The company requires performance improvement from every existing department. For example, an increase in functionality by the HR department will come across terms like HR analytics.
Then, what are the benefits of HR analytics? Why should the company need such analysis? Let’s look at the following article.
Understanding HR Analytics
HR Analytics is the process of collecting, analyzing statistical data, and reporting human resource management data.
The existence of this analysis in order to know and measure the performance of the HR department and to improve employee performance.
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In addition, HR analytics as a measurement metric for corporate decision making based on data that is useful for company progress.
There are several contexts from HR Analytics, such as data analysis related to employee performance, career development, employee satisfaction, attendance , salary management, and others.
Benefits of HR Analytics
The following are the benefits of having HR analytics, including:
1. Reducing Employee Turnover Rates
The use of HR analytics can help the HR team to find out the analytical patterns of high employee turnover rates.
There is analysis so that companies make decisions based on data to select prospective employees and minimize high turnover costs.
2. Employee Recruitment System
The next benefit is that it can help HR to get candidates that are suitable, qualified, and able to adapt to the company.
HR analysis assistance makes the employee recruitment process faster and more cost effective.
3. Employee Performance Productivity
The next benefit is the productivity of employee performance for all company departments.
Companies can carry out analysis, starting from employee workload to employee performance so that it is optimal.
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4. Corporate Strategy Plan
The HR department can take part in making corporate strategy.
The method is done by providing an explanation of data analysis and reports by the HR team which can be a plan to be implemented in the workplace.
Types of HR Analytics
1. Operational Report
Operational reports are the basic level of HR analytics and companies to study past events and experiences to become current lessons.
For example, there are additional aspects to the employee training module for this period compared to the previous period.
2. Advanced Report
Furthermore, there are frequent follow-up reports compared to operational reports.
This report examines the relationship of certain variables with the company’s new trends.
For example, companies use hris online to compare the productivity of employees working with a work from home system or in the office.
3. Strategic Analysis
Well, the next type is strategic analysis. Companies use this data to overcome certain challenges.
For example, the HR department measures what influences employee turnover rates.
4. Predictive Analytics
Predictive analysis is an analysis of HR development at the most advanced level. This analysis can provide useful results, reduce costs, and save time for personnel.
This analysis process is in order to get a robust system for predicting, handling, and measuring HR trend data.
For example, companies measure the highest turnover rates when the economy is down.
5. Big Data Analysis
Big data analysis uses data mining techniques and predictive analytics to identify trends and patterns in large and complex HR data.
Examples include analysis of strategies for reducing turnover , employee profiles, and consumer behavior.
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Why Companies Need HR Analytics
The HR management process allows the company to obtain information and data for strategic decision making related to business development plans, product development, and expansion into new markets.
Data is very important so that the decisions taken are wrong and not based on assumptions or subjective experience.
Therefore, you can easily access data management through just one HR Analytics dashboard .
So, those are some reviews regarding HR analytics. We hope this article will help you find out how to manage HR data.