The Importance of Human Resource Analytics in an Organization


The Human Resource analytics involves the collection, organization, and analysis of data linked to human resource operations like recruiting, talent management, employee engagement, performance, and retention. Using a variety of human resource tools and technologies, human resource departments generate massive amounts of data effectively. However, the goal of human resource analytics is to identify human resource data and transform it into useful information since employee management and corporate goals can be better achieved with the use of human resources analytics. Businesses must collect data and then utilize it to make decisions and improve processes in order to benefit from human resource analytics. Data and insights about the workforce may be accessed and analyzed using human resource analytics, which plays a significant role in improving business choices. The use of human resource analytics may assist determine which departments are losing the most employees and additionally, it may assist human resource department in identifying the activities that have the most influence on employee engagement and, as a result, it allows companies to allocate resources effectively.  

Process of building HR Analytics

The process of HR analytics includes, 

Step 1: Identify the needs of the various stakeholders.
Step 2: Determine the scope of the research and analytics effort.
Step 3:  Identify the sources of the data.
Step 4: Gathering data 
Step 5: Convert data.
Step 6: Share the findings of the intelligence operation.
Step 7: Allow for strategic thinking and decision-making 

Human resource analytics aims to answer "why" questions and forecast what will happen next in an organization by analyzing obtained data. There are human resource analysts that gather information about employment, employee troubles or costs, and they provide recommendations for future measures or offer suggestions that might have an influence on a firm or organization. When it comes to hiring, human resource analysts are in charge of finding the right people to fill vacancies and making sure they are properly trained to do their job. In order to effectively organize and keep the data they gather and manage inside their businesses since human resource analysts frequently employ software like the Human Resource Information System (HRIS). As a result of their ability to use data and analytics to increase employee productivity, human resources (HR) analysts are kind of significant resource. A growing number of businesses are looking for human resource professionals who have the right skills to assume leadership roles within organizations, make better and more efficient decisions for the benefit of the company, and report data in order to predict actions and suggest solutions to problems. 

Figure 01: Benefits of Human Resource Analytics 

Benefits of Human Resource Analytic

  • Improves the recruitment process - Hiring process may be gained by tracking data on important recruiting parameters including applicant experience, cost per hire, completion of applications, quality of source, and quality of hire
  • Increases staff retention- Analytics in HR can assist to identifying key performance indicators which lead to employee retention in an organization. 
  • Prevents workplace misconduct - Analytics in human resources may eliminates unprofessional behavior in the workplace
  • Improves employee experience - The quality of an employee's first impression can have a significant impact on their decision to stay or leave a company, and a smooth hiring and onboarding process can help to boost future hiring
  • Reduces attrition rate - Using HR analytics, it is possible to swiftly discover the reasons and patterns for employee turnover. 

References

Toolbox.com. (2021). [online] Available at: https://www.toolbox.com/hr/hr-analytics/articles/what-is-hr-analytics/.

lesley.edu. (n.d.). How HR Analytics Are Changing Business | Lesley University. [online] Available at: https://lesley.edu/article/how-hr-analytics-are-changing-business#:~:text=HR%20analytics%20aim%20to%20provide.

Gomes, O. (2019). 8 Key Benefits of HR Analytics. [online] blog.talview.com. Available at: https://blog.talview.com/8-key-benefits-of-hr-analytics.


Comments

  1. AparnaMBA2022May 4, 2022 at 8:36 AM

    good article about HR Analytics.without HR Analytics organization can't improve there performance.with HR Analytics organization can set a person right place-right time.you explained the main points well.good job!well done!

    ReplyDelete
  2. Jude Gnanapragasam May 8, 2022 at 11:19 AM

    You have elaborated well and explained the importance of human resource analytics and the benefits as well. Great topic. Good luck.

    ReplyDelete

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