HR analytics is the method of accumulating and analyzing Human Resource (HR) data to enhance an organization’s workforce productivity. This is also called people analytics, workforce analytics, or talent analytics.

In this process, data is timely collected by the Human Resource of the company and compared it with the organizational objectives of Human Resources. This is done so that one can measure the evidence of how HR actions are adding to the organization’s aims and strategies.

Acceptability of HR Analytics

Human Resource Analyst presents data-backed insight into what is working properly and what is not so, that companies can make the decisions and can work to make improvements for the future.

You might raise a question. Most organizations already have lots of data and are even collecting data on a timely basis. So why is it mandatory to have HR Analytics? Can’t the HR just use the existing data to do the analysis?

The Answer is Sad, Raw data which is like a large spreadsheet of unorganized data full of numbers and words. The companies already have it, on their own, cannot give any useful insight, unless the very same date is processed and presented in an organised manner.

Few places Excel sheet can’t excel but HR analytics will:

  • In finding out the pattern in employer attrition?
  • To figure out how much time will it take to onboarding an employee?
  • How much investment is needed for an induction program?
  • To figure out who all are about to leave the company?
  • Does employee internal or external training programs help the employees to improve employee productivity?

What Metrics Does Human Resource Analytics Measure?

Few things that are measured by HR analytics are:

  1. Cost Per Hire.
  2. Attrition
  3. Activeness of Employees
  4. Job Satisfaction and/or Engagement.
  5. Performance of the Employees

7 HR Analytics Every Manager Should Know About

  1. Capability analytics
  2. Competency acquisition analytics
  3. Capacity Analysis
  4. Corporate culture Analysis
  5. Employee attrition
  6. Employee performance Analysis
  7. Vendor Performance/turnaround analytics
  1. Capability Analytics:

It is important to measure the skill and capabilities of an employee so that the company can use employee capabilities, to improve their productivity, customer satisfaction and substantial growth of business. They can plan the company skill matrix and requirements for future references or project execution purposes. 

With the Help of Capability Analytics, Management can make right decisions.

2. Competency Acquisition Analytics:

Companies must know the core competencies of their business. This will help to drive the business towards growth and success. Hiring a right resource is as important a satisfied customer. Using “Competency Acquisition Analytics” you will not only be able to hire the right candidate from the market, your customer satisfaction level will also increase manifold.

3. Capacity Analysis:

The Company must know its “Capacity”. Under usage of Resources will lead to loss of revenue and may be customers. This would cause them losses and can have a negative impact on their business.

Using “Capacity Analytics” one can know how much resources are being underutilized and management can decide when to increase/decrease the capacity.

4. Corporate Culture Analysis:

People from different geographical locations and different cultures work together to make a business successful. Using “Corporate Culture Analytics” HR can predict the corporate culture, identify trends and work on improving the work culture. It is important to have an  ethical work culture to grow and be successful in the market.

5. Employee Churn Analytics:

“Employee Churn Analytics” is a very important tool for any organization. It is important to know employee churn/attrition in advance. This will help to mitigate the plan and alert resourcing team to hire the right candidate so that there is no loss of business. 

6. Employee Performance Analysis:

In any Company, it is very important to track employee performance. At the end of the day, it’s the employee who makes the business grow and satisfies customer needs. If the employees are not efficient/effective then the business will go in loss.

Using “Employee Performance Analytics” one can keep track of every employee’s performance and plan training programs for skill up-gradation.

The Future of Human Resource Analysis:

Most of the fortune 500 companies are already using hr analysis. It doesn’t matter what kind of companies or industries. If you have a HR Team, you can leverage many things from HR Analysis.

It is a known fact that Human Resource Analytics will change the shape of Hiring in the future. 

Below are few facts and Survey which says that:

  • As per the LinkedIn Survey Reports, currently, 92% HR in India consider People Analytics as the future of HR and recruitment, This report has been released on the 10th annual edition of the LinkedIn Global Talent Trends 2020.
  • This report says that 95% of HR will use HR Analytics to analyze the organization and to know the employee experience.
  • Throughout the world, 96% of HR managers say that it is really important to focus more on the employee experience.
  • 77% HR says that using Human Resource Analytics, to increase employee retention they’re focusing on employee experience.
  • There was a tremendous increase of 2.4X times of this process since 2014.
  • Most of the HR have searched job titles on LinkedIn with the keyword “employee experience”.

Why Should You Invest in an HR Analytics Solution?

If you are still stuck with this question, after reading this then you are not ready to invest in HR Analytics, you should understand that this can change the complete course and life cycle of your company. 

HR Analytics can help you to boost your business, reduce unwanted cost, and improve corporate culture. This will be a profitable proposition for the entire organization. 

What is the role of HR Analytics?

To attract, manage, and retain employees, a tool is used by HR to analyze and to make data based decisions. This process is called Human Resource Analysis. This will help to improve the ROI and will also help to maximize employee productivity. 

  • It will help an Organization to increase ROI.
  • It will utilize and maximize employee productivity.
  • It will help to analyze the employee work performance.


HR Analytics is important for every Industry. An Organization can use the analysis to make key decisions. The outcome of Analysis will help you to decide your Hiring process. You can use predictive Analysis to scale up/down resources. It can also help you increase employees efficiency and their productivity. If you are looking for any other details then you can feel free to contact us and our experts will be happy to guide you. 



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