Quick Actions
Click here for audio content

How HR Analytics Can Bring More Sense to Your Business Decisions

Oct 01, 2019


  • EDITORIAL TEAM Talent Management Institute
    facebook Linkedin twitter

Global HR Analytics Market Report 2024 is growing at a CAGR of 13.6 percent and will reach USD 3.9 Billion by 2025. According to LinkedIn, the global HR Analytics market size is USD million in 2024 from USD 2338.1 million in 2024, with a change between 2024 and 2024. The global HR Analytics market size will reach USD 4933 million in 2031, growing at a CAGR of 11.3 percent over the analysis period. The United States HR Analytics market is expected at value of USD million in 2024 and grow during review period. China constitutes market for the global HR Analytics market, reaching USD million by the year 2031. As for the Europe HR Analytics landscape, Germany is projected to reach USD million by 2031 trailing over the forecast period. In APAC, the growth rates of other notable markets (Japan and South Korea) are projected for the next 5-year period. Global main HR Analytics players cover IBM Corporation, MicroStrategy Incorporated, Oracle, and SAP SE, etc.

HR Analytics is Not People Analytics or Workforce Analytics:

Any technology’s optimum use begins with a clear understanding of its functions and benefits, not to mention, its core purpose. Though HRs have been increasingly using the term HR analytics, there is a striking ambiguity in their understanding of it. They have been using the terms HR analytics, people analytics and workforce analytics interchangeably. The three, however, differ remarkably in their applications. While HR analytics is used to manage internal employees and to measure time to hire, training expenses, etc. people analytics is used for a larger umbrella of operations i.e. to manage both internal and external stakeholders. Workforce analytics is used to manage the entire gamut of the workforce (internal customers, gig workforce, consultants, freelancers and all).

Given the scope and the relevance of it, HR analytics can be the most vital tool not only for the HRs but also for the managers who can furnish exclusive and strategic insights to the C-suite and aid their decision-making.

How HR Analytics is Remodeling the HR function?

HR analytics paves a roadmap for the talent journey. It improves hiring efficiency by at least 30%. Talent managers can sift through thousands of CVs and create a concrete base for the first-rate talent. Because the decisions are data-backed so they are unlikely to go biased or redundant. Hence, it significantly cuts the costs associated with bad hires. With better insights into the cultural environment, technological environment and physical environment, HRs can markedly improve the employee experience. They also can:

  • Recognize the pattern of high performing employees and accordingly modify their employee hiring and retention strategy.
  • Draw parallels between the prospective hire and the best performers.
  • Pinpoint the departments with maximum attrition and the potential reasons for those attritions.
  • Identify activities that have maximum influence on employee engagement and divert investments accordingly.
  • Improve operational efficiency and profits.
  • Standardize systems and process across departments.

Common Metrics

Brad Orluk, strategic alliances manager at Nintex, a workflow automation provider said: “HR groups can now capture the metrics needed to understand how their employees engage with certain content and tools, and more importantly, why”. These metrics pave the way:

  • Revenue per employee: It is calculated by spreading the organizations’ total revenue over the total number of employees. Revenue per employee indicates the average revenue each employee generates.
  • Training efficiency: Calculated by measuring performance improvements, test scores and change in employee roles post-training.
  • Turnover rate (both voluntary and involuntary): Voluntary turnover rates are calculated by dividing the number of employees who left voluntarily by the total number of employees. Involuntary turnover rates are calculated by dividing the total number of employees who were terminated from their positions by the total number of employee in the organization.

While C-suite may not be keen in knowing the voluntary turnovers, they’ll surely be interested in knowing how many of these were functioning in strategic positions or were exceptionally skilled. And, how long they stayed in the organization and the reasons for their move, the cost of their replacement and its impact on the overall organizational performance.

  • Time to hire and time to fill: Time to hire is the number of days passed between the first employee contact and the offer acceptance. Time to fill is the time elapsed between floating a vacancy and hiring someone to fill that position.
  • Absenteeism: It is calculated by dividing the number of working days missed by the total number of workdays.
  • Offer acceptance rate: The number of job offers accepted divided by the total number of job offers made.
  • Training expenses per employee: Training expense per employee is calculated by dividing the total training expenses by the number of employees who received training.
  • Human capital risks: Absence of specific skill, absence of employees to fill leadership roles, no clear succession plan, probability of an employee to leave the job based on compensation, relationship with the reporting manager and all.

How to Lay Your HR Analytics Plan?

To set up a sustainable and fully functional data department within your organization, you will need:

  • Chief Data Officer: CDO should establish the enterprise data policy and governance plan and identify the suitable tools and technology. She should also lay the future strategy and communication plan.
  • Data Scientists: Data Scientists create logic that facilitates varied data solutions. These professionals derive the perfect synergy of algorithms, AI, machine learning and predictive modeling and analysis.
  • Analytics Specialist: These professionals combine real-time data from several different sources and try to derive insights from it.
  • Data Management professionals: These professionals maintain a conducive environment for the smooth functioning of data operations.

Parting Two Cents:

HR Analytics is a must for organizations. If your company and its leadership team haven’t bought in HR analytics and are continuing with their conventional processes, your organization is likely to reach a bottleneck soon.

“Human resource programs no longer need to be based on “soft” reasoning but should be as analytical and as data driven as any other management discipline,” says Chris Argyris, Management Theorist & Professor Emeritus at Harvard Business School.

Most prominent use of HR analytics is projected in the Banking, Financial Services and Insurance (BFSI) vertical. Legal companies are also quick to adopt HR analytics. Construction, manufacturing and recreation and travel are lagging behind but are expected to pick the pace soon.

Data transformed marketing, and now it is set to transform human resources. Are you ready?

Follow Us!


CredBadge™ is a proprietary, secure, digital badging platform that provides for seamless authentication and verification of credentials across digital media worldwide.

CredBadge™ powered credentials ensure that professionals can showcase and verify their qualifications and credentials across all digital platforms, and at any time, across the planet.


Verify A Credential

Please enter the License Number/Unique Credential Code of the certificant. Results will be displayed if the person holds an active credential from TMI.