Not long ago, marketing and finance industry experts were debating whether or not collection and analysis of big chunks of historic data will be of any use for future decisions. Currently, big data analytics has made its impact felt not just in the above two but in almost all data-oriented industries. However, human resource management has by nature been more people-oriented. Thus, it has not seen data analytics being used as much as the other industries. Even those companies which are sitting on large heaps of data are not utilising it to the best possible extent. So, does data analytics fit in HR management?
HR analytics is defined as an approach to utilise human resource data maintained by the organisation to measure the direct or indirect impact of HR campaigns on important business outcomes. Even without using HR analytics, businesses spend a significant amount of money on HR functions. But in absence of solutions which can measure the effectiveness of HR decisions, HR leaders would always be shooting in the dark. HR analytics helps in predictive analysis to make and execute the decisions in a rational way