How Does HR Analytics Help HRM? | AIHR Learning Bite


Hi, today we will discuss
what HR analytics is, and how it can help in
managing human resources. So stay tuned. Now before we outline
the importance and value HR analytics can add to organizations, let’s first define what HR analytics is. Human resource analytics
is a data-driven approach to managing people at work. HR analytics, also known
as people analytics, workforce analytics, or talent analytics, is about analyzing people data to answer critical questions
about your organization. Some example questions include how high is your annual employee turnover? How much of our employee
turnover is regretted loss? Do you know which employees will be the most likely
to leave your company within the next 12 months? All these questions can
only be answered using data. Now, most HR professionals can easily answer the first question concerning the annual turnover rate, but answering the second question about which part of the
turnover is regretted loss becomes more difficult. To answer this second question, you would need to combine
two different data sources, your human resources
information system, HRIS, and your performance management system. To the answer the third question
regarding which employees are most likely to quit, you would need even more data and more extensive analysis as well. Currently, even though HR departments have a tradition of collecting
vasts amounts of HR data, unfortunately, these data
often remain largely unused. However, as soon as organizations start to analyze these data, they are now engaged in HR analytics. So in other words, HR analytics
is a data-driven approach towards human resources management. Now that we’ve defined HR analytics, the question that we’ll answer next is how does it help human
resource management? Just like marketing analytics has revolutionized the field of marketing, HR analytics is changing
the way people are managed in a significant way. First of all, by using people analytics, you don’t have to rely
on gut feeling anymore. Analytics enables HR professionals to make data-driven decisions and helps them test the effectiveness of HR policies and interventions. In short, HR analytics allows you to make better decisions using data, create a business case
for HR interventions, test the effectiveness
of these interventions, move from an operational partner to a tactical or even strategic partner. You see, today, the vast
majority of HR departments focus on simply reporting employee data, but this alone just
doesn’t suffice anymore in today’s data-driven economy. Mere record-keeping is
most often insufficient to add strategic value. A prominent American businesswoman
and political figure, Carly Fiorina, once said,
“The goal is to turn data “into information and
information into insight.” This directly applies to HR. Turning data into insight enables HR to become more involved in decision-making on a strategic level. And in doing so, it adds
value to your organization by enhancing its efficiency
and effectiveness. Now, if you are interested in more details concerning
the way in which HR analytics can help you leverage data in a way that can enhance your career and the efficiency of your organization, remember to check out the
links in our description. And make sure to stay up to date with our learning bites by
subscribing to our channels. Also, if you liked this video, make sure you like and share it, and I’ll see you soon in
our next learning bite.

One thought on “How Does HR Analytics Help HRM? | AIHR Learning Bite

  • October 14, 2019 at 4:53 pm
    Permalink

    Can you share more practical approach rather therotical content of HR Analytics

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *