Data-driven HR: Metrics vs Analysis vs Analytics and their Importance in Strategic Human Resource Management.

Data has become an essential part of every organisation, and every department – from sales and marketing to operations and HR – runs on it. The term ‘data-driven HR’ continues to drive modern HR and how HR teams interact with people and organisations. This attests to the reason why research by Deloitte (Deloitte’s 2023 Global Human Capital Trends) suggests how data serves as an important human capital trend for modern organisations.

Data for HP professionals

HR professionals have a vast amount of data at their fingertips and can use it to run an organisation efficiently. They may range from data gathered from Applicant Tracking Systems (ATS) to performance management system (PMS) programs, learning management systems (LMS), workplace issue cases, and job architecture. All of these are helpful in the people-analytics efforts of HR professionals.

Let’s quickly differentiate between HR metrics, analytics, and analysis. HR metrics are key figures organisations can use to track their human capital and measure the effectiveness of their HR initiatives. These metrics are then used in HR analytics. Such key figures include turnover, cost-per-hire, time-to-hire, and absenteeism. For instance, a firm with a high employee turnover is simply not operating at an optimal production level.

Therefore, through these metrics, organizations can figure out the effectiveness or otherwise of their people strategy as well as what trends they should expect in the future. In the example above, addressing the turnover challenge requires HR professionals to investigate the possible causes. Data obtained from the investigation will provide valuable insight into how they can minimise the rate, which can also help to increase organisational revenue and productivity.

Data-driven HR: Analytics vs Analysis

HR analytics and analysis are similar in nature. One achieves its purpose with the aid of the other. At the stage of analysis, collected data is interpreted and analysed using analytical tools to generate actionable insights. In light of this, HR analytics refers to the process of HR data analysis to enhance an organisation’s workforce performance. It is also known as talent analytics, people analytics, or workforce analytics. The procedure frequently includes going over the metrics reporting outcomes and achieving patterns upon patterns of impact-driving insights.

In the case of a turnover, for instance, a typical HR analytics process will involve the collection and analysis of data on possible turnover trends and patterns as well as data on employee behaviour to create a predictive model that will help in improving the work environment and flag employees who tend to fall in any of the identified patterns.

Human resources professionals specialise in understanding human behaviour and how it fits into organisations. HR managers will realise they need to board the data-driven world’s moving train to stay ahead of the competition as a result of the glut of data and interventions like data analytics. Big data isn’t a future vision any longer; rather, it has become today’s reality – and it has come to stay.

Tracking Metrics

The strategic management of human resources is a critical component of an organisation’s success. HR executives with advanced education such as a Master’s in Human Resource Management or a Master’s in Human Resources are better equipped to handle the data-driven nature of modern HR. Human resource positions require HR skills that are more advanced than ever before. The traditional way of tracking metrics is through the use of spreadsheets. However, this has proven ineffective, considering the astronomical growth and increased data pertaining to organizations and HR practices.

Emerging technologies such as predictive analytics and artificial intelligence have been adopted by tech-inclined firms to understand employee behaviour as well as improve their experience. Still, in most cases, they have not been able to capture the emotional aspects of employees effectively. In this case, human interaction with such employees will suffice – and HR managers are at the forefront of understanding factors that drive engagement and the most productive workplaces so they can make informed decisions.

Conclusion

In conclusion, data-driven HR is not just a buzzword. It has become a crucial aspect of modern HR management, and its importance will only continue to grow as more organisations embrace digital transformation. As discussed in this article, HR professionals need to have the necessary skills to collect, analyze and interpret data to gain insights into their workforce’s performance and drive organizational success. Strategic management of human resources is also essential to ensure that the HR initiatives align with the organisation’s overall business goals.

If you’re interested in enhancing your career in HR, we recommend you acquire the necessary skills, knowledge, and attributes for that success. A Master’s in Human Resource Management can equip you with the HR skills needed for various HR positions, including HR executive roles. Check out our site on Executive Master’s in Human Resources Management to learn more about the double qualification and its benefits.

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References

https://hr.economictimes.indiatimes.com/tag/human+capital

https://www.bamboohr.com/resources/infographics/what-your-executive-team-wants-from-hr-reports/