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HR analytics

What is HR analytics?

Main HR glossary HR analytics

HR analytics is an approach that helps a company use data to make the right decisions in managing its workforce.

HR teams collect data on things like productivity, engagement, and turnover rates. By analyzing this information, they can figure out how to help employees reach their full potential and improve overall business performance.

Let’s say a company looks into why employees are leaving and finds that many are quitting due to rigid work schedules. Based on these insights, HR might introduce flexible hours or remote work options to boost retention.

Modern HR analytics tools — like AI and machine learning — can even predict potential issues before they happen. For instance, companies can identify employees at risk of leaving and take action to keep them engaged.

HR analytics is also used to evaluate the effectiveness of training, plan HR budgets and develop strategies to improve employee engagement. This turns HR analytics into a powerful strategic management tool that can improve a company’s competitiveness.
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