HR analytics attempts to solve HR-related business problems by understanding and analysing data and applying analytical processes to an organisation's HR and business data. At its core, HR analytics enables HR practitioners and employers to gain insights into their workforce, HR policies and practices, with a focus on the human capital element of the workforce, and can ultimately inform more evidence-based decision making.
The factsheet examines the importance of HR analytics in understanding how an organisation's people are creating value, and provides a thorough breakdown of the quantitative and qualitative forms of HR data, including the cause and effect relationships between data sets. The factsheet looks at the three main levels of HR analytics capability: basic analytics, using multidimensional data, and predictive analytics, and considers the key people responsible for HR analytics in a workplace. It examines the three aims of an HR analytics strategy and the nine steps of the HR analytics process, from planning to evaluating. The factsheet concludes by looking at several examples of HR analytics in action.