What are the best ways to use BI tools for HR analytics?

1 Define HR metrics and KPIs

Before using any BI tool, you need to define what HR metrics and key performance indicators (KPIs) you want to measure and track. HR metrics are quantitative measures of HR activities, such as hiring, retention, training, diversity, or satisfaction. KPIs are strategic metrics that reflect how well HR is contributing to the organization's goals, such as revenue, profitability, or customer satisfaction. You should align your HR metrics and KPIs with your business strategy and objectives, and make sure they are relevant, specific, measurable, achievable, realistic, and time-bound.

2 Choose the right BI tool

When choosing a BI tool, there are several factors to consider, such as the data sources it can connect to and integrate, its ability to ensure data accuracy and completeness, its data analysis capabilities, and its data visualization features. Additionally, it should be able to protect data from unauthorized access and comply with data privacy and ethical standards. Furthermore, the BI tool should be able to provide data access to different users, roles, and devices. With all these criteria in mind, you should be able to choose the BI tool that best suits your HR analytics needs, budget, and preferences.

4 Analyze and visualize data

After you have collected and integrated data, you need to analyze and visualize data using the BI tool's features to gain insights and identify patterns, trends, and anomalies. You should use the appropriate type of data analysis for your HR metrics and KPIs, and apply any advanced analytics techniques that can enhance your data analysis. For example, you may use descriptive analysis to summarize and report your HR metrics and KPIs, diagnostic analysis to find out the root causes of HR issues or problems, predictive analysis to forecast HR outcomes or scenarios, or prescriptive analysis to suggest HR actions or solutions. You should also use the appropriate type of data visualization for your HR metrics and KPIs, and create charts, graphs, dashboards, or reports that can communicate your data analysis results clearly and effectively.

5 Act on data insights

The final and most important step is to act on the data insights you have gained from your data analysis and visualization. You should use the data insights to make better HR decisions, improve HR processes and outcomes, and align HR goals with business objectives. You should also monitor and evaluate the impact of your data-driven HR actions, and adjust or refine them as needed. You should also share and communicate your data insights and actions with relevant stakeholders, such as managers, employees, or executives, and solicit their feedback and input.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?