What you need to know about HR Analytics

Presently, data analytics is used in a lot of industries and companies. It is being applied to track web pages’ behavior, hardware performance, economic trends, among other things to let people and businesses analyze their information and take appropriate and suitable decisions. Analytics can also give to organizations the possibility to measure its processes and make the changes what they need to improve its manners, besides, with this data, companies can see what its customers need and what the market where they require.

The analytics concept has worked great for multiple activities, giving to people and companies’ real-time information in events never imagined like car driving habits, traveling ways or human behavior. Recently, one of the most interesting trends of analytics is Human Resources Analytics (HR Analytics), which lets companies know what their workers need and want. In other words, HR Analytics gives to employers the possibility of understanding their personal’ life and behavior. In addition, tracking them is not enough, but companies must know what to do with that data.

What is HR Analytics?

HR Analytics is also known as “HR Datafication” or “Big Data HR” and we can define this concept as the way that companies have to measure and track their employee’s’ engagement, the commitment to the organization goals and its performance in its tasks. Put differently, it is the way how employers receive data to get insights about its worker’s behavior, allowing the company to take decisions and make changes if they have to.

Related: How to retain valuable human resources by Jason Hanold

It is important to say that companies’ generated insights are not enough. This recollected data should be used to track workers’ skills and make choices, helping the company to reach more effectively its goals improving its profitability and resources. In other words, just the data is insufficient, this must be complemented with analytics.

HR Analytics components

There are some elements to consider for HR Analytics implementation. These are:

  • Analytics tools: There are some software, websites, and applications used to see and manage workforce information. These tools let companies visualize their own data and the employees’ insights. Some of these HR Analytics applications are LinkedIn, Oracle or Success Factors.
  • Data Analytics Providers: Currently, a lot of important organizations give statistics about workers and employers, what is very useful because allows companies to compare the data they collect in their HR Analytic tool with data generated by those organizations. Besides, these comparisons let companies see market trends, salaries, employees’ ages, among other things, which could be used to see how they are in the industry and what they need to improve.
  • Analytics management: This is one of the most important elements for HR Data Analytics because through this is how companies manage their information. This component refers to the tools used to manage, control and save its data.

HR Analytics in companies

For a successful usage and implementation of HR Data Analytics, companies must change some of their procedures and working manners, due to the modification of traditional operational behavior that analytics brings. In other words, this is a new way to measure and get insights about employees and its work, moreover, it is an amazing way to learn about what they want and need, so organizations must be prepared for this new reality.

HR Analytics are taking companies to a new level of knowledge and strategic decisions. With all the insights and collected data, organizations can identify and strengths and weaknesses of their personnel, helping employers to move better their human resource, rethink their incentives and understand what they need to work efficiently and comfortably.


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But HR Analytics is not only for employers and companies. This trend is letting workers see what other companies offer in terms of benefits, salaries, time flexibility, among other things, giving to them the possibility to consider new career opportunities or different professional challenges. In other words, HR Analytics is not only transforming the way how companies decide, but is providing new employment defies to workforce around the world.

HR Analytics tools are also an opportunity for any person and any company around the world, because through them, they can know and understand how businesses from other places work and what insights it generates, which permits workers from any country to see how their working status is and how they are comparing other employees around the world.

We can conclude that HR Data Analytics is a new way for companies to work, which gives them possibilities to generate different information about their people and how they work. With this, organizations will be more aware of persons who they work with. Besides, it is a huge opportunity for current companies, because they can get relevant information from many sources, allowing them to compare with other businesses and know what they need to do to benefit their employees and be more competitive than other organizations.