HR Analytics is the use of people data in analytical processes to drive organizational success by evaluating and designing better systems and solving business problems. Critically, it enables evidence-based decisions to be made using data collected and synthesized from a variety of sources both within and outside the organization. HR analytics uses people-data, collected by HR systems and business information systems within the context of the operating environment. At its core, HR analytics enables HR professionals and the organization to gain insights into the performance of the workforce so that the investment in the ‘human capital’ brings improved performance, and higher productivity and guarantees the organization is ahead of the competition.
HR analytics enables HR and the major stakeholders to measure and report on workforce performance, well-being, productivity, innovation, and alignment. Additionally, analytics allows HR teams to demonstrate the impact that HR policies and processes have on the workforce and organizational performance and is used to demonstrate ROI and SROI investment for HR activity. Line managers are increasingly interested in how to manage their teams more effectively; HR concepts and analytics demonstrate how to evaluate and improve people and business performance.
