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Factsheet:

HR analytics

Resource summary

This factsheet was published in July 2016.

What is HR analytics?

HR analytics is the application of mathematical, statistical and data mining techniques to HR and business data to explore concepts and ideas and solve HR-related business problems. HR analytics enables better decision making by providing an organisation with insights about the workforce and the HR policies and practices that support them. Analytics may be used to look at the traits of the workforce, in particular its human capital: the value of individual knowledge, skills and experience of individuals and teams. This is also known as human capital analytics. When an organisation reports on the insights gathered through HR analytics, it's often known as human capital reporting.

Why is HR analytics important?

HR analytics enables HR managers and teams to understand more about the people in their organisation, how they’re performing and how they’re creating value for the organisation. In turn, this enables HR practitioners and business leaders to make better business decisions. It’s also the main way that HR teams can demonstrate the impact that HR policies and processes are having on the organisation. Business managers are increasingly interested in how to use HR concepts more effectively, and so HR analytics is an important way in which HR teams can evaluate and improve people and business performance.

Login or register for a free account to continue reading this factsheet and to learn about:

  • What is HR analytics?
  • What is HR data?
  • How does HR analytics work?
  • Who  is responsible for HR analytics?
  • What is HR analytics strategy?
  • What is the HR analytics process?
  • Examples of HR analytics in action
  • CIPD viewpoint
  • Further reading

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