HR or Human Resource Analytics is the analysis that is made about the human resource or employees of the company so that strategies could be framed accordingly to improve their performance outcome and retain them for a longer period. HR Analytics does not relate with the collection of data for reviewing the performance of the employees at work, but with the purpose to gain insight in the human resources processes and find out ways through which the performance outcome of employees can be improved. This way attempts are made to develop such changes, reforms, and strategies in the organization that could help attain the contentment of employees from their workplace and ascertain their commitment to perform at their best to accomplish long term target goals and objectives for the organization. HR Analytics works on retaining the employees and reducing employee turnover so that the human capital can be nurtured and secured with the organization for a longer period.
Different methods are used for HR Analytics purpose which includes employee churn analytics, capability analytics, organization culture analytics, capacity analytics, and leadership analytics.
Employee Churn Analytics is used for assessing the employee turnover rate in the past which can be last month, quarter, half-yearly, yearly, etc. This way the employee turnover trend that is observed in the organization is identified and the factors responsible are recognized.
Capacity Analytics is the process that is used to analyze the capacity, skills, and abilities of the workforce so that a benchmark can be set and gaps can be measured to identify the outperformers and underperformers.
Organization Culture Analytics helps to review the system and patterns that are followed by human resources at the workplace so that the changes can be suggested and reforms can be made to improve organizational culture.
Capacity Analytics is the process that is used to review the capacity of the human resource to perform within the organization and give out a particular level of outcomes. This way efforts are made to find out how the individual capacity of the employees needs to grow and improve to accomplish target outcomes for the organization.
Leadership Analytics helps in analyzing the leadership performance at the workplace that helps in retaining the employees and motivating them to achieve certain outcomes and gains for the organization. This way the good and bad aspects of the leadership applied within the organization are trying to be revealed.
HR Metric Dashboard is a vital component of the Human Resource Planning and Strategy formulation process as it performs three top functions. The first function is to monitor the human capital at the workplace so that the new trends and emerging issues can be recognized at the earlier stage and could be dealt with accordingly. The second function is to help human resources perform better at the workplace by offering a favorable working environment and achieving their contentment from work so that their highest performance can be achieved and long term retaining can be accomplished. The third function is to tackle the problem areas which are responsible for hindering the development, growth and high-performance outcomes of employees by applying transparency at the workplace and decision-making process.
There are several benefits of HR Analytics which include, improving the hiring process and selecting the best talent from the industry who is also relevant to the workplace. Also it helps in reducing attrition and employee turnover and accomplishing employee contentment from their jobs to improve the work experience. HR Analytics also support in making the workforce more productive and capable of performing daily tasks to achieve long term target goals and outcomes. Hence the main target is to gaining employee trust and loyalty in the long run.