Are You Making the Most Out of HR Analytics?

How mature is your HR analytics strategy?

How advanced is your HR analytics strategy?

Today, most companies are collecting vast amounts of detailed data about their people. However, only a small percentage actually conducts deeper analysis of this data and uses gathered insights to take action.

Companies that act on the gathered data and analytics to solve critical business issues will surely be able to out-hire, out-manage and out-perform their competitors. Are you among them?

How mature is your company’s HR analytics strategy? Are you just getting started with some basic level of HR analytics? Or you’ve mastered even the advanced HR analytics best practices?

4 levels of HR analytics

We distinguish four levels of people analytics, from basic to most advanced:

1. Descriptive analytics
   Descriptive people analytics provides an answer to the following question:
   “What has happened?”
   This type of people analytics is defined by using data to understand and reflect on what has already happened in the past.
2. Strategic analytics
   Strategic people analytics provides an answer to the following question:
   “Why did this happen?”
   This type of data analytics is defined by developing causal models and searching for the reasons behind a certain occurrence.
3. Predictive analytics
   Predictive people analytics provides an answer to the following question:
   “What could happen?”
   This type of data analytics is defined by using statistical models and forecasts techniques that can predict the future based on the past.
4. Prescriptive analytics
   Prescriptive people analytics provides an answer to the following question:
   “What should we do?”

This type of data analytics is defined by using simulation algorithms to analyze a number of different possible solutions in order to choose the one most likely to provide the desired outcome.

Learn more about the reasons why HR analytics is a new HR imperative!