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Making Analytics Work for HR Professionals

HR Analytics
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Around 58% of HR people believe analytics is important, but most HR departments fail to leverage analytics. Most people have no idea how to turn data into insights and how these insights are reliable. Tracking metrics can help drive changes and improve your workplace. This article lets you find out what HR analytics are, why they matter, and how to use them to make smart business decisions.

HR Analytics

HR analytics involve collecting workforce data to improve employee and organizational outcomes. HR analytics helps analyze issues and identifies better ways to improve the overall aspects of the organization.

As you analyze people’s data, you have to figure out possible solutions to eliminate the problems.

To find the right way, you have to check for the following points:

  • Checking if an employee brings up any specific issues in one-on-one meetings.
  • Re-evaluating policies in specific teams and at the company level
  • Finding how pandemic affected employee working experience

How does HR analytics matter?

Analytics help the HR department evaluate the health of the employee workforce and deliver actionable insights that enable employees to be more productive. Understanding your HR data improves process outcomes:

  • Analytics help hiring departments to enhance recruitment efforts and reduce costs throughout the hiring process.
  • Good HR analytics can help improve the overall business performance.

Where can you use HR analytics?

The following are some areas where analytics is useful:

  • Recruitment
  • Performance management
  • Compensation
  • Retention

Let’s see how HR analytics can benefit you in tangible ways in these areas:


HR analytics can positively impact your hiring process, and you can recruit the best talent.
Recruitment analytics can help monitor critical metrics such as:

  • Hiring time – managing the time between sending a job application to receiving an offer.
  • Sourcing – quality hires from a specific source.
  • Offer acceptance – how many candidates have accepted the job offer.

The percentage of candidates who are okay with the location change and migratory preferences.

Performance management

The following are some of the key performance indicators:

  • Employee and client satisfaction
  • Development programs an employee pursues each quarter
  • Self, manager, and peer assessments

Different feedback levels enable leaders to evaluate and build a roadmap for improvement. When these insights are complemented with the performance management system, you can receive timely insights on every aspect.


Compensation can have a positive impact on recruitment and retention strategies. Employees who are not satisfied with their paychecks will look for alternate options that better the pay. Some approaches to optimize the compensation process include


Audits look if there are any gender pays gaps in specific jobs, promotion rates, bonus eligibility, and more. Employers can retrieve insights from every aspect to check how the data works.


Key HR metrics can determine the retention rate:

Retention rate

The percentage of employees who wants to stick with the company over a certain period.

Determine the areas that need improvement to boost employee happiness and stick with the organization.

Technology for better analytics

Leveraging HR software helps businesses understand what’s going right and wrong. Technology can help keep your workforce engaged, ultimately improving employees’ attitudes towards the organization.

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