Hiring or recruiting the staff members of a company is the primary job role of human resource (HR) managers. For this reason, they are also called hiring managers or recruiters. But nowadays, other than hiring, they also undertake the task of HR analytics. Read on to get an insight into the importance and features of HR analytics.
What is HR Analytics?
HR analytics refers to the process of collecting and analyzing employee data and applying it to enhance the business outcomes of a company. In technical terms, HR analytics is a vital process that helps companies with the retention of employees and enhancement of the performance level of human resources. Due to its importance, HR analytics finds its place in business management courses.
HR analytics is a specialized course among business management courses. It helps a company determine the following:
- The value and the rate of retention of employees of an organization
- The approximate rate of attrition of a business organization
- The number of employees in a business organization who deserves a promotion
- The turnover rate of the employees of an organization
Why is HR Analytics Important?
HR analytics is one of the prominent business management courses. Its importance stems from its wide range of benefits. HR analytics is important as it ensures the following:
Quality Recruitment
The future of a company depends on its talent. The recruitment of quality talent can help with it. By hiring quality talent, a company can secure both its future and expenses. HR analytics helps the members of a company’s talent acquisition team shortlist profiles of candidates for specific job roles. This simplifies matters for quality recruitment. Due to the importance of quality recruitment, HR analytics is a part of business management courses for HR professionals.
Reduces attrition levels
The employee attrition rate is the rate at which the existing employees of an organization leave it. It can be high in a company due to several reasons. These days’ employees are often seen switching their jobs in short durations. These HR analytics identifies the trends and hidden patterns related to the data of employees to identify the reason for a sudden and high rate of attrition in a business organization. For this reason, HR analytics has its due importance in business management courses.
Helps in building a productive workforce
Just like the five fingers, employees of an organization may differ from one another. They may have different levels of productivity. Thus, the productivity graph cannot remain constant all the time. But, HR analytics helps in concluding approximate productivity by making use of employee-related data. It helps analyze certain key aspects like profits, target achievement, leaves overtime hours, hours worked, and so on. Analyzing these aspects helps gain insight into existing shortcomings and formulate effective strategies to address ongoing problems. HR analysts draw a conclusion to find out whether an employee is actually burdened with overwork or they are simply delaying their assignments, which results in reduced productivity. Such analysis reports help in pulling down ways and strategies to hike employee performance and productivity.
Helps a business organization in earning employee trust
Nowadays, business organizations are keen on investing in aspects that grow the sense of belongingness of employees. One of the things that most business organizations do is invest in employee training programs. Business organizations do not shy away from training supervisors with special business management courses featuring HR analytics that lead to employee satisfaction and provide them with job satisfaction.
Features of HR analytics
What is business strategy? It is the blueprint for the success of a business organization. It revolves around the features of HR analytics which include the following:
- Employee turnover
- Recruitment analytics
- Performance analytics
- Employee engagement analytics
- Corporate culture analysis
When you add up these aspects, it becomes clear why HR analytics is the core component of business management courses.
Final Thoughts
HR analytics come in handy for recruitment professionals in many ways. These include the ones given above. If you haven’t invested in it yet, think about doing it now to grow your business and take it forward based on a data-driven approach.
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