Yes! Now HR Department Also Need Analytics

Published by MBA Skool Team, Published on January 11, 2014

We have been hearing that HR has moved far from being a transactional, support function to a business partner. However it seems to be more in words than in spirit. If HR has to become a strategic function and get a spot in the senior leadership team, there has to be more efforts towards affecting business results in a significant way.

Currently HR works in the present-fulfilling current requirements of recruitment, training and retention needs. The maximum it does is pull out past data to study trends through traditional metrics. This data is very nascent in terms of affecting business output. And if HR has to be significant it has to analyze and bring out trends which all lead to greater revenue and ROE of its most critical asset-People. And this can be done by doing what comes best to them-people understanding and analysis. Currently analysis is happening but in fragmented ways. Hence the past and present data is getting tracked and analyzed to some level but is not good enough to predict trends for future. Predicting trends for future can be a real game changer in this volatile environment.


HR has to come of age and first understand the need and then utilize advanced tools to analyze and track. Business buy-in in driving HR values and products can only be achieved if they can see human resource trends and can see that the HR is using these trends for recruitment, talent development and performance management and it is ultimately impacting business revenue.

In most organizations, data on recruitment, training, performance management is tracked on different platforms hence there is no seamless way of linking these data. Human behavior and performance will be a factor of various parameters and hence all these need to analyzed simultaneously to predict. The business has to be shown how absenteeism, engagement, training, recruitment, diversity, compensation methods impact performance to create a partnership and accountability on developing resources for personal and organizational growth.

There are advanced tools like Workday apart from SAP ERP & PeopleSoft software for tracking and analyzing this data in one format. Another concern is also that HR is assumed by business and by HR itself to exist for its soft skills and transactional work rather than for providing hard facts. Hence analytical skills are not taken into account while recruiting an HR. This thought also has to change if we look to create an impact through HR.

Hence HR analytics is the need of the hour to create an edge for the entire HR fraternity to create significance and partnership in business.

This article has been authored by Shruti Rauniyar from SIBM Bangalore

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