The Ultimate Guide to HR Analytics for Beginners

Indeed, the world is changing at lightning speed. Technology has replaced people. Undoubtedly, Technology is a crucial tool but it is also important to remember that machines still need human control, direction, and oversight. Machines and software are developed and driven by human ingenuity—only the human mind can design, develop, create, and operate the advanced systems we rely on today.

With the abundance of data and technology, we need systems and people to handle it. The human resources (HR)department is like the backbone of any company that generally manages people and resources. It serves as a link between departments and people. However, even the best HR departments need a system and process for the best outcomes. One such process of collecting, analyzing, and recording important data of people and their performance is Human Resources Analytics.

What is HR Analytics?

HR analytics serves as a hope of improving internal business processes that are related to hiring, payrolls, employee performances, employee onboarding, etc.

It is regarded as one of the best ways to use data to understand how well a business is performing it serves as a report card for business. Without proper data and analysis, there is a high chance that the business, unknowingly could be losing money because of processes that just aren’t resonating or working well with its employees. It helps people make appropriate business decisions that are related to hiring, promoting, or firing employees. It is important to identify low-key and high-key performing employees so that they can take the necessary steps, such as laying off, remedies, counseling, or firing. Similarly depending on the firm, similarly, HR analytics is also referred to as, People Analytics, talent analytics, or workforce analytics. It measures a wide range of different types of HR data which is moreover centered on the people and its function.

The Importance of HR Analytics

To begin with, it serves as a hope that businesses could improve internal processes that are related to functions such as payroll, benefits, hiring, employee onboarding, employee performance, and overall employee morale. It is one of the most user-friendly ways to use HR data to understand how well a business is performing. Without proper Human Resource analytics, there is a high chance that a business could unknowingly be losing money due to processes that are not resonating or working well with its employees. Measuring HR data on employee processes provides better insights and enables more effective management of people teams across organizations.

Similarly, proper analytics ensures that decisions are based on facts and evidence rather than just opinions and feelings. Offering legal protection by supporting employee-related decisions with objective data.

Fundamental HR KPIs(Key performing indicators)

Most organized businesses measure the key highlights of HR analytics to keep track of their data. Here are some overviews of those key metrics that make a good starting point for many businesses to launch an HR analytics program.

1. Time to Hire

This metric measures the time duration it takes to fill an open position at the company. To calculate it we need the number of days from posting the job to someone accepting an offer. This gives an overview of how efficient the hiring team is at finding a suitable candidate and moving them through the hiring process.

2. Ratio of revenue per Employee

It assists in measuring the amount of money the business brings in for every employee it has on staff and is paying expenses, such as benefits, and salary. To calculate this divide the company’s total revenue by the total number of employees.

3. Employee Attrition Rates

The Employee Attrition rate meanwhile helps to measure the percentage of people who are not a part of the company. Employee Attrition mainly has two aspects, employees who have left the company and employees who have been fired, both are measured by dividing the number of employees in each category and dividing them by the total number of employees in the organization.

4. Offer Conversion Rate

The offer conversion rate measures how well the hiring team convinces the people who want to take the job. If a large number of candidates decline the offer the hiring process needs to be adjusted to move candidates the hiring process who are more interested in joining the company. It is measured by dividing the number of accepted jobs by the total number of actual offers made.

5. Churn Prevention Rate

The Churn Prevention Rate is one such crucial tool that in fact provides valuable insights into an organization’s ability to maintain its workforce over time. It contracts the turnover rate, which focuses on departures, rather than the retention rate highlights the organization’s success in keeping talent engaged and committed.

Transforming Business with Data-Driven HR Analytics

HR professionals and managers use Human resource analytics in many ways to improve business. The information provides a better understanding to serve people, helping to maintain the best performers. Moreover, it provides an extra edge for the top performers not being poached by other competitors in the market. Moreover, it’s important to keep employees satisfied or they start seeking other opportunities.HR analytics helps clean up the process related to people and the role they perform which in return helps to save time and cost.

Eg-It is important to have an effective hiring process to choose the best candidate and train them. If this decision is taken incorrectly, it would not only waste time training the employee but also lead to financial losses.

One of the leading institutes providing the HR analytics course is Henry Harvin

HR Analytics Certification Training by Henry Harvin

Henry Harvin offers an instructor-led HR Analytics Course designed and focused on applying HR analytics and its techniques in the R field. Important topics like Recruitment ,People Analytics, Performance Analytics, and Talent Analytics are covered in the course. This course not only handholds the students from the fundamentals of R Programming, R syntax, variables, and operators but also helps in building data analytics models to perform specific analysis

Who can apply?

Professionals working in any domain.
Students from backgrounds like BBA, MBA, Bcom, etc
IT and non-IT professionals who want to enhance their skills.
Individuals aspiring to get more exposure in the corporate world.

What do the courses offer?

Different Aspects of Data Collection
Data Measurement & Analysis and its best practices.
Objectives of Human Resources
Web Portals, Creating Reports and Charts
PMS System and its designing

Reasons to learn HR analytics.

To begin with, it is one of the skills that is in demand.
The curriculum designed by experts
It brings in lots of learning Flexibility.
It gives opportunities to network with people.
Helps to practically use the application.

Conclusion

HR analytics provide a deep insight into business as compared to other data metrics. It is a deep understanding of how employees are performing and its impact on business. Effective HR analytics in fact is a tool that helps to identify how the hiring process is going or how you can improve overall team performance and morale.