HR Analytics is the study of gathering, organizing, and analyzing the data related to HR functions like recruitment, talent management, engagement performance, and retention to ensure better decision making in all these areas. By using various types of HR software and technologies, HR departments are creating a large amount of data every day. However, the objective of HR Analytics is to make sense of this data and turn into valuable insight. Analytics in HR can help the hiring needs of an organization.
HR analytics help to predict the changes in organization and act accordingly in the future. It helps in selecting intelligent candidates that help in getting better Returns on Investment(ROI). This will make the recruiting process cost-effective. It helps in shortlisting various candidates who have applied for the job openings available which in turn put them in predefined fields. This helps in diversifying the workforce. HR Analytics helps the professionals to plan their future by finding the skill gap in Advance. They also help in making realistic estimates such as cost per higher budgets etc.
Analytics is an essential tool in HR to make better HR decisions. It not only improves HR performance but also provides a better understanding of what motivates the employee to work efficiently and effectively and how the culture within the organization affects employee’s performance.
The vital benefit of HR Analytics is employee retention. It helps in identifying the departments suffering from maximum attrition and the reason causing it. Recruitment is a complex process. So, choosing analytics for the recruitment process should not only a viable option but also a necessary action.
It is important to capture data in each phase of the recruitment process.first, one must look at the reach of their recruitment process. Next is where the recruiters need to look at the statistics derived from the actions of the job seekers performed on the site. Next is the application phase where data needs to be examined regarding the number of applications received for a job and the kind of applications received in terms of quality and relevance. The final phase of recruitment is to hire where we can observe which candidate application accepts the offer and ultimately got hired.
The benefits of Analytics are not a hidden factor anymore. If the recruitment is done effectively with proper data collection, it will be beneficial for the overall recruitment process.