The Benefits of HR Analytics

By: Together Abroad 29-05-2017 1:00 PM
Categories: ** HR Strategy,

HR analytics, also known as predictive retention modelling, is the application of analytics processes to an organisation’s human resources department, for use in performing workforce optimisation. The aim is to use the collected data to provide insights to effectively manage employees, so as to help reach the organisational goals efficiently. Doing this requires identifying the data that should be collected, plus how to use said data in order to replicate and predict employee performance. This way the organisation can determine how to receive a greater return on its investment. HR usually already collects the data used—such things as employee's personal information, attrition, performance, and compensation benefits.

Some advantages of using HR analytics include:

Increasing accuracy of hiring decisions - Better decisions can be made based on the historical data used in HR analytics. If the HR analytics tool works effectively, an organisation can decide on the best candidate to hire using the historical data. Mistakes are easily prevented especially with regards to hiring or firing, since recruiters can learn more about candidates through online resume databases, applications, social media profiles and so on, to see if they are a good fit or if they are no longer useful to the organisation.

Improvement in training - HR analytics can provide great information necessary for training. Training is essential in all organisations. Issues with training can lead to various outcomes, for example, an increase in costs. With the data obtained, an organisation can see if employees are taking advantage of the opportunities provided. If not, it is likely time to cut costs and decrease the budget, which saves money, or to find alternative ways to have employees gain interest.

Helping maintain stability in the workforce - One of the main advantages of HR analytics is being able to establish employee retention rate, informing an organisation of reasons why employees leave or stay. There are countless reasons for leaving such as lack of compensation, difficulties with managers and so on. The data also helps to discover possible room for skills development or areas of the organisation in which employees struggle the most. With this information various strategies can be put in place in an effort to retain employees.
The Example of Google

HR analytics play a core role in an organisation’s operations and strategies. They are able to gain a competitive advantage because they can keep their workforce happy by not just collecting data, but by doing something about the collected data. For instance, Google is an organisation that has successfully used, and continues to use, HR analytics. Their mixture of quantitative and qualitative data gives them the opportunity to delve into their organisation’s inner-culture. Using HR analytics has helped Google improve their workplace. For example, in their Leadership case study: project Oxygen, Google utilised their analytics team to determine the difference managers make. They found that many employees including Google’s co-founders are averse to hierarchy.

Everything from managers’ performance ratings and upward feedback from surveys was analysed. The results were compared with productivity metrics, and the outcome was that great managers led to more engaged and productive teams. In order to establish a “great” manager, the employees then created the Oxygen Eight Behaviours for a “good” manager. Some behaviour includes: be a good communicator, empower the team, do not micromanage and have a vision.

Data Analysts

Data needs to be properly analysed. If managers or employees struggle to use the data adequately, it is most likely because they do not understand how to interpret the data. One option would be to either internally or externally hire a data expert. This individual must be able to properly mine and interpret data. Since such a person is not easy to find, many companies have resorted to hiring Big Data analysts or data scientists. Finding someone that can properly interpret data will help to spot noticeable trends that could be improved within the organisation.


All organisation no matter their size, location or goals, would greatly benefit from using HR analytics. They are key to making strategic HR decisions. HR analytics uses real data directly from the organisation, these can be easily applied to help make more accurate decision with regards to worker numbers, training budgets and so on. Therefore, there is no need for estimations and the amount of inaccurate decision may well decrease. Adopting a tool such as HR analytics must be done carefully and precisely. If the correct care is taken and data is properly interpreted, organisations will be more able to identify high-risk employees, and to build profiles of employees that are likely to stay or leave more accurately.

Lucine Bassa

Photo credit: Designed by Freepik

This article is restricted. You have to be logged in to be able to add further reactions.

Our Career programs assist you to Get hired

For an expat moving to the Netherlands, getting the right direction is very important. It's important that one knows which steps and direction to take. Linda is an exceptionally talent counselor, her advice has helped me land a job within a week of coming to the Netherlands. I am grateful for her mentoring and look forward to a great working relationship in the future.

Dr. Hrishiraj S | Clinical Research & Affairs Manager

Together Abroad provided expert advice on personal branding including developing a top-notch, market-aware CV, highly tailored job applications, and approach strategies with potential employers in the Netherlands. Furthermore, I found them be highly knowledgeable in key related fields such as recruitment strategy, immigration law, contracts, labor agreements, and (un)employment benefits. I would recommend Together Abroad to anyone who needs professional help with transitioning to a new career.

A. Aboufirass | Structural Engeer

Linda is a big mind. She thinks about things that the rest normally overlook. The insight she has about the dutch job market can only be achieved through years of experience and persistence.

Her business savvy is complemented by her mastery of understanding the client's needs and requirements. For my career I could say, she was the “Mary Poppins”, who guided me through thick and thin and helped me to land a career in the Netherlands

S. Bhattacharjee | FP&A Manager

If you are going to enlist the services of a "Career Coach" look no further. The only person you want in your corner is Linda van Orsouw. As an expat, you absolutely want to work with a highly skilled and knowledgeable professional who knows their way around the Dutch career/employment/job market. Linda assisted me in writing and positioning my CV, helped me organize and prioritize my list of opportunities, coached me through mock interviews and was there when I got offered a senior position only 2 months later. When asked I will only refer to Linda and "Togetherabroad".

Mr. C. Joubert
Lead Workplace Strategy Consultant 

 

New item