HR analytics, sometimes referred to as people analytics, is a form of technology that helps the human resources department make better decisions based on the analysis reports of the industry. Like all other forms of analytics, it is designed to decrease the number of bad decisions made. In this instance, it is geared towards helping prevent bad hiring decisions and make the workplace more employee friendly and positive.

To many places of employment these days are negative and humdrum. The employees that are working are there for a paycheck. Nothing more. Nothing less. On the other side companies are there to make money. They do not care how they get the job done; all they care about is the bottom line. Analytics will help both parties involved in more than a few ways, but we will cover some of the main ones here.

hr analytics

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Changes in the workplace

HR analytics will help the people that oversee people better understand what is being affected by specific actions of the company. For instance, when a merger happens the people working for both companies will have to be integrated into one. Changes are going to have to happen. HR analytics will help make those decisions that were at one time hard to do. The program will analyze how people are performing in their jobs, why people are in their perspective jobs, and what should be done to improve performance in those specific jobs. 

Proactive instead of reactive

Being proactive is always a better way to run a business. For example, let us take a transportation company. This industry relies heavily upon transportation software development services provider that can streamline their entire operation. HR analytics can maximize the work in every sector, from planning to shipping, by knowing what is going to happen before it happens. An initiative-taking approach will keep supplies and materials moving in and out of the company in a smooth and timely fashion.

Employee recruitment and retention

One of the biggest issues today is hiring employees that will be productive and have a positive influence upon the company, and the other employees. When those types of people are found and hired, they move on to other jobs that are more suited for them. Why is that? Simple. Companies have some bad employees. Those bad ones make it more stressful for the good ones to work so instead of continuing to deal with the constant issues they will simply move on to a different job that is more positive and upbeat. People analytics will help keep and retain the good employees and will help weed out the negative employees that bring the rest of the team down. Happy employees are productive and loyal. Stressed out workers will get discouraged and leave the company. If they do stay, they will become more negative as time goes on, making an even bigger impact upon the employees that are good.

HR Improvement

This type of analytics will help all the people working in HR become better at their jobs. They will no longer have to rely on their gut feelings to make decisions. They can go through the pertinent reports and make decisions based off facts. They can learn how specific people have influence in the areas that they work, in a positive or negative way. From there decisions can be made to improve the area, or to keep it the same if it is running smoothly.

HR analytics are designed to improve the production of the company, as well as increasing the retention of good employees, and removing the bad ones. This may seem like a move that is isolating employees. Maybe it is. People will have to step it up and be more productive and positive in their workplaces, otherwise they will be replaced by people that will be more than happy to have the job.