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

Build Career in HR Analytics

Often, the role of human resources (HR) managers and executives is considered to be confined to hiring, extending offer letters, etc. However, this is not the reality. Of the various functions associated with HR, there is one called HR Analytics. In this article, you’ll gain a proper understanding about what HR analytics is, in what context is HR analytics used, and the critical business benefits of HR analytics.

What is HR Analytics?

Let us now look at different uses of HR analytics. There is a huge amount of data generated by organizations every day. This data is not useful in its raw form, however, when processed, organized, and analysed, this data can be used to compare and analyse and give insights. This is why human resource analytics is needed. Precisely, the data processed by human resource analytics can be used for understanding the following.

  • Employee turnover
  • Time taken to fill a vacancy
  • Productivity of employees
  • Learning and development impact on employees

The evidence obtained through human resource analytics on these aspects can help an organization plan for the future and make the improvements needed.

How Does HR Analytics Work?

This section will help understand the working of human resource analytics. The process of HR metrics and analytics is composed of four primary aspects.

Data collection

This is the first step wherein high-quality data is collected and grouped. It is also the most vital component of HR metrics and analytics. Two types of data are collected in the HR metrics and analytics process: internal and external.

Monitoring and comparing the data with past performance

In stage 2, the data that is collected and grouped is assessed and compared to calculate HR metrics. Some of the HR metrics considered include recruitment, time taken to hire, headcount, demographics, etc.


In the third stage, the metrics obtained are used to identify the organisational impact that has been brought about by HR initiatives. Some of the analytical methods used are

  • Prescriptive analysis: to predict future consequences
  • Predictive analysis: to analyse historical data
  • Descriptive analysis: to understand historical data and identify improvement areas

Utilizing data for remedial measures

In the last stage of HR metrics and analytics, the results obtained, and insights gained are used to make improvements.

Challenges Faced During Implementation of HR Analytics

Some organizations may not have the analytical and statistical knowledge to analyse large datasets. This could be due to any of the following factors –

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

Benefits of HR Analytics

Some of the many benefits of HR analytics are as follows –

  1. Better talent acquisition
  2. Better staff retention
  3. Prevention of workplace misconduct
  4. Improved productivity
  5. Removing skill gaps
  6. Better employee experience
  7. Reduced attrition rate

Latest Trends in HR Analytics

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

There is also a need to understand that people who want to advance their career in human resource management or upskill themselves can choose to do a course in this domain. There are various reputed institutes that offer a course in HR analytics. During the course, you will gain theoretical knowledge and some practical experience in how to leverage and use HR analytics. There are multiple courses on Emeritus India you can choose from to advance your career.

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