Posted April 6, 2012 by Team AnalyticpediA in Analytics

Applications of HR Analytics

HR Analytics
HR Analytics


Today, there is a pressing need for leveraging accurate and timely information in organizations. This is all the more true for the Human Resource function, as it can provide competitive advantage to the organizational performance. HR managers look for getting an insight into how the organization’s competitiveness and performance has changed over a period with respect to the employee’s performances. They would like to measure and analyse how their department has contributed to the overall excellence process in the organization resulting in increase in efficiency. Human Resource Management Department usually faces challenges in Performance, Recruitment, Training, Payroll Management and Effective Employee Relations. They need to track not only the development towards the established objectives but also the reasons for the performance towards these objectives. Apart from that they would want to know about insights which might be shared and applied across the organization.

I have listed the various functions under major areas where HR Analytics could help the managers in taking effective decision making by equipping them with right inputs. (This is not an exclusive list)

HR Function PerformanceEmployee satisfaction, Job evaluation factor, Workforce stability factor

Workforce DemographyDemographics of the Employee, Distribution of employees with respect to skill sets, Management to worker ratio

RecruitmentApplicants Database Management, Cost incurred during the recruitment process , Average time to fill requirements ,Effective usage of channels

Training & Skill Development  Training expense as percentage of revenue, Percentage of training budget spent, Average training hours and training costs per employee , Departmental training costs vs. budget allocated

Leave & Absenteeism  Leave and types of leave availed, Cost of leave availed, Details on unauthorized absence from duty

Compensation & Benefits  Average compensation ratio, Payroll cost per employee, Deviation in salary costs from industry benchmark, Cost comparison over periods to identify growth trends

Employee Performance  Number of employees appraised at different levels, Employee performance across divisions

Employee Relationship Grievances reporting, Average time taken for resolving grievances, Details on locations / divisions with maximum grievances received, Number of employees’ suggestion implemented

Last But not the least- AttritionAttrition rate, Critical resource attrition, Average employee life in the company, Reasons for exit

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