Areas of application of HR analytics

Using data in human resources

From the number of applicants to the reason for dismissal: HR departments today have more data than ever before. This is important data that can help the entire company move forward. To do this, they must be properly analyzed and concrete conclusions must be drawn about actions and measures from these results.

<a href="https://www.taod.de/services/strategy-consulting" data-webtrackingID="blog_content_link" >From job postings, applicant management and onboarding to personnel administration and payroll accounting, everything should follow a specific strategy.</a> But strategy development is difficult if the current position cannot be identified. After all, it is possible for HR departments to overcome exactly this challenge with the help of HR analytics.

Human resources has developed from an operational discipline to a strategic discipline in recent years. As long as personnel decisions are only made on the basis of gut feeling, it is becoming increasingly difficult for employees to understand and accept the decisions and strategies. By using HR analytics, you no longer have to rely on gut feeling. With <a href="https://www.taod.de/services/bi-und-data-analytics-consulting" data-webtrackingID="blog_content_link" >targeted analysis,</a> HR professionals can make data-driven decisions. In addition, the analysis helps to review and question the effectiveness of personnel policies and various measures.

Will there soon be no more HR department?

But On the contrary, it's about creating the right mix of gut feeling and analytics. Although people remain decisive with their gut instinct and expertise, HR analytics put them in a better decision-making position and can also refute this on the basis of neutral data. This enables HR managers to design predictions and scenarios in order to make fact-based decisions. The aim should therefore be to make a change from an administrator to an active designer.

Areas of application of HR analytics

Optimize recruiting

Recruiting used to be relatively easy. But demographic change and the shortage of skilled workers mean that it is becoming increasingly difficult to acquire competent employees. In the past, it was enough to create a job advertisement, which was then responded to by hundreds of applicants. Today, HR managers must specifically approach specialists and present themselves in order to attract them to their company. First of all, HR analytics enables you to discover specialists and talents in order to be one of the first to advertise them.

Retention of employees

Reasons for termination should be analysed to counteract future cancellations. This ties employees to the company in the long term and saves costs that would have been incurred in acquiring new employees. If a company manages to retain an employee in the long term, it can analyse past data and develop targeted strategies.

HR analytics is also used in many other areas

• Behavior prediction
• employee satisfaction
• Staff culture
• Workforce profiles

Get out of the silo

HR is always perceived as a silo in a company. Sentences such as: “They don't know what we need.” or “They don't know our business.” are unfortunately not uncommon. Through HR analytics, HR understands the core business and is specifically involved in creating a corporate strategy. At least when data from other areas of the company, overarching corporate goals and even public data are included in the analysis.

Building on this, there is a focus that in HR analytics means that no data is subjectively evaluated. The company and its employees are analysed in the entire context. The goal is not to use data in any form at any price. Instead, the goal should be to answer questions that the HR department is asking itself anyway with the help of data analysis.

Little digitization in HR departments

Unfortunately, HR is at the low end of the bar when it comes to digitization. For years, it was not necessary to react dynamically to constantly changing circumstances. The awareness and importance of digitization, with all its consequences, has so far only reached a few departments of companies.

The market is changing day by day and demands more and more from companies. The chronic shortage of skilled workers means that companies lose their most important employees and are therefore no longer competitive. Social media channels make it easier for recruiting companies to recognize and poach potential employees. HR analytics can positively change this situation. HR managers should understand the company in the overall context of the market and also make decisions from this perspective.

The conclusion about HR analytics

No question about it: The personnel factor is one of the most complex areas of action in a company today. It is primarily the skills and commitment of HR managers and employees that turn competency advantages into a competitive advantage. That is exactly why HR analytics is experiencing a major upsurge. An in-depth digital look at what is seemingly already known helps to better understand the interrelationships. The digital transformation is in full swing.

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