HR analytics: used in decision making


Making decisions are very hard at times!

Let’s see what is HR Analytics?

HR analytics is a tool used by business, the HR teams work on an analytical process and they create performance reports about the employees and how to improve them. It is defined as “a process of collecting and analyzing the data related to human resources. It is done to improve the work performance of the employees”. This process is also called many other names such as people analytics or talent analytics. HR analytics are very important when it comes to the decision-making process as they provide the base for decision making in the business.

Why HR analytics are used in decision making?

 HR analytics is the base for decision making in businesses. Data is required to make rational decisions and to prove that these decisions will improve the performance of the employees. This data is collected and then analyzed to get a better insight into the current metrics.

How HR analytics help:

Below I have listed the few things that are done while decision making with the help of HR analytics:

Tracking the performance:

It is important to track the performance of the employees in an organization and this is only possible if you have a complete set of data about the employees.

This data helps the organization to track the performance of its employees. And HR analytics help in tracking human resources.

Hiring human resources:

HR analytics help in decision making related to the hiring of new human resources.

This is done in a way that with the help of HR analytics you create criteria or a set of instructions for the recruitment of the new employees and you make decisions based on the metrics that are devised with the help of HR analytics.

Collection and analysis of data:

HR analytics help in the collection of data related to human resources and help us in analyzing the different types of metrics.

These metrics help us produce accurate results and predict future trends as well.

Research and reporting:

HR analytics is also considered important while doing some research or making research. You can use the already provided metrics for analysis of performance and create resorts about it.

This reporting helps is a part of business decision making. And most of the decisions are based on these reports.

Define future policy:

Companies also define their future policies with the help of reporting and data that is provided by HR analytics.

Companies make all their decisions according to these analytics-based reports. This makes these reports and HR analytics very important for the overall business process and decision making.


We discussed what HR analytics is and why it is important for decision making in businesses. For every business to run successfully decisions are required those are based on facts and are supported by the data.

These decisions help the businesses define their future perspectives and help in different processes of businesses, including recruitment, training, and adapting to new strategies for the future.

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