A guide to HR analytics

Last updated:November 2013

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Editor's note

Human resources is stepping into the spotlight with HR analytics. In years past, one of HR's primary goals was to collect and keep track of employees' personal and professional information, such as payroll, health benefits and performance reviews. Now, the tide of technology has reached HR's shores and is carrying it into deeper waters where it can analyze data to play a more active role in the organization.

It's important to note that HR metrics are not the same as HR analytics. HR managers typically used metrics to measure such data as turnover rates and sick days. With HR analytics, they can gauge employee engagement and whether or not workers have the skills to reach company goals. HR representatives can now talk with business leaders, find out what they need and hire accordingly. HR analytics allows human resources to interpret data, recognize trends or issues, and take proactive steps with different departments to keep the organization running smoothly and profitably.

In this guide, learn more about how HR analytics has pushed human resources into a more active and involved role in organizations' planning and objectives.

1HR analytics and company strategy

If interest in HR analytics is growing, it's because it has delivered results and strengthened the human resources profile within the organization. For instance, one expert says that CFOs are showing more interest in human resources application suites, with some choosing to unify HR analytics with their financial platforms. This recognition of HR analytics and the benefits it brings to an organization's bottom line is giving human resources an integral role in planning and achieving business objectives, as detailed in this section.

2Test your HR analytics know-how