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.