The benefits of HR Analytics

HR Analytics

“HR analytics is the application of statistics, modelling, and analysis of employee-related factors to improve business outcomes”. Sound confusing? Lets explain what it is and how this invaluable tool can benefit your business. Its grown in popularity over the last decade as companies are realising they need to embrace a data driven culture to succeed in retaining the best, driven employees to ensure their business is at its most optimal. By collecting data, and analysing it, that information can then, in turn be used to improve and add value to any organisation.

Data analytics provide the insight that businesses need to make effective and efficient decisions. Used in combination they provide a well-rounded understanding of a companies needs and opportunities. The primary goal is to increase efficiency and improve performance by discovering patterns in data.

How can HR Analytics benefit a business?

Improved performance is key to any business and can be greatly enhanced  by data analytics. It takes away the risk of “trying things out” and allows companies to understand the dynamics of their business, anticipate market shifts and manage risk accordingly, whilst reducing inefficiency and streamlining operations.  Should you follow your gut instinct? Yes, sometimes but data analytics and metrics give you actual facts and information. The majority of your business decisions should be based on detailed, factual information to grow and expand and compete in the market place.

HR analytics are helping to guide talent, management, and hiring decisions for organizations of all sizes and in all industries. HR plays an important role in business outcomes, and relying on data provides a key advantage in terms of decision-making. Though analytics won’t solve every HR challenge, it can provide an understanding of business functions and help trained HR professionals develop plans that optimise talent investments while effectively monitoring recruiting, development, engagement, productivity, accountability, retention, and many other workplace initiatives.

How can we use this information?

Gaining all this data is all very well but how we use it and implement it to our advantage is key.  Gaining data on areas which do not benefit our business is a waste of resources, so we must identify and use accordingly. While many companies have the means to record large quantities of data, they are simply unable to process and analyze that information effectively.

You need to be able to translate your data into effective marketing plans, a new advertising strategy, enhance your product development and increase your competitive efficiency.  The end game, is of course, to grow your business and build profitability and HR analytics and getting the employees right is key to this.

HR teams can use data to make better HR decisions, better understand and evaluate the business impact of people, improve the leadership’s decision making in people-related matters, make HR processes and operations more efficient and effective, and improve the overall wellbeing and effectiveness of the company’s, as at the heart of any business, the people are the driving force.

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For more information on how HR Analytics can help your business, please contact us here.


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Sandra Berns

Centric HR was founded by Sandra Berns, a confident and versatile Human Resources and Organisational Development Practitioner with 25 years demonstrable experience and a Fellow of the CIPD. Sandra has both Operational and Strategic HR expertise across Public and Private sectors and has assisted senior teams in meeting challenging workforce objectives in many corporate environments.