HR analytics is a data-driven approach to improve HR-related decisions.

The accuracy of HR analytics

is determined by the data acquired from HR metrics of employees. Using data relevant to HR efforts,
HR directors can discover good practises and identify weak areas in need of improvement. HR
analytics helps with strategic decision-making, which can lead to better corporate results.

The major statistical levels of HR analytics for any major conundrum would be descriptive analytics,
diagnostic analytics, predictive analytics and prescriptive analytics. Descriptive analytics is described
as the use of data to analyse and reflect on past occurrences in order to draw conclusions about why
things happened the way they did. At this stage, the most important component of diagnostic
analytics is simply looking at correlations between variables. The HR analytics maturity model is
defined by making predictions, and predictive analytics can take the form of creating causal models
or investigating how interactions between parts affect outcomes. Prescriptive analytics is used in HR
departments to collect data and use it to not only predict but also plan for the future.

This can be used to improve recruitment process, talent retention, work life balance, benchmarking
and compensation related overhaul in organisation.