How does HR Analytics Help Human Resource Management?

Human Resource is one of the most important departments of an organization. It is one of the professions that are high in demand and required by every organization. Why do people always assume that HR teams’ job is to only handout offer letters or recruiting new people? Let’s bust the myth right here! Using HR Analytics can help you transform the working process of your Human Resource department. Read the blog to find out the impact of HR Analytics over HR Management.

What is HR Analytics?

HR Analytics is also known as People Analytics, Talent Analytics or Workforce Analytics. HR Analytics is mainly collecting and analyzing talent data to extract valuable insights that can help in the betterment of your workforce’s performance. It empowers you to use data driven insights to attract, manage and retain a successful workforce. Data analytics can be used as a tool to better understand employees and their engagement levels. Analytics or Analysis is derived from the Greek word “Analutika” which means the process of dismantling or separating into constituents.

There are a lot of benefits of using HR Analytics on a daily basis. It helps improve ROI, retention rates and business process. Analytics also helps in evaluating goals, KPIs and collecting data to make future predictions about the workflow. Now that you what Human Resource (HR) Analytics is, let’s see how to use it.

?Uses of HR Analytics

Think about where can you utilize HR Analytics; literally everywhere! In whatever role of HR are you into, you can use data to your advantage. It is important to know what is important to the organization. We cannot start measuring everything that comes our way. An example is that of attendance. I am not suggesting we should abolish monitoring attendance, but we should not stop just there.

If we start measuring everything that we encounter, we will get ourselves in what is “Analysis Paralysis”, where we overanalyze the data and get off-track. Remember we need to pick and choose only those measures which are consistent, important and few. Few but sufficient.

• Insomnia costs an average American worker 11.3 days, or $2,280 in lost productivity each year and in total it adds up to $63.2 billion (and 252.7 workdays) for the entire country.
• Cost per employee in US $1,200 to $1,400
• Replacing an individual employee can range from one-half to two times the employee's annual salary
• The overall turnover rate in the U.S. in 2017 was 26.3%
• Unscheduled absenteeism would roughly cost $3,600 per year for each hourly worker and $2,650 each year for salaried employees
• A disengaged employee on an average salary level is going to cost you almost $16,000 per year.

Each of these interesting examples show the importance of data collection and if you can evaluate the cause and effect relationship for each bit to your goals, you can focus your attention of improving the measures.

An example is of insomnia! If you know what is costing your company if your employees do not sleep well a night before, you can ensure wellness programs are in place which can ensure providing assistance to employee to overcome stress in life.?

In today’s data driven world, it has become very import for human resource to not just collect the data, but use it wisely as well. HR Analytics will help you predict the performance level and future potential of a talent in your organization. Implement HR Analytics and observe how it increases the productivity of your employees.

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