What is the purpose of HR analytics in the business world?
Updated: Feb 9
Employers can identify the future of their workforce by applying complex statistical analyses.
The manager can then measure the impact of Human Resource practices on the company's finances.
Analytics brings benefits in many HR areas of business, for example:
Recruitment and Talent acquisition:
Because it can measure candidates’ experience and collect feedback data from job applicants. In the recruitment process, HR analytics can identify the most qualified candidates, thus reducing costs and time to hire employees.
Performance Measurement :
It focuses on business issues, e.g. sales productivity, workforce effectiveness, and optimizes the cost of the workforce to drive profit growth,
Determines the right number of employees for current and future needs,
Using historical data to collect data such as employee satisfaction to understand the reasons behind resignations, machine-learning techniques are often able to determine factors that lead to employee resignations that may be difficult for managers to observe,
These examples are just the tip of the iceberg. It is not hard to see how HR data analysis can hold immense value for an organization.
Companies can, in fact, evaluate the effect of people policies on the bottom line with analytics.
The goal of HR analytics is to measure the effectiveness of HR on bottom-line performance.
Usually this is determined by looking at its Return on Investment (ROI). HR can leverage its strategic influence in the most powerful way through this process.
It will also be easier for HR to become a strategic partner if it is aware of the impact of HR policies.
Having strategic alignment helps HR align its efforts with business objectives and to quantify how it contributes to the company.
HR is therefore simplified.
What are our views of HR analytics at Atcerp?
We believe that it all comes down to people, since they drive business performance.
HR is put on the right path with the advent of automation, as it removes the guesswork of employee management.
Based on a study by the University of Economics in Katowice in 2020, 83.6% of respondents believed that analytics affects company performance through better planning and utilization of the workforce, as well as positively affecting the company's organizational culture.