To get started with HR analytics, you need to combine HR data from different systems. Say you want to measure the impact of employee engagement on financial performance. To measure this relationship, you need to combine your annual engagement survey with your performance data. This way you can calculate the impact of engagement on the financial performance of different stores and departments.
Key HR areas will change based on the insights gained from HR analytics. Functions like recruitment, performance management, and learning & development will change.
Imagine that you can calculate the business impact of your learning and development budget! Or imagine that you can predict which new hires will become your highest performers in two years. Or that you can predict which new hires will leave your company in the first year. Having this information will change your hiring & selection procedures and decisions.
If you want to read more about how data can change hiring practices, check out Laszlo Bock’s book ‘Work Rules’. Laszlo Bock was the senior VP of People Operations at Google. In his book, he describes how hiring practices changed at Google after they started to analyze their recruitment data.