Most organizations already have data that is routinely collected, so why the need for a specialized form of analytics? Can HR not simply look at the data they already have?
Unfortunately, raw data on its own cannot actually provide any useful insight. It would be like looking at a large spreadsheet full of numbers and words.
Without organization or direction, the data appears meaningless.
Once organized, compared and analyzed, this raw data provides useful insight.
They can help answer questions like:
- What patterns can be revealed in employee turnover?
- How long does it take to hire employees?
- What amount of investment is needed to get employees up to a fully productive speed?
- Which of our employees are most likely to leave within the year?
- Are learning and development initiatives having an impact on employee performance?
Having data-backed evidence means that organizations can focus on making the necessary improvements and plan for future initiatives.
With the ability to answer important organizational questions without any guesswork, it is not surprising that many businesses using HR analytics are attributing performance improvement to HR initiatives.