HR Analytics – Taking HR above and beyond

The widespread Adoption of Analytics in HR is taking HR function beyond by simply adding the power of data and algorithms to the HR business processes

Data Guy

12/12/20224 min read

The wave of analytics has taken over almost every function and Industry in the business world for good.

The widespread Adoption of Analytics in HR is taking HR function beyond by simply adding the power of data and algorithms to the HR business processes. The same processes that were earlier driven by Gut, Intuitions, and Instincts are today leveraging tHR analytics to make hiring, recruitment, talent management, customer engagement, and employee compensation decisions that enable companies to increase revenues by targeting relevant customers and cutting costs through improved business processes powered by data.

Almost 50% of companies today would want to use workforce data to predict and improve business performance and more than 70% of Leaders in HR find People Analytics useful in taking HR Strategic decisions.

And these numbers reflect that more and more businesses along with their leaders are realizing the power of HR Data and the know-how HR Analytics can transform the business when combined with the data from other functions.

Below listed are the areas where HR Analytics is Taking HR above and beyond:

Helps in Fixing payroll leakage:

Today the most valuable asset for any business is its people and to retain and maintain the best of it, companies spend a very hefty cost and hence people’s cost becomes one of the substantial costs.

If not managed properly, there can be costs paid by mistake as overpayments/incorrect payments. However, with the help of HR Analytics, companies analyze their current workforce, anticipate the workforce needed in the future, and identify the gap between the workforce today and the needed tomorrow. All these findings can be derived using the existing people data and can be compared with the data available in the payroll systems against the original workforce plan to determine if there are any unexpected trends in the payroll cycle and allow you to fix any payroll leakage, wrong payment issues, and any other anomalies before making any payments.

Improves Employee Retention:

The most frustrating thing can be spending money, time, and resources on hiring and training the best candidates only to have them leave before you start seeing the return on that investment. It can be curbed down by clubbing the data from resignations and exit interviews to identify the factors that are causing the attrition and accordingly can plug your leaks by doing the predictive analysis on the most common reasons for staff leaving your workforce so you can make the pivots based on the data to improve the overall retention rate.

Identifying the need for training Programs:

If you want your company to grow constantly. In that case, you need to let your people evolve, grow, and get better with each passing day. However, that growth and evolvement need to be strategically thought through, so it adds the relevant skillset to the team that eventually adds to the growth of the company. Gaps in the training process not only increase the cost to the company but also turns out less effective and bring in unwanted challenges. Hence, Involving HR Analytics helps in understanding the impact of the training done in the past and in identifying the need for training and what training program needs to be implemented for the specific set of people based on past patterns.

Brings Data element to Hiring decisions:

Hiring processes are very critical as it involves bringing the right candidates into the system, by adding Predictive analytical aspects to the initial few steps of the hiring process, you can automate the job posting to different portals, resume shortlisting, and even pre-screening to an extent that allows your HR team to focus on the parts of the process that are most important like personal interviews and thorough assessments. Also, in examining the best source of recruitment to find the benefits of your past recruitment drives, HR Analytics plays a vital role and gets you visibility to make better decisions.

Optimize business performance using Benchmarking data:

Today, no business strategy is wrong, and no strategy is right, every business is trying a new way to position itself, trying innovative ways of doing business, and disrupting the market by evolving new strategies, redefining the old norms, breaking the stereotypes, and creating their own ways of doing business.

And, in such dynamic times, it’s not enough to look at your past performance to anticipate your growth. You also need to compare your current stand with the companies in a similar space as yours (market and industry) to understand your actual growth. To do that, you need to combine the Industry/Market Benchmarking data with your HR Data and then do the comparative analysis to gauge the actual business performance. It’s the implication of HR analytics where you combine the internal Data with the Data of the outside world and see your growth in the context of your industry. Such insights help in seeing the bigger picture and help in minimizing the gaps (if any) that eventually optimize the overall business performance.

Brings efficiency to Workforce Planning & Management:

HR Analytics brings data points to identify your today’s key performers and tomorrow’s potential highflyers by giving comprehensive information on their performance, skillsets, and training that allows you to figure out who can internally fill the key positions which may become vacant in the future and reduces the risk of ongoing vacancies. Not only that, but it also allows you to match your resources to the needs of your business. Applying predictive analytics to your HRMS Datasets, you can find where the current talent gaps, different trends, and relevant patterns around those gaps. And these insights can be used to define the long-term workforce management strategy.

Measuring and Improving Employee Performance:

HR analytics is not just to add visibility in the hiring and onboarding processes, and we got that hint already in the above-mentioned points. HR Analytics brings transparency to the key performance metrics like increased tardiness, missed assignments, achieved goals, and other important factors that collectively define the overall performance and productivity of the employee and helps employers identify the performance gaps, and provides insights to address them. HR Analytics also enables the employees to track their own performance and self-appraise based on the set KPIs, leading to enhanced employee satisfaction.


With the positive wave of Analytics in HR, HR function took a shift from being emotionally driven and ditched the gut to becoming Data-Driven Valued Business Partner. With HR Analytics in place, HR function goes above and beyond and becomes a competitive advantage for the business as it allows them to quantify, analyze, optimize, and monetize their HR Data that was once considered intangible and emotional. It brings visibility to the key areas of the HR function such as workforce planning, employee retention, performance management, etc. which greatly adds value to the overall business.

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