written by
Dr. Damodar Rai

How to Get Started with HR Analytics in Your Organisation

HR Analytics 5 min read

HR analytics is proving to be a boon to the organizations. Hence, how to get started for it in any organization is a matter of great significance.

For having a better understanding of this blog, please go through the following blog, which, we have published earlier.

HR Analytics :Meaning And Importance

1.0 Contents of this blog

We will discuss the following , in this blog.

  • Why do you need HR analytics in your organization?
  • Features of a good HR analytics system
  • Three questions which you should ask before considering HR analytics
  • How to get started for HR analytics?

2.0 Why do you need HR analytics system in your organization?

The author furnishes below some credible reasons , as to why do you need to have an adequately designed HR analytics system in your organization.

2.1 Avoid getting caught off guard with respect to new emerging necessities of your organization

HR analytics helps us to understand what is currently happening , and what we are required to do in future, to keep the business afloat. Strengthening the potentially good aspects and mitigating the weak spots , is the key to continuous improvement in any business. It helps us in this mission.

2.2 Choosing right people and future leaders

Predictive analysis helps us in choosing the right people and also identifying the future leaders.

2.3 Improving retention

HR analytics will help in understanding why some employees leave and why others prefer to stay back.

2.4 A dominant HR division influencing the business goals of the organizations

HR Analytics may help human resource professionals to play a dominant role in influencing the business of the organization. They may accomplish it by the following.

- Conveying the reasons for the turnover rate of the employees in the organization

- Coming up with new ways to improve Return on Investment on employees

2.5 Helping top management in making better decisions

HR Analytics may help top management by providing better insights of business. This in turn , may aid in making better decisions.

3.0 Features of a good HR analytics system

A good HR analytics system should have the following features:

- It should be capable of visual presentation of huge amount of HR data. Hence, it must have an advanced visualization software attached to the analytics system

- There should be provision for four kinds of Analytics, viz., Descriptive, Diagnostic, Predictive and Prescriptive ,in the system.

However, it is the opinion of the author that having predictive analytics is the most important.

- It should also include machine Learning technology and a robust tool for statistical analysis.

- The system should be easily understandable by the common employee

- It should help in meeting business needs of the organization, for which we are planning to procure it.

4.0 Three questions you should ask to yourself, before choosing or considering HR analytics for your organization

Photographer: Jon Tyson | Source: Unsplash

You must ask following three questions to yourself, before considering or choosing HR analytics for your organisation.

- Why do you want HR Analytics ?

- What do you want in HR Analytics ?

- How do you want to implement HR Analytics ?

An answer to these three questions may help you to assess the HR analytics capabilities of your organization.

4.1 Why do you want HR Analytics?


If you have an organization with a large number of employees, it may be difficult to handle big HR data. In that case, HR analytics may help you in data-drive decisions to attract, manage and retain employees, which includes improving the Return On Investment.

With conventional methods of data analysis, this is difficult to achieve.
For small and medium sized organizations also, HR analytics is equally useful. Some of the ways by which it may help them are as follows:

-Measurement of effectiveness of their learning & development programs

-Identification of trends in their workplace and migration of employees

-Improving business strategies through optimizing recruitment methodology, employee turnover and retention

- Boosting the experience of employees

4.2 What do you want in HR Analytics ?


The answer to this question will define the specific requirements of your organization for HR analytics.
We must bear it in mind that HR analytics, which focuses on assessing only HR functions through score-cards have only a moderate impact on business outcomes. However, predictive and prescriptive analytical tools help immensely as they focus on results.

4.3 How do you want to implement HR Analytics?


Answer to this question, conveys about the strategy you should adopt to make it happen in your organization. The following important pointers may come to your rescue:

- Information-rich decisions may help you in a better way than information-poor decisions. Hence, try to gather and cleanse data as much as possible.

- Appropriate selection of technology for HR analytics, so that it is able to turn information into actionable insights,

HR Analytics visualization
Photographer: Carlos Muza | Source: Unsplash

5.0 How to get started with HR analytics in your organization?


Author suggests the following eight steps to initiate the process of HR analytics in your organization.

5.1 Familiarize yourself with HR analytics and try to know what is what.

This may consist of the following:

-Reading books, papers and journals on HR analytics

-Networking with experts

-Searching for vendors and start interacting with them

5.2 Digitization of data of HR department and also the organization’s data


Digital transformation of HR functions and also the entire organization , is the first pre-requisite, before we start the process of HR analytics.

5.3 Clearance from the legal department regarding handling of data

We should also try to ensure , that we adequately address data privacy and security.

Also, we should not violate the relevant laws prevalent in the region .

5.4 Hold a HR analytics seminar before its implementation


We may conduct a seminar among the employees and also HR professionals , within the company, to stress the need for implementing an HR Analytics system. This, we may do, with a view to achieve the following:

-Creating an awareness among the workforce about the different facets of the new system

-The above step may increase the buy-in for the project from the employees

- We may also seek the the opinion of employees and incorporate it into the execution of the project

-Such a meeting may also highlight possible red flags or potential obstacles to the implementation of the project

5.5 Freeze the requirements of the organization after identifying the business needs


In order to do this, tips given in section 2, 3 and 4 of this blog , may prove to be beneficial.

5.6 Build the capability and arrange for training


Based on the above, the necessary HR analytics technologies and software , we may try to procure. We may also arrange for the required training of the personnel.

5.7 Put the HR Analytics into practice


The best proposition will be, to give it a 100 days trial , to identify the strengths and weaknesses of the system. We may incorporate necessary corrections, if any, after getting the feedback of 100 days trial.

5.8 Continue to improve the system


Continuous monitoring of the system at different levels to improve the processes is a desirable step

If you are looking to upgrade your skills in HR Analytics, you might want to consider the certification in HR Analytics by CHRMP. To learn more click here.

HR Analytics