Human resource analytics is concerned with dissecting and analyzing data collected by the Human Resource department so as to improve the working force. It involves the use of models, math and statistics to spot, predict and control patterns in the human resource. HR analytics, closely tied to terms such as talent analytics and people analytics, is basically a data-crunching activity so as to aid in decision making in all HR aspects and strategies. The end goal is to acquire a lethally effective workforce and consequently increase company productivity and efficiency.
Uses of Human Resource Analytics
The branch of analytics in HR has found many uses and has benefited a lot of businesses. Companies find it very useful in employee recruitment, training, performance appraisal, retention and compensation. It does so by showing the right candidate for hire, the right training method, and the active and lagging employees in performance as well as helping in lowering the company’s turnover rate. HR analytics is expanding its wings with application into the business as a whole with additives such as predictive analytics.
Important HR analytics
Capability analytics involves identifying core capabilities, competencies and skills that are required in a company and comparing with what the company presently has in terms of those requirements. Any gaps or overlaps in skills and capabilities can then be spotted and taken care of.
Talent acquisition analytics shows how a company is fairing when it comes to acquiring the required talent. It also extends to show how the company can develop needed competencies in-house, instead of hunting outside in addition to showing a company’s competitiveness in attracting top talent.
Retention and turn-over analytics also referred to as employee churn analytics helps assess a company’s turnover rate and shows how to reduce high-turnover if it is the case.
Capacity analytics aid in showing the operational efficiency of the workforce and determining workforce capacity requirements for effective company growth.
Corporate culture analytics – a company usually has one or several corporate cultures across its organization. Corporate culture analytics helps in tracking and influencing the corporate cultures HR would like to encourage or eliminate and keep an eye on development toxic cultures.
Performance analytics helps track performances both individually or as a team. Through performance analytics, a company can identify and comment high performing employees as well as spot employees who might need more training and support.
Leadership analytics – poor leadership can be what is ailing a company as opposed to an underperforming workforce. Leadership analytics shows how efficient a manager or a supervisor is at his/her role through data collected by means such as employee interviews, surveys and ethnography.