Are Analytics Tools Useful for HR Professionals?

The question is how best to use analytics...

Are you ready for the next transformation in HR? It’s actually no longer a question whether analytics should be used in your Human Resources Department. The only question you should ask is where you can apply it next.

The most important transition I had to make is shifting my mindset. I used to view analytics as time consuming and as an obstacle in my daily tasks. However, I knew I couldn’t ignore it because my competitors were using it.

It took a few annual reviews, long term success stories and passionate analysts to change my mind. And then one day I got it: This can transform my business; but only if I use it to its full potential.

So let’s get you up to speed of what you’re supposed to be doing.

What are Analytics Tools?

In any new field I find background information invaluable. If I wonder why I’m spending so much time on it, facts keep me focused.

An analytics tool is designed to analyze data and draw information from it. You go through the process so you can find ACTIONABLE solutions to challenges or new ways of doing business. The goal is to make the business feature you’re analyzing function better than before.

Analytics Tools in HR

Analytics shows you correlations between aspects so you know you’re spending your time and money in the right places.

You won’t know what to change if you don’t understand the current status quo. Here’s a quick example: If you don’t know whether your employee development program actually benefits your bottom line, sales figures or brand impact, why keep on doing it?

Of course it’s difficult to gauge what to work on since there are so many factors at play. Does an employee’s low productivity relate to his or her work environment or is there something wrong at home?

Analysis such as the feedback you get through Advance Systems’ HR systems uses a range of data to take as many factors into consideration as possible. The resulting clear feedback helps you work with facts instead of opinions or your gut feel only.

It should be noted that there is still much room for improvement in terms of HR analytics. Tools exist that benefit many parts of businesses, but they’ve only touched the surface with HR. Much more can be gauged when optimally analyzing employee data. So keep an eye out in the future for software that can help you grasp the particulars of your HR department even better.

For now, let’s discuss a few important applications of analytics you should start using.

Here your goal will be to:

  • Make better decisions regarding HR related concepts such as salaries or employee development
  • Find the best possible employees
  • Improve the environment for your employees


Analytics: The Key to Success for HR Professionals


Make Better Decisions

Here’s what you’ll do less in future if you apply analytics correctly: Make the same mistakes over and over. A common example is thinking that a certain type of employee will fit into your company easily. Your gut feel may guide you, but what do the facts say?

Through analytics you can see which employees—based on background, skills, personality, interests—are your long term success stories. Now look for similar candidates in the future and your employee turnover rate is sure to go down.

I love applying analytics in our modern society because there are so many sources of data to draw from. The matter above can be improved by using everything from social media data to personal information on employee files. Multiple sources:

  • Give you more options of the type of correlation you’re after
  • Make the analysis outcome clearer


Plan Your Future Employees


Before you hire that next employee, how sure are you that you need him or her? Will he or she be as valuable in a few years’ time?

Remember, you’re functioning in an ever changing environment in terms of technology, the economy and society. You’ll boost your business’ impact in a few years’ time only if you have the right employees for the job at hand.

And you can start writing that success story now.

Analytics uses data to tell you what skills, experience and personalities you’ll need. Analytics can also be used during background checks of applicants and you can use it to plan your employment strategy.

Don’t make impulsive employment decisions in future that could backfire and cost the company money. If you have a clear strategy you’ll have the right people in place to make the most of every opportunity.


Improve Employee Environments

Why did that star employee leave a month ago? Is it an event or a trend?

That’s what analytics helps you clarify.

You can analyze employee retention rates and identify the reasons for it being lower than your KPIs would want it. Now that you know the problem you can start fixing it.

One area you’ll probably have to give attention to is empowering your team.


Enhance the Current Workforce

Most workers want to perform well and better themselves. Often they need your assistance in doing so. But with analytics you can do it in a way the benefits both you and the employee.

Only through analytics can you gauge:

  • Which skills you’ll need in future (mentioned above already)
  • What gaps you need to fill currently to enhance your impact

Now you can align training for employees with the company needs.

Firstly, don’t see training as an expense. When development is based on your needs it turns into an investment.

Secondly you can now partner with your employees in deciding on development focus areas. Find a balance between what the employee wants and what the company needs. Talk about how the development will impact the company as a whole. This greater purpose will be a valuable motivator to drive the individual forward.


So it’s an unequivocal YES! If your business has been struggling your solution could be found with analytics. And when you have a starting point the road ahead will be so much clearer. Enjoy the new journey. welcomes thoughtful comments and the varied opinions of our readers. We are in no way obligated to post or allow comments that our moderators deem inappropriate. We reserve the right to delete comments we perceive as profane, vulgar, threatening, offensive, racially-biased, homophobic, slanderous, hateful or just plain rude. Commenters may not attack or insult other commenters, readers or writers. Commenters who persist in posting inappropriate comments will be banned from commenting on