Human resources a people centric function. But it is more than just limited to a supportive role for employees as well as writing job descriptions and onboarding new hires. Modern HR teams leveraging the latest cloud HR technology should align with the broader strategic goals of the business and play a role in achieving positive outcomes. As a result, HR analytics have an important role to play.
But how can an HR professional prove the importance of HR to the bottom line? When used strategically, analytics can transform how HR operates and gives the team insights to actively and meaningfully contribute to the organisation’s bottom line.
What Is HR Analytics?
HR analytics is a strategy for using insights to understand how employees are contributing to the success of the business. It typically shows how HR intiatives are contributing to revenue, minimising expenses, mitigating risks, and executing strategic plans.
HR metrics and analytics focuses primarily on the HR function and is not exactly interchangeable with people analytics or workforce analytics.
What is the difference between HR Analytics, People Analytics, and Workforce Analytics?
Human Resources analytics, people analytics, and workforce analytics. Are these terms interchangeable? No, not really. This is because there are slight differences between each of these terms that you should be aware of.
HR analytics: Human Resources analytics revolve around HR as a business function.
People analytics: People analytics focus on people in general. It can encompass any group of individuals working for the business, but also external people such as customers.
Workforce analytics: Workforce analytics focus specifically on employees of a business.
IT can be hard to tell the difference between them, right? It is true that workforce analytics metrics and human resources analytics metrics may overlap, which is why the two terms are often interchanged.
How does analytics in HR drive business value ?
There is an emerging trend in human resources that looks at replicating the importance of customer experience in building business value, and applying that employee experience. So basically, businesses spend a ton of time trying to perfect customer experience to drive growth. But what about the employees of the business. Will creating an excellent experience for them help drive business growth too? Logic and reality align and the answer is a resounding yes. As a result, the employee performance and the employee experience can be used to maximise business outcomes by using human resources data and analytics.