In the same way that analytics has revolutionized marketing, HR is being transformed by analytics too. It enables HR to:
- Make better decisions using data
- Create a business case for HR interventions
- Test the effectiveness of these interventions
- Move from an operational partner to a tactical, or even strategic partner
The majority of HR departments just record, and store employee data. This doesn’t suffice in today’s data-driven economy.
Simply keeping records is often insufficient to add any strategic value. In the words of Carly Fiorina: “The goal is to turn data into information and information into insight”. This also applies to HR.
Doing this enables HR to become more involved in decision-making on a strategic level. The graphic below shows how this works in practice.