Build a Career in HR Analytics – Importance and Features of HR Analytics

Build a Career in HR Analytics – Importance and Features of HR Analytics | Human Resource Management | Emeritus

The field of human resources has drastically changed with the emergence of data. It (widespread use of data) has given rise to a new discipline or term: human resource analytics

This article will offer information on HR analytics, its benefits and its role in an organisation.

What Is HR Analytics, and What Is Its Importance?

HR analytics or people analytics collects, converts, and uses employee data to make decisions for talent management, placement, and other HR processes. The data is also used to identify employee problems and misconducts, draw deep insights about employee experience, and observe patterns or trends related to employee performance, productivity, etc.

Let us now look at different uses of HR analytics.

  • Determine employee turnover
  • Calculate the time taken to fill a vacancy
  • Measure the productivity of employees
  • Develop learning and development programmes for employees

How Does HR Analytics Work?

Here’s a step-by-step guide on how HR Analytics works.

  1. Data collection: This is the first step wherein high-quality data is collected and grouped from different sources. Two types of data are collected in this process: internal and external.
  2. Monitoring and comparing the data with past performance: The structured data is assessed to calculate HR metrics in this stage. Some HR metrics include recruitment, hiring time, headcount, demographics, etc. It is then compared to the previous data of the company.
  3. Analysis: The metrics obtained in the previous stage are used to identify the organisational impact that HR initiatives have brought.
  4. Utilising data for remedial measures: In the last stage, the results and insights gained are used to make improvements.

Benefits of HR Analytics

    1. Better talent acquisition

Using HR analytical tools, HR managers can make data-driven hiring decisions rather than making choices based on gut feeling or intuition. These tools enable HR managers to quickly determine the best candidate that matches their expectations and prevents them from making hiring mistakes.

    1. Better staff retention

HR analytics gives companies a deep insight into an employee’s professional life- their performance, work experience, qualification, career goals, motivation, and more. This insight can be beneficial when developing HR strategies to boost employee morale, retention, and engagement.

    1. Prevention of workplace misconduct

It helps fight misconduct and similar issues by monitoring and tracking employee behaviour from time to time. Meanwhile, analytical tools also help predict misconduct trends in an organisation and suggest preventive measures.

    1. Improved productivity

HR analytics predicts the performance of employees and tries to understand what motivates the employees to perform better.

    1. Removing skill gaps

HR analyticals help in filling the skill gap arising in an organisation. They provide strategic and technical support to HR managers while designing and developing training programmes.

Moreover, analytics helps organisations understand if the employees use the opportunity and knowledge given during the training programme in their daily lives.

    1. Better employee experience

It determines the factors that enhance workforce experience, drive productivity and satisfaction and motivate them to perform better than their peers.

  1. Reduced attrition rate

HR analytics helps identify a company’s causes and patterns of employee attrition. It reveals the reasons why employees leave and why they stay in an organisation.

The reasons could range from underperformance to lack of skills, overworking to low compensation, and management issues to a toxic work environment.

Challenges Faced During Implementation of HR Analytics

  • Lack of access to good analysis and reporting software
  • Issues around compliance
  • Lack of access to quality data because of outdated systems

Technology is progressing at an unprecedented rate. Every sector, including the human resource process, is transitioning. Here are some latest trends in HR analytics, which also highlight the use of HR analytics.

  • Automation of recruitment
  • Use of Chatbots
  • Predictive Reporting
  • AI-enabled selection of new hires

People who want to advance their career in human resource management or upskill themselves can choose to do a course in this domain. Various reputed institutes offer a course in HR analytics.

During the course, you will gain theoretical knowledge and practical experience in leveraging and using HR analytics tools to gain a competitive advantage.

Emeritus India provides many HR analytics courses in partnership with renowned institutes like IIM, IIT, ISB, etc.


    1. What is HR analytics, and who is eligible to do HR Analytics Courses?

Human resource analytics is a part of digital HR, and it encourages HR managers to make data-driven decisions related to the human resource process.

To enrol in an HR Analytics course, candidates must have the following:

      • A bachelor’s degree in any field
      • Eagerness to learn analytical tools to solve practical business problems

You can learn more about the eligibility criteria for the HR analytical course by visiting the ‘Category’ section on our website.

  1. What are familiar data sources for HR analytics?
    • Recruiting
    • Exit interview
    • Succession planning
    • Demographic data
    • Compensation and benefits
    • Performance management
    • Employee survey data
  2. What skills are required to do HR analytics?
  • Knowledge of data
  • How to connect HR data to business outcomes
  • Well-versed in different data processing and analytical tools
  • Data visualisation
  • Data storytelling

About the Author

Manager, SEO Content
Rounak Sharma, a talented author with 4.5 years of experience, excels as an SEO content manager. Specializing in finance writing, she simplifies complex concepts and provides valuable insights on personal finance, investing, and budgeting. Expert in competitive analysis and keyword gap research, Rounak formulates content strategies for organic brand growth. When she is not crafting great content, Rounak can be found on the dance floor for some well-deserved partying.
Read More About the Author

Learn more about building skills for the future. Sign up for our latest newsletter

Get insights from expert blogs, bite-sized videos, course updates & more with the Emeritus Newsletter.

Courses on Human Resource Management Category

IND +918277998590
IND +918277998590