout time. With passage of time Human Resources (HR) has made strides from just being an entity within an organisation ensuring code compliance internally towards being more proactive and becoming a part of business decisions.
As companies continue to adapt to new technologies, the HR department has also evolved to include Data Analytics into their arsenal owing to the mountains of data collected by them. Data helps HR teams not just in recruiting and training of new employees but also in maintaining the standards for talent already hired and conditions impacting their pay and job satisfaction.
What is HR Analytics?
Human Resource(HR) Analytics can be referred to as the process wherein HR data is processed using techniques of data mining and Business Analytics (BA). In this particular context, Data Mining is considered as the practice of studying previously existing databases with an intent of creating new information.
In other words, we apply analytics and statistics to HR data in order to identify patterns and coming up with better processes, solutions or simply to obtain better results.
HR Analytics provides insight to the HR team in matters that have huge impacts on business operation and department performance by recognising patterns in HR data. HR data is the repository of all employee information detailing out their work life. Most companies have a vast amount of such data at their disposal. This is helpful in analysis to arrive at decisions concerning the business operation from both an internal and overall perspective.
Analysing HR data that comprises of-
- employee demographics
- training records
- work history
- job completion statistics
- error-free deliverance rate
- attitude towards job and managers etc., are useful to come up with bright insights using HR Analytics.
HR analytics serves two main purposes
- Providing Insights
- Identifying Key Data
Providing insights informs organisations on their own operations and help with effective management of the talent pool. These insights ensure the maintenance of a timeline to achieve business goals more efficiently.
With HR Analytics, identifying key data means the organisation will capture more relevant data which will aid in policy making. It also helps in predicting different ways to achieve optimal return on investment (ROI) on its human capital.
Metrics in HR Analytics
Since this is a guide for dummies to understand HR Analytics, I thought an understanding of metrics won’t hurt. Generally, a metric is a system or standard of measurement. For example, a performance metric measures the behaviour activity and performance of an organisation. It assesses how well workers are performing their assigned tasks and how companies are achieving their objectives.
Here we talk about a few metrics that bring about significant changes in the workplace. Things like resignation rate, performance appraisal involvement rate, time taken for recruitment, etc., have a considerable effect on the recruitment process.
However, other metrics like employee retention, attrition management, sales performance, safety and health of employees also play an important role in HR Analytics.
HR Analytics can help you in many ways. First, by providing different perspectives and metrics for assessing your organisation’s needs and plan accordingly. Further, HR analytics provides insights that are rich in data and research. Therefore, you can integrate them with your daily work.