5 Best Reasons on Why Choose HR Analytics As A Career

Why Choose HR Analytics as a Career

Table of Contents

HRM and HR analytics are the same, right?

Many confuse this as a part of the Human Resource Officer’s job description. But that ain’t true. Both are different careers.

We all know about HRM (Human Resource Management). Let us understand what Human Resource Analytics is and why one should choose HR Analytics as a career.

Key Takeaways

  • Learn the Meaning of HR Analytics.
  • Understand Why to Pursue a Career in HR Analytics.
  • Know the Types of HR Analytics.

What is HR Analytics?

Human Resource Analytics is also widely known as Talent Analytics, Workforce Analytics, or People Analytics. 

In simpler terms, it helps to analyse human resource data using technologies and follow specific practices that help an HRM team make decisions based on research and data to help them make accurate decisions rather than going with their gut.

HR analytics helps improve strategic decision-making through statistical tools, which is missing in the conventional method. 

The results of HR analytics can assist in answering questions such as:

  • How high is your employee turnover rate?
  • Which employee is an asset and should be retained if they decide to leave the company?
  • How much of your employee turnover is a regretted loss?
  • Which employee is likely to leave your organisation within a calendar year?

Why Choose HR Analytics As A Career?

HR Analytics has become a demanding role for major companies in this data-driven economy.

So, choosing this career is a wise decision at this point because of the following reasons:

  • The current competition for this career is low, and the demand is high.
  • You get to make better decisions like when to hire, who to retain, whom to fire, or, if necessary, when to lay off employees. These are some decisions that should be made after thorough research and data consultation. Apart from this, there are various key strategic decisions that you have to make as an HR analyst.
  • Improve the employee training process with the help of previous data. You can decide if there’s a need for a change in the training program so that you get to increase employees’ efficiency and effectiveness in their work.
  • You help find loopholes in an organization’s current strategy and help them grow on multiple fronts while managing the budget efficiently.
  • HR Analytics is a much more secure job than other roles because you have in-depth knowledge of the company, like its strengths, weaknesses, threats, and opportunities, and are more inclined to make big decisions. So, it’s unlikely that a company would fire you.

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Types of HR Analytics

One must be aware of the four types of HR Analytics, which are as follows:

Descriptive Analytics

This type of HR analytics helps to get a clear picture of what has happened in the past and what the current situation is, which is analysed with the help of raw data. 

This analytics spots inconsistencies and mistake patterns, which in turn help in the planning process. It helps to know things like turnover rate, cost of hire, etc., by using techniques like data mining, data aggregation, etc.

Diagnostic Analytics

This helps answer the question, “Why did it happen?” 

For example, if data shows that a large number of employees left the company at a specific time, diagnostic analytics can help answer the question of why did they leave? The reasons could be a low salary, no learning or growth, bad office timing, or no work-life balance for the employees. This process helps to determine the exact cause of why employees left. 

Predictive Analytics

In this process, we use past and present data to predict future outcomes and take decisions accordingly. This helps answer the question, “What will happen?” 

For example. If employees have left the company and, through diagnostic analytics, we got to know that they have left due to no-work life balance. Then, this analytics can predict that if this situation continues, then this many employees will leave the company, and if we change our course of action, then this issue can be resolved.

Prescriptive Analytics

In this step, HR analysts analyze all the data and accordingly prescribe the best possible solution to solve the problem. 

Continuing with the above example, here HR analysts will recommend steps to improve the work-life balance for employees with solutions like they should not work on Saturdays or reducing the workload or advice on changing office timings. Whichever they think will work best with the company’s interests.

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The learning and development you gain from this career are immense because, apart from technical skills, you develop soft skills throughout the career. 

If you have a knack for solving challenging problems and trust me, when you get into this career, you will continuously face new challenges, which will keep you fired up. 

I hope this blog helped answer the question!

Frequently Asked Questions (FAQs)

Does HR analytics pay well?

In India, the average salary for a fresher in HR analytics is around Rs 6 lakhs per year.

And the average annual salary for an experienced employee in this field is around Rs. 15 lakhs.

Is HR analytics the future of HR?

Definitely, as organizations become aware of the advantages of HR analytics, it is soon going to be a critical part of all major decisions and a central part of the HR team.

What skills are needed for HR analytics?

Skills necessary for an HR analyst are communication, leadership, presentation, and analytical skills.

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