Everything You Need To Know About HR Analytics Tool

What is HR Analytics?

The application that allows management to model & analyzes the factors that are related to employees is known as HR analytics. HR analytics is also known as people analytics, talent analytics & workforce analytics.


HR analytics tool allows management to manage, attract & retain employees based on the data, which in turn increases the Return on Investment also called ROI. Using a tool like this helps the management of an organisation to create a better environment within the workplace & increase the productivity of employees. Using this on the bottom line for the organisation can definitely yields high effects.

Here are the things that allow management to gather data points:

  • Surveys for employees
  • Telemetric Data
  • Records of employee attendance
  • 360 reviews
  • History of Employee Promotions
  • Work history of Employees
  • Statistic data
  • Temperament data
  • Recruitment
  • Database of employees


Human resource leaders need to line up the HR data and the steps they took for the goals of the organisation. An example, in order to gather more ideas that can be used to build software, a tech company might collaborate with different departments of the organisation. The management can take steps like events within the company, tools and challenges for the employees in order to achieve this goal. Once these steps are implemented, HR management can use the HR analytics tool to find relativity between these steps and the goals that the company implemented.


With the help of HR Analytics Tool, you can collect all the data & reports that will help the management to feed that data into different algorithms & tools in order to have a better understanding of the results. The team needs to carry out a process that should always aim towards continuous improvements. This process should include:


  • Analysis of Benchmarks
  • Gathering the Data
  • Cleaning the Data
  • Analysis
  • Evaluating Goals
  • Testing new ideas consistently
  • Execution of plans
  • Streamline process

What Are The Biggest Challenges Of HR Analytics?

Having just the HR Analytics tools is not enough, there are a lot of challenges that the organisation needs to overcome in order to achieve the desired results.

  • Finding the right people with the right skills to manage the data & generate reports.
  • Cleaning the data
  • Managing the quality of the data
  • Understanding which data is important
  • Privacy of the data
  • Proving its worth to executive leadership
  • Bind actions into Return on Investment
  • Finding the best HR software


What Are The Real Benefits Of Implementing HR Analytics Tool In An Organisation?

As we move forward organisations are becoming more structured and have employee data that is easily accessible to them, they can reduce the time it takes to organise all the process and the money it takes to hire employees into the company. This helps create a productive workforce. It’s easy to understand that not every organisation at the moment is using the HR analytics tool, but the ones that have implemented this into their organisation have seen a lot of benefits. 

These benefits include:

  • Hiring Costs are reduced significantly
  • Organisations have better employee retention
  • Having a Better process for training & review
  • Consistent management better communication


Analytics in an organisation is not a new concept though, companies have been analysing different processes for a long time. But over the years, the meaning of analytics in an organisation has changed. Right now, analytics simply refers to the collection of digital data that allows organisations to gather better insights about individual fields of their company like marketing or sales. If a business can have all this information to analyze at their hand, they can easily make better and effective solutions.


A great example would be a marketing team using google analytics. Using an analytics tool like that can help the marketing team to easily find individual parts of their website that are performing better compared to other. Not just that, they can also find out how much visitors they get every day, on each page & from what part of the continent they are getting the traffic. Using a tool like that can help organisations manage their business in a way that should help them gather more customers and leads.

Future Of HR Analytics

The future looks bright for HR tools as smarter organisation are moving towards implementing these tools into their respective functions which is a great step towards goals like employee retention. Having data analysis is a great feature since you can’t rely on your gut anymore, but a bigger challenge is figuring out how you can sell these benefits to executive-level managers in an organisation.