4 Ways to Use HR Analytics for Better Business Decisions
Human Resources (HR) is a field that’s always changing and evolving and a lot of it comes down to companies implementing different HR analytic tools. Many businesses are moving towards HR practices that are based on data and analytics, whereas a lot of other businesses haven’t yet realized the importance of data for better business efficiency.
HR data analytics is an area that’s getting more and more developed each day and there are even some HR departments that have analytics experts dedicated to their HR data strategies. In a few years, the trend will move towards more businesses focusing on this as they see the benefits reaped by companies who took the leap earlier and had success and increased productivity.
There are 4 main ways for HR analytics to help businesses make key strategic decisions, and we’ll explore each in detail here.
HR analytics can help identify workplaces changes and issues before they even arise which is highly beneficial for an HR department. One of the major benefits of using HR data is allowing HR managers and leaders to use data from mergers, layoffs, acquisitions, and using this information to predict and proactively manage any changes that will occur in the company.
This is possible because data received from HR allows analysts to understand employee behavior, how they work overtime, how they use their time at work and off work, why they are in that position, how many hours they bill and when, and how people work together. Without this information, it’s impossible to truly understand how the workforce is performing and how productive they are.
Recruitment and Employee Retention
As an HR manager or leader, one of the main areas of responsibility is recruiting, training, and retaining candidates that are qualified and a good fit for the company. As per Francine Magritte, a project manager at Brit Student and Write My X, “to work in HR, it’s still important to have people skills and other soft skills, but it’s now just as important to be able to understand data analytics to evaluate every aspect of HR like hiring, training, and how to retain top talent and review employee files.”
An example of this is to run data analytics if your company has many employees but you’re not turning a profit despite having great sales. You could find out that your workforce costs are much higher than the revenue and you can redistribute your staff and eliminate positions that are redundant.
According to Peter G. Harrison, who works in human resources at Australia 2 Write and Next Coursework, “having data analytics allows companies to develop a successful and more efficient HR strategy by giving good workforce analytics. Business strategy is a key need for every organization and it’s even more important now with all the technologies available to companies.”
In fact, the best tool to invest in as a business is HR analytics because the insights to be gained from it are very useful for building an HR strategy. A business cannot be successful without developing a good strategy for short- and long-term recruitment and retention, so by analyzing the data from the company, HR professionals can figure out a plan to find the right people for positions and reorganize the org chart if needed.
Improve HR Professionals
HR professionals can boost their capabilities and focus on more important aspects of their job if they can get HR analytics to help them out by automating certain tasks. HR personnel that are interested in progressing from administrative work to a more strategic, decision-making role, can use HR analytics to get ahead. This allows HR professionals to progress in their career and make a valuable contribution to the organization. With good HR data, you can contribute to marketing and recruitment strategies and improve the skills necessary for businesses in the digital age.
HR analytics is not a trend that will come up in the future – it’s already happening. Companies can adopt HR analytics now to make better decisions for the business. HR analytics is also a good investment because it is constantly improving and adapting for company needs and allows businesses to be more strategic and productive.
Michael Dehoyos, a business expert at PhD Kingdom and Academic Brits, helps companies develop marketing strategies and human resources strategies. He enjoys sharing his many decades of experience with companies to help them improve their efficiency. His writing is also available on the Academic Paper Help blog.