Things You Didn't Know About How HR Analytics Works
Agus Setiawan

PhD candidate and result-oriented Director with 25 years experience with involvement in all levels of Business Strategy, Sales and Marketing, Managing Project and Product Development. Aside of managing a company, he is also the best corporate trainer and public speaker in seminar and conference.

Things You Didn't Know About How HR Analytics Works

In today's digital era, it is essential for businesses to routinely collect the data. HR analytics is the process of collecting and analyzing Human Resource (HR) data in order to improve an organization’s workforce performance. The process can also be referred to as talent analytics, people analytics, or even workforce analytics. Further, HR Analytics is made up of several components that feed into each other, namely.

Collecting data

Collecting data is the first vital component of HR analytics. The data needs to be easily obtainable and capable of being integrated into a reporting system. The system that collects the data also needs to be able to aggregate it, meaning that it should offer the ability to sort and organize the data for future analysis.


At the measurement stage, the data begins a process of continuous measurement and comparison, also known as HR metrics. The process cannot rely on a single snapshot of data, but instead requires a continuous feed of data over time.


The analytical stage reviews the results from metric reporting to identify trends and patterns that may have an organizational impact. There are different analytical methods used, depending on the outcome desired. These include: descriptive analytics, prescriptive analytics, and predictive analytics.


The final step is to apply insight to organizational decisions. Once metrics are analyzed, the findings are used as actionable insight for organizational decision-making.


By understanding about how HR Analytics works, it will be beneficial to help you understand what is currently happening and what is required to keep the business operations running smoothly, which could improve overall organizational efficiency and productivity.

Khan, S., & Tang, J. (2016). The Paradox of Human Resource Analytics: Being Mindful of Employees. Journal Of General Management, 42(2), 57-66. doi: 10.1177/030630701704200205.
(2021). Retrieved 5 October 2021, from

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