HR analytics is the use of people-data in analytical processes to solve business problems. HR analytics uses both people-data, collected by HR systems (e.g. payroll, absence management) and business information (e.g. operations performance 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 if an organisations workforce is generating value. It provides an overview of the quantitative and qualitative forms of HR data, including the cause and effect relationships between data sets. The factsheet looks at the main levels of HR analytics capability and considers the key people responsible for HR analytics in a workplace. It examines the 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.

This factsheet was last updated by Edward Houghton.

Ed Houghton

Edward Houghton: Senior Research Adviser:Human Capital and Governance

Edward Houghton is the CIPD's Senior Research Adviser: Human Capital and Governance.  Since joining the institute in 2013 he has been responsible for leading the organisation's human capital research work stream exploring various aspects of human capital management, theory and practice; including the measurement and evaluation of the skills and knowledge of the workforce. He has a particular interest in the role of human capital in driving economic productivity, innovation and corporate social responsibility. Recent publications have included “A duty to care? Evidence of the importance of organisational culture to effective governance and leadership” for the Financial Reporting Council’s Culture Coalition, and “A new approach to line manager mental well-being training in banks” an independent evaluation of the Bank Workers Charity and Mind partnership to deliver mental health awareness training in the UK financial services sector. 

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