The importance of the HR analytics for HR processes

December 9, 2020

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HR analytics enable the HR function to optimize, cross-reference and exploit a large amount of precise data, provided by all the company’s information systems, in order to better understand and anticipate social and human trends and to take strategic decisions for the company.

In 2018, 58% of the managers consulted by Markess by exaegis already considered analytics to be an important issue for the HR function. However, 62% felt that their company was not mature on this issue. In 2020, the use of analytical solutions has accelerated for three main reasons:

  • The optimization of HR processes: In addition to saving time and efficiency, analytics will enable us to anticipate problems or, in certain processes, to consider possibilities that had not been detected by human intelligence and to bring up data on employees, which is important in the development of a relevant ’employee relationship’.
  • The need for automated HR processes, in order to solve disorganization issues resulting from the health crisis (such as, team distribution, avoiding overcrowding in the office or lack of communication due to remote work). Indeed, today there is no uniform HR process automation policy. This is done on a project-by-project basis. At first, there are highly digitalized HR processes, often linked to payroll or ‘administrative management’, but which do not necessarily benefit from the latest technological advances. In a second time, there are younger, less digitalized processes, often linked to ‘human capital management’, but which benefit from the latest technological advances. The use of more complex and more efficient algorithms (XAI) provides a first solution to the problem. By unifying, structuring, analyzing and sharing the ever-increasing mass of data that a company possesses, analytics gives a focus to the policy of automating and digitizing HR processes.
  • The optimization of the ’employee relationship’, which is based on a better knowledge of the company’s employees and the development of a ‘personalized relationship’ with them, in order to better understand their expectations, improve the response and optimize their investment in the company. In addition to this aspect, analytics also makes it possible to detect psycho-social risks and to anticipate an employee’s ‘dropping out’: 60% of HR decision-makers emphasize this element.

HR Analytics gathers and enhances the value of all the company’s HR data.

An HR analytics tool enables ‘objective’ and ‘scientific’ decisions to be made on a large scale, based on the links between seemingly different factors. 60% of the HR decision-makers surveyed mention the importance of analytics in automating HR processes. In this context, it allows the optimization of data from KPI’s and to establish the position of the HR function in the eyes of senior management. 45% believe that the role of analytics in measuring these KIP’s is important, even very important.

Generally speaking, the use of analytical tools is limited to certain processes where the feedback of useful data for the company is highly reliable. 67% of the managers consulted agree with this opinion. Too much data to be analyzed would become harmful for the company at a time when employees are increasingly attentive to the processing of their data and when the ‘right to forget’ is a crucial element of a GDPR that is not always easy to respect.

One of the company’s main challenges remains the elimination of barriers linked to the use of employee data. Moreover, for 50% of HR decision-makers, technical and technological complications are a barrier to the widespread use of analytics. Only 25% of respondents mentioned financial barriers. Among the processes for which the decision-makers surveyed make the most use of analytics, the following stand out:

  • Payroll, favoured by 80% of the managers consulted: Analytical accounting provides the company with a detailed view by ‘business area’ and enables it to make forecasts, note discrepancies and implement the necessary corrective actions.
  • Personnel administration, mentioned by 60% of the decision-makers: Analytical accounting enables the company to get to know its employees better and to develop a relevant ’employee relationship’.
  • Performance evaluation mentioned by 60% of respondents: The analytical tool will enable the company to have a more accurate view of its employees’ performance and to adapt its training programs and career development policy accordingly. It also encourages the implementation of systems that are likely to challenge and involve the employee more.
  • Recruitment was mentioned by 40% of those questioned: the precise analysis and cross-checking of the data provided by the candidate makes it possible to verify its veracity.