Role of Analytics in Human Resource management

A company is as good as its employees. The true capacity of a company can be understood by taking a glance at its employee base, as they reflect how efficiently a company works.

Human Resource (HR) Analytics or People Analytics is a technology that has the ability to effectively manage the employee base of a company by conducting an in-depth analysis of every facet of an employee ranging from engagement to performance in order to generate optimum levels of employee turnover.

HR Analytics makes use of Artificial Intelligence and Machine Learning to understand key employee drivers such as role of managers, company culture, working hours, incentives, attrition and many more in order to understand the best strategies in terms of promotion, salary decisions and training that can be used to reap the highest benefits through its employees.

An important avenue of Human Resources is Talent Acquisition, which is said to be the act of extracting diamonds from coal, in other words, finding the most exceptional profiles from the hiring pool.

Analytics can provide great insight into this avenue which can further be used to form an employee base that is highly productive and extremely passionate. People Analytics comes into play here as it helps in providing recommendations for companies which can then be used in realignment of hiring strategies that will provide them with the best results.

HR Analytics or People Analytics is of great advantage to a company’s operations and strategies:

• Strategic HR Decision Making: Automation of the HR domain can help in providing accurate recommendations which guide better hiring decisions.
• Long Term Planning: Analytics not only helps in the short term, but also in the long term as it can easily identify strategies that can likely help in an increment of quality employee retention
• Development of the Best Talent: Using efficacious incentive and training techniques, companies can increase their workforce competency and attain a highly proficient pool of employees that provide the best possible outcomes.

Employees are undoubtedly a company’s most valuable asset. There cannot be enough emphasis on the importance of a quality employee who can easily be considered the trump card of any enterprise. Hence, it is essential for any company to have impeccable human resource management which shall help it outshine its competition. HR Analytics can help in transforming and streamlining the HR processes and effectively centralize employee management for optimum benefits.