Data analytics has become common across many business functions, and when it comes to human resource management HR analytics plays a major role. HR analytics is the application of advanced data mining and business analytics techniques to employees’ data. Sophisticated HR management software offers real-time data analytics that helps you hire, retain, and develop the best talent.
Human resource analytics also called as workforce analytics or talent analytics enables your HR managers to make better decisions based on hardcore data. Analytics helps in predicting retention and offers extensive modeling capabilities for workforce planning.
Workforce analytics enables you to calculate how many employees would retire per year, the type of candidates needed to replace them, and from where those new hires can be recruited. This helps in categorizing and prioritizing action plans that address the potential talent shortage.
In order to improve HR functions, organizations can integrate workforce and financial data to align talent investments with company results. You can proactively develop data-driven insights that can be used to predict business turnover, reduce new hire failure rates, and manage persistent poor performers. HR analytics also enables you to forecast the upcoming workforce management problems and opportunities
Today, HR departments in many organizations are filled with new complexities; in order to manage them they need to transform and streamline processes, centralize employee management, and use the decision power of HR data and analytics. Cloud-based HR software with in-built data analytics provides more effective workforce planning, which is important in a rapidly growing and changing enterprise.