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The role of HR in the growth of People Analytics

What is HR analytics?

HR Analytics, to put it simply, is a data-driven method for the management of people at work. It is the method of analyzing accessible resource-related data to assess the efficiency of HR programs and to define patterns for making significant business judgments. This emergence of analytics has assisted the HR to develop from being transactional and responsive to creative and proactive. This analytical assistance has been provided to the HR by the use of advanced applications to provide fundamental reporting using BI tools with dashboards and data warehouses. HR analytics also referred to as people analytics, workforce analytics, or talent analytics focuses on providing information based on data to strategize on workforce planning, compensation, diversity etc.

How HR analytics helps Human Resource Management

HR analytics is evolving HR. It allows HR to:

  • Make better choices using data

  • Create a business case for HR interventions

  • Test the efficiency of these interventions

  • Move from an operational associate to a tactical or even strategic associate.

To contribute strategic importance, maintaining records is often insufficient. In Carly Fiorina's words: “The goal is to turn data into information and information into insight”. The same is applicable for the HR as well as it allows the HR to become more engaged in strategic decision-making.

HR analytics is similar to people analytics but there are some slight differences in how terms are used and often used interchangeably. Both terms apply to the statistical analysis of people data. HR analytics has become the most popular of these terms. Google's HR analytics searches average about 5,500 a month. With about 1,500 hits per month, people analytics is placed second.

Getting started with People Analytics

People analytics refers to the analytics technique that can help managers and executives make decisions about their employees. It uses statistics, technology, and skills to large sets of talent data, resulting in an organization making better management and business decisions. For most HR departments, people analytics is a fresh domain. Companies seek to better drive people's return on their investments

How HR Can Contribute to People Analytics Success?

  1. Focus on Right Problems: Comprehension of business goals, pain points and recognizing the right issues is absolutely essential. Work to identify the right issues with the business leaders.

  2. Develop a roadmap for analytics: Build a roadmap for analytics investment for a wide range of analytics

  3. Develop Data Strategy: People analytics rely on data intersections across the organization and external sources, so it is crucial to have a data strategy to organize structured and unstructured data.

The objective of human resource analytics is to provide an organization with insights to manage employees efficiently so that business goals can be achieved quickly and effectively. HR Analytics is not only concerned with collecting data on employee efficiency. Instead, it seeks to provide understanding into each method by collecting data and then using it to make appropriate decisions on how to enhance the processes. The task of HR analytics is to define what data should be collected and how to use the data to model and predict skills so that the organization can make an ideal return on investment on its human capital.

HR analytics therefore holds huge significance for an organization. Indeed, analytics allows businesses to measure the impact of people's policies on business. By implementing complex statistical analysis, HR can foresee the future of the workforce. Furthermore, knowing the influence of HR policies will help Human Resource to become a strategic partner. It will enable HR to align its strategy with goals and objectives and evaluate the value it adds to the business.


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