HR Analytics: Data-Based Decisions in Human Resources

4 of July, 2022

A HR analytics aims through artificial intelligence (AI) not only to leverage data-driven insights to address HR challenges; but also to exceed the normal boundaries and give strategic counselling to company managers as a means of solving challenges.

Words like AI and Big Data are sure to impress, but what exactly does HR analytics deliver? Keep reading to find out! 

Empower your team with an HR Analytics tool

Data analysts able to handle AI and Big Data are hard to find. Therefore, a People Analytics tool is the perfect solution. This kind of tool gets busy combining and analyzing patterns in structured and unstructured data settings through learning algorithms.  

HR has only a supportive role in organizational decision-making. However, you may hear how 71 percent of companies see HR analytics as a high priority in their organizations. This sounds impressive until you find that only 9% have actually implemented the system. Analytics has not made much progress of late with HRM’s, who proved notably reluctant to correlate their HR data with unrelated business data to help management in strategic decisions.

Meanwhile, with the amount of data that companies have nowadays, this behavior needs to change. HR analytics is here to stay and uncover the potential of businesses.

HR finally meets analytics

The main objective of this combination is to forecast the future by measuring real-time trends and patterns. HR managers can take sound courses of action based on empirically grounded decisions. And the work is based on data analysis of the past from which solution-based scenarios are proposed to answer the question that most troubles HR managers; what do we do now? Machine learning algorithms have the answer. 

How can analytics change the HR game?

Data gained internally across departments is added to outside sources governed by Google and social networks to create a “data warehouse” out of which all manner of well-illustrated and diagramed reports would emerge to solve organizational problems. It is a method that has proven itself in marketing, but not yet in recruitment, performance evaluation, personnel development, or health and retention management. The reputation of AI and ever-increasing volumes of data have raised expectations and contributed to a very positive image of HR Analytics.

Consequently, there are already many digital solutions out there. For example, Sesame HR recently launched its own people analytics tool. The best thing is that you can measure trends, understand the information through graphics and most importantly, make decisions based on statistics.