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When we talk about analytics, it’s not just about numbers but rather creating meaning behind the figures to tell a story that will enable business outcomes. People often measure things thinking they’re “doing analytics”, when in reality, without critical analysis or insight, all they’re doing is measurement. After working in HR management roles for 14 years, I have seen first-hand the effect of using analytics effectively and how it can be used to bring a business perspective to HR. ‘Time to hire’ and ‘staff turnover’ metrics have been around a long time, but there are others that can be used to drive change. How we attract, train and retain staff has a major impact on business performance, but are we doing enough in the way of statistical analysis? Sure, there is no ‘one size fits all’ but HR analytics can definitely help.

How HR Analytics can Help

Setting Up the Function

From my experience in the HR industry, it is essential to not only foster people that are great at deciphering the data, but also involve those who have the influencing skills to drive change. To work towards better outcomes, organisations can set up the analytics function in one of two ways:

Build Capability within the HR Team

Building the analytics function within the HR team itself means having a nimble department, ready to tackle any immediate issues that arise. Although generally, HR leaders will be on hand to influence key decision makers, you’ll need to develop someone internally with an analytical background or mindset to help with the number crunching.

Develop Relationships with Other Departments

It’s also common for HR teams to develop relationships and borrow skills from other departments. It might be working with Finance (who are natural number crunchers!) or building rapport with IT to extract data in an agile way, doing it this way means working collaboratively with the whole organisation to fully realise the benefits of analytics in HR. One drawback here may be time limits on using the resources of other departments, as how much time they can give you will depend on their own capacity (after all, they do have their own tasks). However, if business leaders are on board with the importance of HR analytics, they too will encourage active collaboration.

Summary

Organisations need to build for the future and talent planning is a big part of that. With HR teams having to do analytics more now, taking it to the next level is key, moving beyond the limits of data collection and measurement to make a true impact. I’d love to hear your views on analytics in HR – to discuss it further or for HR recruitment advice, get in touch with me today.