You can imagine that HR data analytics holds enormous value for an organization. These examples are only the beginning. Indeed, analytics enables companies to measure the business impact of people policies.
By applying complex statistical analyses, HR can predict the future of the workforce. This enables managers to measure the financial impact of Human Resource practices. To read more about the tools used for these analyses, check our overview on the top HR analytics tools.
Measuring the impact of HR on bottom-line performance is the “holy grail” of HR data analytics (Lawler III, Levenson & Boudreau, 2004). This is often done by calculating a Return on Investment (ROI). It is the most powerful way for HR to increase its strategic influence.