HR professionals have a lot of responsibilities, from fielding leave of absence requests to dealing with employee relations issues. No matter how big or small your company, it can be hard to keep track of all of the information passing through your HR team.
HR data analytics — sometimes called people analytics or workforce analytics — can help you make sense of employee data and make better, data-driven decisions. With built-in dashboards and reporting tools powered by artificial intelligence, modern HR tech platforms break down data silos and drive better business outcomes.
Here’s what HR professionals need to know about HR data analytics, including four ways to put it to work for you and your team.
What Is HR Data Analytics?
HR data analytics refers to the practice of collecting and processing data in the human resources department, with the goal of making more informed decisions. For example, you can collect data on employee turnover or job satisfaction in order to improve the employee experience and make better decisions during the hiring process.
Although HR professionals have long used a data-driven approach to make decisions, modern HR tools can process larger data sets. Artificial intelligence (AI) and machine learning algorithms make it possible to analyze HR metrics in real-time and use data visualization tools to interpret data points more easily than Excel spreadsheets.
HR departments can perform a data analysis in-house or outsource it to a third-party. HR professionals who specialize in data analysis are called HR analysts.
Types of HR Analytics
There are different types of HR analytics that depend on your goals, such as looking forward to actions you can take in the future vs. reevaluating actions from the past. These four types of analytics apply to any type of data analysis, not just HR:
- Descriptive analytics are used to analyze current or historical data sets, such as your employee attrition rate or your current staffing levels.
- Diagnostic analytics are used to determine why something happened, such as an increase in tardiness or absenteeism in the workplace.
- Predictive analytics help you figure out what’s likely to happen in the future — such as the success or failure of an employee relations initiative.
- Prescriptive analytics tell you what you should do to achieve an outcome, such as increasing staffing levels over the holidays or before a product launch.
HR leaders can use HR analytics to address a specific problem, to identify patterns in employee behavior, or to improve HR processes and business performance.
4 Use Cases for HR Data Analysis
Microsoft defines big data analytics as the analysis of “varied, high-volume, high-velocity data sets.” As HR teams collect more and more data, they need more advanced tools to process and analyze these data sources. Fortunately, modern HR tools like Pulpstream make it easy to share and analyze data and collaborate on strategic initiatives.
Here are four ways to incorporate HR data analytics into your HR strategy.
Increase employee engagement
Employee engagement refers to how invested employees are in their organization. By tracking employee engagement, you can take steps to increase employee well-being and job satisfaction by offering a more flexible work schedule, expanding employee benefits, or providing more professional growth opportunities.
HR analytics can help you determine the root cause of employee relations issues and find solutions. For example, if employees are increasingly asking to work from home, you could create a remote work policy to standardize the arrangement.
Reduce your turnover rate
Workforce analytics can help you maintain appropriate staffing levels and increase your employee retention rate. On the one hand, you can use HR analytics to anticipate how many employees are likely to leave your company. You can also use data gathered during the employee exit process to find out why employees are leaving.
Data analytics can also help with succession planning, or the process of filling future vacancies by preparing other qualified employees to step into the role.
Streamline the recruiting process
The recruiting and onboarding process is your chance to make a good first impression and welcome new hires to your team. HR automation platforms like Pulpstream allow you to provide a memorable onboarding experience for each new hire.
First, use talent management tools to process resumes, identify skill gaps, and vet candidates based on their experience and skill sets. Then, use HR data analytics to track key metrics such as how long it takes new hires to complete their training and onboarding documents and how satisfied they are in their new position.
Track employee performance metrics
Employee performance metrics range from sales figures to work efficiency metrics. HR data analytics can help you identify fast learners and star performers, as well as team members who need some extra help. Use self-assessments, peer reviews, and other performance management strategies to improve overall team performance.
Best Practices for HR Data Analytics
Expanding your use of data in the HR department can raise some questions, such as how much data do you need to collect, and what should you do with it? Follow these best practices for HR data analytics to reduce risk and ensure HR compliance.
Collect data wisely
Not every piece of employee data needs to be analyzed, and employees may object to HR data collection that feels unnecessary or intrusive. Managers may resent having to make decisions based on analytics, rather than exercising their own judgment.
When collecting data, get buy-in from as many team members as possible and make sure they know why you’re monitoring specific data points. Balance your reliance on machine learning and AI with human insight from HR analysts.
Store data securely
Big data sets can present big risks to your organization if sensitive information is lost, stolen, or damaged. Storing data in the cloud is generally more secure than storing it on-site, especially if you use a trusted document management platform.
Pulpstream’s security and data protection practices include 24/7 security, data backup and redundancy, and AES-256 encryption of all customer data. Plus, the Pulpstream team is HIPAA trained and certified, and compliant with GDPR, CPRA, and CCPA.
Minimize data silos
Data silos arise when multiple teams or departments use their own data management systems and store information in separate repositories or databases. This can lead to incomplete or reductant data sets, and impede the accuracy of HR data analytics.
You can eliminate data silos by using a human resource management platform with support for third-party integrations. For example, Pulpstream’s API is compatible with Workday, ADP, Salesforce, DocuSign, and more, making it easy to share information across your technology ecosystem, including desktop and mobile devices.
Expand Your HR Data Analysis with Pulpstream
HR data analytics, or people analytics, helps organizations make data-driven decisions about their workforce. As HR platforms collect more and more data, HR departments will need more advanced HR data analytics tools to interpret it. HR analysts are responsible for making sense of big data and using it to achieve overall organizational goals.
Cloud-based HR platforms like Pulpstream provide real-time reporting dashboards and handy data visualization tools. From turnover rates to employee performance metrics, HR data analytics can provide valuable insights into what’s really going on.
Plus, Pulpstream’s no-code interface makes it easy to automate data collection and analysis and share key information with stakeholders.
Request a demo today to see how it works!
