Human Resources Analytics: What It Is and Why It’s Important
What is HR Analytics?
“Human resources analytics falls within the realm of digital HR,” says Tom Penque, lecturer for the Master of Science in Human Resources Management program at Northeastern University. “As HR technologies and platforms evolve, there is more information [available for us to] capture electronically. HR analytics is about the different ways that we capture, measure, and organize that information to create valuable insights for an organization.”
How is HR Analytics Used?
In order to remain successful and competitive, all businesses and organizations must be capable of changing, growing, and evolving to meet the new challenges and realities that they face. This is true for every department within an organization, including human resources. HR analytics can be leveraged in order to create an iterative framework for making these necessary refinements as they become apparent.
The Impact of Analytics on HR
Below we explore the three areas of an HR professional’s work most positively impacted by HR analytics.
- Performance and Efficiency
Many organizations measure the success of human resources activities and processes by overall performance and efficiency. Tracking metrics can offer valuable insights into how well certain processes are performing.
- Recruitment and Hiring Processes
Filling open positions within an organization is often a costly endeavor, both in terms of time and money. According to the 2017 Talent Acquisition Benchmarking Report compiled by the Society for Human Resource Management (SHRM), it takes businesses an average of 36 days to fill an open position, to the cost of nearly $4,500 per hire
- Employee Experience
Human resources managers do more than sift through applications to fill open positions. They also monitor the employee experience and take steps to improve it, because happy employees tend to be more engaged. This engagement can result in higher productivity, greater retention, and higher levels of success overall.
Reference:
https://www.northeastern.edu/graduate/blog/human-resources-analytics/