HR Analytics

What is HR analytics?

HR analytics is the process of tracking HR metrics and using them to improve business performance. HR metrics, or Human Resources metrics, are Key Performance Indicators (KPIs) that quantify how well a company is optimizing their human capital. HR analytics provides actionable data to inform decisions.

Businesses can use HR analytics for all workforce management functions including hiring, compensation, training, engagement and retention.

Common HR analytics include:

What are the benefits of using HR analytics?

Using a scientific process to make business decisions is a best practice used by successful companies. Companies can grow faster and more effectively capitalize on business opportunities by using HR analytics.

Using HR analytics to improve even one aspect of workforce management can set off a chain reaction of benefits. For example, tracking employee hours and setting overtime thresholds can help companies reduce unplanned overtime. This increases profitability by lowering labor costs. Reduced overtime can also improve employee morale. Improved morale can increase employee retention. Increased retention saves money on recruiting and training. As the combined tenure of the workforce increases, performance will likely improve as a result. Consider the impact of using HR analytics to improve many HR processes.

Businesses of all sizes can benefit from HR analytics:

  • Optimize resource allocation
  • Improve oversight
  • Minimize compliance risks
  • Improve training ROI
  • Improve benefits ROI

What happens if you don’t use HR analytics?

Failing to use HR analytics can cause problems throughout the organization. Here are some potential consequences:

  • Customers are ignored when too few employees are scheduled
  • Managers waste time correcting timecard errors
  • Teams miss project deadlines
  • The company can’t compete for talent because their hiring process takes too long
  • Employee turnover increases but no one can figure out why
  • HR can’t determine the ROI of engagement, benefits or training programs

Is there Work Tech that tracks HR analytics?

Human Resources Management Systems (HRMS), Human Resources Information Systems (HRIS), and Human Capital Management (HCM) are all types of HR software that helps track HR metrics.

These systems are suites of integrated HR tools. These tools include:

Applicant tracking system (ATS)

An ATS helps recruiting teams reduce hiring costs, find higher quality talent and use hiring metrics to assess and improve talent acquisition strategies.

Onboarding systems

Structured onboarding systems increase new hire engagement which speeds time-to-productivity and reduces the risk of the employee quitting in the first year.

Performance management software

Successful companies make sure managers conduct performance reviews often. Performance management software helps managers and employees track performance over time.

Leave management software

Tracking PTO accruals, state and federal family leave, and other types of leave with spreadsheets is time-consuming and vulnerable to error. Companies can customize leave management software for their company PTO policies, state and federal laws, and union or government contracts. Automating this process saves time, improves accuracy and minimizes the risk of a compliance violation.

Learning management systems (LMS)

An LMS is an online platform for managing training programs. (Self-directed digital training is also called eLearning.) An LMS allows HR teams to customize, manage and track employee training in a centralized location. The new hire training component is often integrated with onboarding or performance management software. With the increase in remote working, an LMS is a must-have for modern workforces.

Automated employee timekeeping and scheduling software

Time tracking is a foundational business process. Paycheck accuracy is paramount. Labor optimization requires to-the-minute employee time and attendance. Cloud-based software integrated with hardware clocks provides a unified time and attendance solution. The system captures punches, confirms identity, tracks hours, meals and PTO, enforces schedules and prevents time theft. Integrated mobile clock-in and geofencing allow companies to track offsite employee punches and location.

Employee scheduling is a related HR function that can have a profound effect on organizational efficiency. Scheduling software allows you to create schedules in minutes using templates and drag-and-drop tools. Schedule modules integrated with timekeeping simplify schedule publication, timecard submission and approvals, shift trade requests and approvals, and PTO requests and approvals. Overtime alerts help prevent unplanned overtime and overtime compliance issues.

Benefit management software

Employee benefits are both extremely important and notoriously difficult to manage. Using specialized software to manage retirement plans, health insurance and other benefits is a best practice used by successful companies.

See also

Additional resources

Simplify HR management today.

Simplify HR management today.


May 23, 2024

The Occupational Safety and Health Administration (OSHA) is a division of the U.S. Department of Labor. It was established by Congress in 1970 to oversee and ensure healthy and safe working conditions for American workers. Its mission is to provide training and outreach, offer education and assistance, and set and enforce standards related to worker…

Read More

Scripting/custom scripting

May 23, 2024

Scripting is like a mini program that runs on each line of a timecard. As it runs, one by one, it can make changes based on the conditions defined in the script. Its main purpose is to check a condition (for example, whether a punch meets a specific set of criteria). If it does meet…

Read More

WorkforceHub takes care of business.

We’ll show you how.

Request a Demo - Footer Form

Looking for help? Please click here.

brand - dots