What is HR analytics?

HR analytics is a data-driven method of improving decisions that impact HR functions. HR analytics depends on the quality of the data collected from HR metrics, such as:  

Why should HR leaders care about HR analytics?

Utilizing data relevant to HR strategies enables HR leaders to identify successful practices and pinpoint weak areas in need of improvement. HR analytics enables strategic decision-making that can drive business solutions through improving:

  • Productivity
  • Engagement
  • Retention

What can HR leaders do to implement HR analytics?

Incorporating these practices can pave a smooth path for effective integration of HR analytics:

  • Create a plan. Determine the business issues to focus on, ranking the most pressing ones first. Include a detailed breakdown of the HR functions and how to adjust them to improve the business problems. Identify metrics to use that will promote results and elevate HR functions to reach long-term goals.
  • Involve data scientists. Welcoming data scientists into the process enhances HR analytics immensely. Data scientists can monitor the quality and accuracy of the data and help HR professionals implement the data to their benefit; using the information to prove a point or support a game plan is a crucial aspect of HR analytics. Furthermore, data scientists can coach and instruct employees through the nuances of the HR analytics process.     
  • Prepare HR personnel. Request that HR personnel evaluates the current analytics level of the company. Once they cultivate an awareness of their standing and determine what they need to do to reach the next level, they can take steps to progress. 
  • Educate HR professionals. Analytics brings an abundance of AI that challenges the status quo at work, so HR professionals must equip themselves with the knowledge to ride the oncoming tech waves. HR leaders can help HR generalists and business partners adapt to the digital transformation by facilitating their analytics education. In this way, employees can gradually acclimate to the rise of analytics in the work culture. 
  • Ensure legal compliance. Explain the legal guidelines to managers, executives, and HR personnel to avoid breaching employees’ rights and privacy. It’s crucial to behave with transparency concerning the type and amount of data that the company collects. HR leaders should consult a specialist in employment law to assist them in following regulations and implementing bylaws.

How does HR analytics improve company culture?

HR analytics equips HR leaders with the necessary data to improve HR functions and the employee experience. With the continuous influx of tech innovations challenging the workplace, managing employees intelligently and supporting them through the demanding employee lifecycle is essential. Enhancing HR strategies through HR analytics can promote job satisfaction and lead to a healthy company culture comprised of engaged individuals.