Why HR Analytics And Metrics Are The Need Of The Hour In 2020

In the modern world, organizations and businesses realize the workforce’s importance as the company’s most prized possession.

They realize that the people in an organization hold the key to unlocking their potential or bringing it down to its knees.

Today, a company requires the enlistment of good employees, discarding bad employees, and proper management of human resources, including mental peace, peak physical condition, and motivation to work correctly.

Thus, the human resource professional’s job is no longer limited to recruiting employees required for a specific job profile.

Today, the HR department has to deal with a tricky bunch of tasks that include employee recruitment and retention, staffing, salary, employee benefits, training, and employee development.

While looking at all of these numerous issues, it is often difficult to look at the bigger picture.

The Two Forces Of The HR Department


The HR department has two different people, each with their method of approach.

The HR manager monitors administrative tasks such as recruitment, training, development, and benefits of employees. The role entails formulating policies to keep things under control.

In contrast, an hr business partner acts as a consultant to the department managers and tries to formulate strategies that help realize organizational goals.

The HR business partner is also in direct consultation with the organization; thus, they have the leverage to implement a well-planned strategy for the entire organization.

It can often be challenging for the entire HR department to create their policies or strategies. Hence, to make work more manageable, the human resources department uses modern techniques like HR Metrics and Analytics.

What Is HR Analytics?

HR teams gather up data and analyze them to understand the company’s workforce.

The data may include anything from employee engagement to turnover, hiring, onboarding, headcount, compensation, job title and function, and learning and development.

It helps the HR teams understand the workforce, figure out a course of action for the short term, and plan for the long run based on company goals.

Analytics and metrics go hand in hand, and metrics are mostly a precursor for the analytics to draw out the insights.

What Are HR Metrics?

HR metrics are numerical data that provide operational estimates of the effectiveness and efficiency of an organization’s various practices.

They are the leading key performing indicators that control most of how things change within the organization, especially from a human resource standpoint.

The corporate landscape is getting more competitive every day, and finding skilled people and maintaining them is proving to be a challenge.

To find a solution to this problem, you need first to realize the problem, and this is where data and metrics become very useful.

After finding relevant items over a period, you can use the metrics to determine the change and its direction. Later, you can process these metrics through analytics and draw out insights from them.

Why HR Metrics And Analytics Are The Need Of The Hour In 2020

HR analytics can help your organization in the following ways:


One of the more critical job roles in the human resource department is the recruitment of deserved talent. Today, most HR managers are using analytics to get the best individuals to work for the organization.

HR analytics helps HR managers aim for the best workforce by posting job profiles and other specifications in the best way possible.

Hiring Time

Hiring a new person on the job takes some time and has many formal steps such as posting the job, screening applicants, interviewing them, running background checks, and finally signing official paperwork.

As the process extends, a lot of money can get wasted. HR analytics can make your work more comfortable and convenient by looking at the key areas causing time loss. You can then speed the process up.

Employee Onboarding

Another time-consuming process for the HR department is employee onboarding. A new employee needs time to become acquainted with the company before providing any value for the organization.

Data gathering and analytics can be beneficial in the case of numerous names and departments, and applicants.

However, analytics software can help to resolve the situation quickly. It can send an automated text to all the employees, connect them to trainers, and track each employee’s progress.

Retention And Turnover

As time passes, many valuable employees may consider leaving the company to seek for better opportunities. However, it may be due to their feeling unfulfilled or expecting more respect or remuneration from the company.

These turnovers can be expensive since you not only lose a knowledgeable person, but there are chances that they will join your competition.

Analytics can help you look for clues. If people working under a specific manager keep quitting, there may be a lot of work and lesser pay. You can then look into the matter to resolve the problem.

Performance And Development

Performance is another key indicator that you need to monitor in the human resources department.

You can track down the employees’ performance daily through HR analytics and reward or motivate people to develop a healthy working culture.

Diversity and Inclusion

You can also make sure that everybody is appropriately treated in the organization despite their religion, ethnicity, or social standing.

Moreover, analytics can also help you find out the percentage of people in your organization based on various groups.

How HR Metrics Is Helping Analytics Do Its Job

The HR data is first converted to metrics that give numerical validation. After analysis, it helps develop insights that help realize company goals by creating new strategies or policies.

The following metrics help provide key performance indicators that make HR Analytics a lot easier.

  • Headcount: It tells the size of the entire group of people in the organization, broken down into departments and other subgroups.
  • Demography: It plays a crucial role in the employees since people from a similar group usually bond together. The demography can be based on language, location, marital status, race, or gender.
  • Time-To-Hire: It is essential during the recruitment process since it helps to cut down hiring time.
  • Time-To-Productivity: During onboarding, it takes into account how long it takes to prepare someone to do the job themselves.
  • Revenue Per Employee: It equates to the average amount of value generated by an average employee.
  • Employee Performance: This parameter helps to rate employees according to their usefulness.
  • Employee Satisfaction: It puts a score on how satisfied employees are while working for the organization.
  • Training And Development: It weighs the cost of training and development along with the benefits.


Whether you are working as an HR manager or a business partner, you can not do without the technology of analytics and metrics in the modern age.

If you want to get into the HR department, you must realize that it is very competitive. Hence, you need to build the perfect hr business partner resume if you consider applying for t

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