Improving The HR Function: The Role of HR Analytics

Have you ever wondered what it takes to build and retain the best team possible while increasing your profits?

Well, you might be surprised it all comes down to Implementing HR analytics If this is a term you haven’t heard before, you are not alone.

No worries we’ll help you catch up.

HR analytics is becoming increasingly common and very much important in the growth of your organization’s team and overall business.

Let me help put this into perspective for you.

As one who is responsible for finding, attracting, and hiring the best team possible for your organization, it is absolutely crucial for you to ensure that each decision you make is rock solid and backed by the right data.

HR analytics allows HR managers to make informed decisions on Hiring and people management based on data.

It basically entails measuring the impact of HR metrics like time to hire and retention rate on your organization’s business outcome. The data gotten from HR function can be used to improve employee experience, and in turn maximize business performance.

For instance, say an organization has recently experienced employee churn. With HR analytics, the HR manager can help the organization to better understand the impact of employee churn by revealing key details like the number of employees that occupied key positions, their level of competence and skill, how long they had been with the organization, possible factors that led to their exit and what it would cost to replace them. HR analytics can also reveal the impact of the churn on overall business outcomes.

Implementing HR analytics in managing your people can have a profound impact on your organization’s business value and profits.

A recent Deloitte report found that organizations that are using HR analytics appropriately record 82% higher three-year average profits than those who are not using HR analytics strategies and those who are not using them correctly.

Now how do you get started with HR analytics?

For a start, we recommend you focus on key aspects of the HR function like recruitment.

Most organizations do not implement data analytics in carrying out their recruitment or hiring process. Data-driven recruitment can help save your organization stress, time, and resources.

In order to better monitor your recruitment process, you need an applicant tracking system that is good at reporting for hiring purposes and also provides some insights into your people and processes. When data is applied to hiring, HR analytics can help your organization save money, cut down on waste of time, and hire for the right skill.

Research shows that the average time it takes top candidates to find and accept a job is 10 days. With HR analytics your organization can significantly reduce the average time to hire.

The time to hire represents the time between when a candidate indicates interest in a vacancy till the time they eventually accept the offer. When you track this metric, you can uncover pain points in your recruitment process.

Existing pain points in your recruitment funnel usually result in the loss of great candidates. Once you identify these pain points, you would be able to fix it and improve the overall experience that your applicants have.

So in order to improve your average time to hire, you would first need to find out what your average time to hire is by using your Applicant Tracking System (ATS). The recording function on most ATS allows you to do this.  If you don’t have that functionality on your ATS you can use Google’s tool: “Hire by Google”

The next step is to find out which part of the recruitment process takes the longest time. By identifying the parts of your recruitment funnel that delays the hiring process, you can implement tools that will optimize the time. Optimizing key operations in your recruitment funnel will help you save time and increase your overall time to hire.

Another key metric to measure for better recruitment is your sourcing statistics. HR analytics can help your organization identify the right job boards that have proven to be reliable for accessing the best candidates. This way you won’t need to waste unnecessary time exploring multiple job boards or sources when you want to make a hiring decision. By implementing HR analytics, you will be able to track the sources from where your best employees have come from and then turn to those sources when next you are hiring.

HR analytics promises enormous benefits to your organization when it is implemented as a key part of the HR function. There are a host of other metrics that your organization can track in order to improve performance and retain your best talents.


Revenue per employee: This usually indicates the average revenue an employee generates. It is a measure of how efficient an organization is at enabling revenue generation through employees. This is usually measured by dividing the company’s revenue by the total number of employees.

Employee Training Efficiency: Organizations measure employee training in order to ascertain the effectiveness of the training programs and identify areas that needs improvement. In order to measure this metric it is important to analyze several data points including employees test scores, overall performance improvements, and the frequency of upward transition roles by employees within the organization

Human Capital Risk: With HR analytics you can measure several employee-related risks which include the absence of a specific skill to fill a new job role, or the lack of qualified employees to fill a leadership position within your organization, the potential of an employee to leave the job due to some factors like relationship with managers, employee compensation or absence of a clear succession plan within your organization.

A key part of implementing HR analytics is the software that allows you to carry out all the functions we have just described. Your HR analytics solution is absolutely crucial to the success of your Human resource management strategy.

A good HR analytics solution offers ample benefits which include allowing HR teams to answer specific business questions, allowing individuals with little or no technology experience to effectively make use of it, providing cloud-based features which do not require heavy IT integration while still supporting accessibility, offers predictive analytics and data visualization capabilities, significantly streamline processes that reduce costs, reduce attrition and consequently improve your organization’s bottom line.

Every HR manager needs to have a good HR analytics solution in order to better deliver on their roles in these changing times. With task automation, you are freed up to innovate and explore the human aspect of Human resources management without spending precious time tracking mountains of data from multiple sources.

In conclusion, the use of HR analytics solution has been established the world over as a technology that is posed to improve the employee experience and also facilitate improved business outcomes.

Reach out to us at Kedrus Consulting to book a free consultation session where we would reveal to you how to deploy the best HR solution that is suited to your specific business needs.

We can help you build HR solutions to meet your business needs

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