Making Data-Driven Decisions: The 4 Types of HR Analytics

 

In today's data-driven world, making informed decisions based on evidence is no longer a luxury, it's a necessity. This holds true for all aspects of business, including Human Resource Management. But with the vast amount of data generated by HR processes, it can be overwhelming to know where to start.

This is where HR analytics comes in. By applying analytical methods to HR data, organizations can gain valuable insights into their workforce, leading to better decision-making, improved efficiency, and even cost savings.

Here are the four main types of HR analytics and how they can empower HR professionals:

1. Descriptive Analytics: Understanding What Happened

Think of descriptive analytics as the foundation for all other types. It involves summarizing and describing past data to understand what has happened in the organization. This could include metrics like:

·         Employee turnover rate: What percentage of employees leave the organization each year?

·         Time to hire: How long does it take to fill open positions?

·         Cost per hire: What are the expenses associated with recruiting and onboarding new employees?

By analysing this data, HR professionals can identify trends, patterns, and potential areas for improvement.

2. Diagnostic Analytics: Why Did It Happen?

Once you know what happened, the next step is to understand why it happened. Diagnostic analytics involves digging deeper into the data to identify the root causes of trends and patterns.

For example, if the data reveals a high turnover rate among new hires, HR can use diagnostic analytics to identify factors contributing to this, such as a lack of onboarding support or a mismatch between candidate expectations and the job reality.

3. Predictive Analytics: What Might Happen?

Predictive analytics takes HR analytics to the next level by using statistical models to predict future outcomes. The future of work is one of the top priorities for 42% of HR leaders according to Gartner. This allows HR professionals to proactively address potential issues and make informed decisions.

For instance, predictive analytics can help to:

·         Identify employees that may leave based on factors like performance, engagement, and demographics

·         Predict the cost of future recruitment campaigns based on historical data

·         Forecast workforce needs based on business growth plans

4. Prescriptive Analytics: What Should We Do?

Finally, prescriptive analytics goes beyond simply predicting future events. It uses advanced algorithms to make recommendations for specific actions to achieve desired outcomes.

For example, prescriptive analytics can suggest:

·         Targeted interventions to retain high-potential employees

·         Training programs to address skill gaps and improve employee performance

·         Optimizing recruitment strategies to attract and hire the best talent

Equipping Yourself for the Future of HR with MITSDE’s PGDM HRM:

As HR analytics continues to evolve, it's crucial for HR professionals to stay ahead of the curve. This is where topdistance PGDM HR courses like the one offered by MITSDE come into play.

MITSDE’s post graduate diploma in HR is a top-ranked distance learning program designed to equip you with the knowledge and skills you need to thrive in the data-driven world of HR. The program includes dedicated modules on HR analytics, covering topics like:

·         Data collection and analysis techniques

·         Interpretation of HR data

·         Applying HR analytics to different HR functions

Here are just a few reasons why MITSDE offers the best PG diploma human resource management:

Flexible and accessible: 

The distance learning format allows you to pursue your education while managing work and personal commitments.

Industry-relevant curriculum: 

The program is designed to equip you with the latest HR practices and trends, including those related to HR analytics.

Renowned faculty: 

The postgraduate diploma in HR management is led by experienced and qualified faculty with expertise in various HR domains.

Strong industry linkages: 

MITSDE enjoys strong relationships with leading organizations, providing students with potential internship and career development opportunities.

By investing in your education and developing your skills in HR analytics, you can become a valuable asset in today's data-driven business landscape. MITSDE's PG diplomain HR can be your stepping stone to a successful career in the ever-evolving world of HR.