HR analytics explained: Using HR data to thrive

No business owner sees their workforce as more part of the machinery. We soon learn how important it is to keep people happy, committed and motivated.

But without the right data, it is difficult to know what you are doing well and where you are missing the brand.

That’s where human resources analysis enters. It helps you detect behavioral trends, understand them and make appropriate decisions in response.

In this guide, we will explain how HR Analytics works and how it can incorporate practice into its operations

What is HR Analytics?

HR ANALYTICS, sometimes called People Analytics, is the practice of using data on your employees to guide better commercial decisions.

It goes beyond the simple maintenance of records helping you discover patterns and connections in the performance of employees that are not always obvious.

These data may come from human resources systems, but also of finance, operations or equally external reference points. It may include things such as payment, training history or assistance records.

When analyzing in the right way, it helps you understand the trends and challenges of the workforce with more precision.

Advanced analysis tools can even use algorithms to mark changes in behavior as they emerge.

This gives you a stronger basic to plan human resources strategies.

The appropriate systems also ensure that your company always follows data protection rules such as GDPR when working with the personal data of employees.

Why is human resources analysis important for companies?

HR Analytics gives you an idea of ​​what is really happening with your workforce. Converts unprocessed data into useful information, allowing you to take measures with confidence.

You can identify problems and correct them before they grow and interrupt their operation.

For example, thesis systems can:

• Improve recruitment efficiency Analyzing the time to hire and source of contracting. This helps human resources teams detect bottlenecks in the recruitment process and identify which channels bring the best candidates faster.
• Reduce employee rotation By pointing out departments or roles with high rotation and discovering the reasons, such as lack of training or poor management.
• Optimize the planning of the workforce According to commercial results, seasonal patterns or dropout rates. Analytics helps help thesis by providing personnel trends or forecasting future hiring needs.
• Effective impulse training Linking training data with performance metrics. RR. HH. You can see which learning programs offer the best results and adjust your approach to the most effective personnel.
• Improve employee participation When tracking the survey results and time commitment scores. The system identifies the falls in morality and tests the impact of new initiatives aimed at improving the experience of employees.

Ultimately, this means that you can make better decisions about hiring, retention and commitment based on the facts instead of the hearts.

Analytics also helps measure the success of human resources programs, from incorporation to training, and link the strategy of its people to broader commercial objectives.

What are the 4 types of human resources data analysis?

There are four central types of human resources analysis, each that offers a different view of the data of its people.

• Descriptive analysis Look at the historical human resources data and tells you what has happened. You can show that your employee’s billing rate has increased or that your average hiring time is sliding.
• Diagnostic analysis Explore why something happened. He could help him know that an increase in exits is driven by a particular team, or that hiring delays are due to longer approximation processes, for example.
• Predictive analysis Look forward. Use patterns in your data to predict trends and results, as is more likely that employees leave.
• Prescriptive analysis It goes beyond suggestion of what you should do next. According to data and the problem in question, it offers concrete actions. For example, you can indicate that priority is to reduce rotation or improve commitment.:

1. Flying employees and absenteeism

If many people leave or are frequently out of work, they can point out a bad moral, management problems or some systemic problem.

Stop this early allows you to address the root causes before the problem increases.

2. Productivity and efficiency indicators

These help evaluate the value of your team.

• Employee income It shows how efficiently it is operating in financial terms.
• Cost by rent It helps you control your recruitment expense and improve your hiring process.
• Effective training Analyze the value of learning programs. Does staff apply their skills? How long does productivity take to improve, if they do?

3. Employee feeling

• Employee Net Promoter Score (ENPS) It focuses on loyalty and general satisfaction. Ask what someone is likely to recommend their workplace to others. This gives you a simple and high level vision of how your team feels to work for you, and if there is a risk of mass disconnection or billing.
• Commitment scores Deepen the motivation and day -to -day participation. These are common based on broader surveys that cover areas such as purpose, recognition, workload and communication. High commitment scores suggest that its people are connected to their work, which leads to better performance and retention

Examples of human resources analysis in action

Imagine that you notice an increase in personnel that leaves an apartment. With HR Analytics, you can see the response of the output survey, performance data and absent patterns.

It would compare this information with the results for other equipment. This could show that poor management, such as excessive workloads, or lack of progression is moving people away.

You can respond by providing management training, offering clearer professional career or improving internal communication.

You can also review the distribution of the workload or conduct stay interviews to know what motivates the current members of the team to stay.

The goal is to learn to retain more personal.

Or take hiring. You can analyze the time to hire and cost for roles. If a position always takes longer to fill, you can change the recruitment process.

Perhaps your job advertisement is not clear, or the steps of your interview take too long.

How companies can start with human resources and analysis data

Starting with human resources analytics should not be overwhelming. Follow these simple steps to build a solid base and grow your focus on time.

1. Align your data with commercial objectives

Start identifying what matters most for your business.

Are you focused on reducing rotation, accelerating hiring or improving employee participation?

Choose metrics that directly support these objectives.

2. Collect the correct human resources data

Be sure to collect precise data that correspond to these metrics.

This could include assistance records, performance reviews, training history or survey results.

Performance management tools It can help in this regard. However, do not collect data just for this, make up what will use real.

3. Ensure governance and data protection

You must handle all employee data responsibly.

Establish clear policies on how the data is stored, access and use. Be sure to meet legal requirements such as GDPR at each stage.

4. Start simple, then build

Do not directly jump to complex predictive models.

Start with basic descriptive analysis and some key metrics. As your trust grows, you can explore deeper ideas and more advanced tools.

5. Use the correct tools

Good software facilitates the process.

Platforms and analysis tools of the Human Resources Information System (HRIS) can help you collect, track and data analysis efficiently.

Choose one that adjusts to its size, needs and budget.

For example, some advanced tools now use AI and automatic learning to admit predictive analysis.

They can help identify high performance employees who may be at risk of leaving or marking potential leaders for succession planning based on performance patterns and development history.

Human Resources Analytics as a strategic advantage

The benefits of human resources analysis go beyond improvements in their human resources processes: practice strengthens its entire business.

He gives him a clearer image of how his workforce works and helps him connect his people’s strategy with broader commercial objectives.

It is also a valuable ability. Understanding how to interpret and act on the data of the workforce can help human resources professionals and business leaders to make better informed decisions.

With the correct software, even those new ones in analysis can develop this ability over time.

The tools simplify the process by joining data and marking trends. Combined with Human Resources Report SoftwareYou can present these ideas in a clear and usable format.

Human resources teams can also improve data literacy, learn to extract the knowledge response and connect them to strategic results.

This helps to ensure that analytical activity remains aligned with long -term organizational priorities.

To know how leading companies are using human resources analytics to obtain a competitive advantage, explore the latest investigations in the Fosway Hr Analytics Insights Report.