How to Begin Your HR Analytics Journey


HR departments are now involved in analyzing HR metrics at more than 90% of enabled organizations, according to a recent employer survey.

That’s great news for HR as a professional group, but if you are a member of the roughly 10% currently outside the HR analytics loop, then you’ve got some work to do to level up. Fortunately, catching up has never been easier.

Companies often say employees are their greatest asset, but, typically, their employees are the part of the business they know the least about. HR can help fill in that void by using data to deeply understand the needs of the workforce.

Indeed, HR analytics can help organizations monitor employee performance and engagement to reduce turnover and build a more productive workforce. But without HR analytics, HR could miss out on identifying potential problem areas, like how a company’s lack of professional development programs may be hurting its talent pipeline.

With that in mind, here are the first things you need to do to get your organization on the path toward HR analytics enlightenment.

The first step is to bring all the different sources of employee data together since employee data can be found anywhere from advanced HR information systems to old-school Excel spreadsheets. Once the data is cleaned and aggregated in a central location, identifying key performance indicators will help to understand how workers’ performance relates to desired business outcomes.

The next step is to create a dashboard that will act as a lens through which to view all your HR data. While the actual layout often depends on the size and industry of an organization, any real-time graphic view of this data will better enable users to uncover insight into the HR analytics that will drive the success of your business. And as analytics is a relatively new field for HR, it’s essential to develop a training program to beef up the analytical capabilities of your team.

Finally, identify a pressing business problem and then use analytics to find the solution. Such issues often include the identification of high-performers, reducing cost-per-hire for new workers, or improving retention of current ones.

While many HR leaders may be intimidated by using data, since, historically, data analysis wasn't part of their role, this ability will ultimately elevate their voice to the highest level of decision-making within any organization.

The SHRM Blog does not accept solicitation for guest posts.

Add new comment

Please enter the text you see in the image below: