How is Data Analytics Used in Human Resources: Is this a Topic I could Learn Online?

Human resources is a vital part of a company's everyday workings. Whether it's onboarding a new employee, dealing with a serious complaint, or helping an employee understand how their benefits function, it's incredibly important to have an HR department that runs well and is able to help employees. One might not think that data analytics could really help this process. Let's take a look at how data analytics can be used in human resources to better the department.

What are HR Analytics?

HR analytics is a novel topic hardly discussed. It is also referred to as workforce, talent, or people analytics. The HR landscape is experiencing a seismic shift, and most organizations are now embracing a data-driven culture. HR analytics focuses on analyzing problems in an organization using data and allows you to give reasonable answers to various company issues such as:

• The rate of your annual employee turnover
• Regretted losses
• Employees with the highest chances of leaving the company within a given year

Any HR manager can answer the first question without a deep understanding of big data. The second and third question would require you to be knowledgeable in data analytics.

Over the years, HR management has transitioned to a more strategic discipline requiring the team to have a data-driven approach. Analytics allow you to make decisions based on data and not on gut feeling, create a business case for Human Resource interventions, and become more tactical.

Data analytics is a potent tool that can help you understand your engagement levels better. It allows you to improve employee relationships, reduce hiring bias, help in attrition management, and identify factors that enhance performance.

What Metrics are measured by HR Analytics?

Some HR metrics boost the value of an organization. However, the question is; what does the organization need? As an HR manager, you can evaluate the key performance indicators (KPIs) to propose the metrics that may influence operations.

You will be needed to build a case showing why tracking metrics is crucial. Most new openings will require you to have training in data analytics. Some of the roles played by data analytics are as follows:

Relationship Management

As a data analyst in the HR department, you will be required to have the right skills in managing relationships. You will be expected to keep updating the organization on the progress of your analytics project.

Business Acumen

Before analyzing data, you need to know how the analysis will impact the operations of the company. Every analyst needs to be equipped with this skill.

Data Analysis

An HR data analysist is expected to have the basics of data-driven practices. In many organizations, a data analysist is involved in dashboarding and reporting. The data maturity of the organization determines whether information will have to be manually retrieved or automated.

The Biggest Challenges of HR Analytics

Actionable analytics in HR can be tough. Without the clarity of how analyzed data can be used in decision making, it can be tough to tap into the abilities of HR analytics. Companies experience unique challenges internally, but there are some which are faced at a global scale, including:

Multiple Data Sources

Because different tools in HR cater to different functions, some data sources operate in isolation. That could be the learning management system, software, or an applicant tracking system.

Each of these tools creates unique data which becomes challenging to integrate with other sources. The challenge, therefore, is based on how to integrate all the HR systems to communicate with each other.

Poor Skills

The HR department is involved with many technicalities, yet only a few managers have learned and implemented data analytics tools. Most of them would rather rely on intuition than get training in HR analytics.

Organizations can overcome these challenges by utilizing the benefits of HR analytics through the following:

• Data cleansing
• Hiring managers with the right skill set to manage and give accurate data reports
• Data quality
• Data privacy and compliance
• Identifying top HR technologies for proper data tracking
• Tying insight and action to ROI

Requirements in HR Analytics

While many companies need analytics in their HR departments, not many candidates have the required training. For this reason, organizations are now training their employees in data analytics or hiring already trained candidates in that order.

A background in organizational or industrial psychology, statistics, and economics is considered relevant by most organizations. Candidates with these backgrounds can offer a unique set of quantitative skills needed by most firms.

The other must-have skill is MS Excel proficiency and the ability to analyze large data using pivot tables. Ideally, an analyst's data-driven mindset is largely popular today and sought after in management positions.

Are You Ready to Get Started Today?

Are you interested in data analytics and want the education you will need to make a difference in the field? If you want to earn a Bachelor of Science Degree in Computer and Information Science with a Major in Software Development - Data Analytics Track, consider ECPI University. For more information on this exciting opportunity, connect with a helpful admissions advisor today.

It could be the Best Decision You Ever Make!

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