Research Paper On HR Analytics

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HR Analytics and its Impact on Organizations Performance
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HR Analytics and its Impact on Organizations

Performance
Mr. Hritik Kale, Dr. Dilip Aher, Dr. Nilesh Anute
Institute of Business Management and Research, Chinchwad, Pune
Abstract
In today’s world managing employees in organization is not a one-man task. With the evolving business
and advancement in technologies managing employees and tracking their performance can be
performed online with the help of HR analytic tools. The use of HR analytics has improved employee
performance and increased efficiency in business like, improvement of quality of recruitment, talent
management, employee productivity and decreasing employee turnover. In this paper we are going to
study about HR analytics, its tools, and its application in different organizations.
In this paper we study various use of HR Analytics in different organisations and the benefits of the
use of HR Analytics. With the help of analytical tools the organisations can recognise the issues like
performance, employee turnover and retention employee behaviour, etc by using the data available with
the organisation. This research is conducted because of the lack of use of HR in many organisations.
The use of HR is undermined in many organisations but in this modern technological world various
analytical tools have been developed which are used by huge corporations. In this paper we are going
to see such uses of HR Analytics in 5 different organisations and their how the use of HR Analytics
helped the organisation as well as the employees in monetary ways and change the business strategy
around people - centric way.
Keywords: HR Analytics, HR analytics tools, Data Metrics, Employee Attrition,Organizations
Introduction
Human resource management is focused on the most effective use of people to achieve organizational
as well as personal goals. It basically focuses on hiring, managing, exit related functions in the
organization. To keep employees fuelled and to keep the productivity rising HR’s evaluate employee
performance and develop new training programs for them. HR came into light as a specific field in the
IJRAR22C1936 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 619
early 20th century, inspired by Frederick Winslow Taylor (1856–1915). John R. Commons, an
American institutional economist, first used the term "human resource' in his book &"The Distribution
of Wealth" that was published in 1893. However, it was not until the 20th century that HR departments
were formerly developed to manage the relationships between employers and employees.
Performance Management is an important aspect in Human Resources as it is a continuous

communication process between managers and employees to achieve organizational goals as well as
develop personnel skills of employees. This entire communication process involves defining clear
specific expectations, establishing goals, providing continuous feedback and examining results.
Performance Management builds a communication system between a manager and employee that is
built throughout the year in hope of accomplishing organizational as well as individual goals. To
understand employee managers, go through all the collected data and addresses the performance gaps
through the given data. Various tools are used to gather such data like HR Analytics.
HR Analytic is the collection and application of talent data to improve critical talent. It is basically used
for decision making using the available data, to predict employee turnover and identify better
performers or predict skills that need to be Improved. HR Analytics is also known as people analytics.
It enables your organization to measure the impact of HR metrics on overall business performances and
make decision based on the data.
There are four types of HR Analytics:

 Descriptive Analytics
 Diagonostic Analytics
 Predictive Analytics
 Prescriptive Analytics
(Figure no.1: Types of HR Analytics)
Descriptive Analytics
Gathering raw data doesn’t make sense and isn’t always useful, but once it is sorted and put in a
systematical order it can be useful. Descriptive analysis (also known as observing and reporting) is the
most basic type of analysis and is most likely used. It basically collects all the historical data available
summarizes it into something understandable. A headcount of employees in the organization or some
specific department would come under Descriptive Analytics. More complicated metrics like turnover
rates also come under descriptive analytics as well. They study the past data and aim to explain what
happened.
Diagonostic Analytics
If descriptive analytics tells what happened then diagnostic analytics tells you why it happened. We go
beyond what is happening to searching for why is it happening. Here you make an observation identify
the descriptive analysis and move forward with the diagnostic analysis.
Diagnostic analytics uses various techniques including data drilling and data mining. To investigate the
root causes of problems and find their solutions companies need to understand why the problems are
occurring.
Predictive Analytics
As Descriptive analytics relies on the past data or looks backwards Predictive analytics looks forward.
Different statistical models and forecasts are used in these analytics to predict what could happen. The
goal of this analysis to find the needs of the organization. Models are built on the patterns that were
found on descriptive analytics. It could help predict how long the employee is going to last in the
organization, or it can help the talent acquisition team determine if the employee is a good cultural fit
for the organizations
Prescriptive Analytics
After the future is predicted, the next question is what can be done about the situation. Prescriptive
Analytics provides recommendations on what to do based on the prediction and the old data given. This
analysis is most useful for organizational with seasonal demand. For e.g.: A retailer would want to
know how many people to staff during the holidays. Prescriptive analytics could also help determine
how to properly hire a new employee based on the required skills, and knowledge and across the
employee life cycle. Here you take all the information available on the above levels and prescribe what
should be done. The data itself tells you what should happen further.
There are various professional HR Analytical tools used in today’s organization like Visier, Tableau,
QLIK, SPSS, Microsoft Excel.
Benefits of HR Analytics
 HR analytics through its predictive analytics helps in exposing the defective practices that turns
out to be the key cause for attrition, which helps in retaining and maintaining high performing
employees.
 It helps displaying the results and how they were accomplished.
 HR analytics help in Human resource planning.
 It helps forecasting about employee needs and skill-set for achieving organizational objectives.
 It helps in sourcing the best potential organizational talent requirement for specific positions
without bias.
 It helps in getting better performance results in organization through quality decisions especially
in talent acquisition.
 It helps in pointing out important performance part which may have high impact on the
organizational performance.
 HR analytics tools often include data visualisation and automation so you can to automatically
identify areas of weakness and plan the skills required of the team frame a program for the skills
required.
Literature Review
 Dr. P. Raghunadha Reddy, P. Lakshmi Keerthi (2017), in their research paper entitled “HR
Analytics’ - An Effective Evidence Based HRM Tool” they found that Human resource are
prime value to an organization a need to be focused more. According to them evidence- based
approach is the best way for an organization to make decisions, and HR Analytics not only helps
with that but also provokes organizations to maintain quality data to justify ROI in HR
investments.
 Anshu Sharma, Tanuja Sharma, (2017), in their research paper entitled “HR analytics and
performance appraisal system: A conceptual framework for employee performance
improvement” they found that the role of HR analytics on PA system and its impact on
employee’s willingness to improve performance by proposing a conceptual model. Here the HR
analytics was used as a solution by which they increased the accuracy in the appraisal process
with the use of professional data analysis tools. Along with other assumptions for researchers
in the field of performance management, this paper also suggested different directions for future
research to further improve this field.
 R. Anita. Dr. N. Sumathi (2019), in their research paper entitled “A study on the measuring the
factors of HR analytics on performances management in services sector of selected companies
in Chennai” they found how performance management system influences employee
performance. And how could the different stages in performance management system change
employee performance respectively. The first objective is to review performance management
system and employee performance, also the relationship between them. The second objective
is to analyse performance management system and their connection to employee performance
based on the WERS 2004 dataset. The last objective is to find out the nature of the relationship
between performance management system and employee performance and to develop a set of
recommendations.
 Udhay Kailash and M Prathyusha (2020) in their research paper entitled “HR Analytics
Methodical Measurement of HR Processes” they found that HR Analytics is more important as
it assess how employees contribute to the organization, predicts workforce requirements, and
links workforce utilization to strategic goals to improve the performance of the business. In his
case the model of HR Analytics is widely accepted in the Pharma industry and can be replicated
in other organizations of the same industry as well.
 H.H.D.P.J. Opatha (2020), in their research paper entitled “HR Analytics: A Literature Review
and New Conceptual Model” they found that HR analytics provides a data-driven framework
for solving workforce problems through analysing data with a combination of software and
methods that applies statistical models and provides new insights for smarter decision making
that allow manager to optimize human resource management.
 Muhammad Said, Dr. Imran Khan, Dr.Filza Hameed (2021) in their research paper entitled
“The impact of performance management system on employees' performance” they found that
the management of any organization should change their performance management system
practices to make them more continuous. It is suggested that management should analyse and
consider the problems of employees, and identify them and help the employees in confronting
them like a united team. Organizations should use acknowledgment methods which will make
employees more encouraged and motivated when they will have a sense recognition. As a result
of their efforts being appreciated and recognized employees try to achieve the required
objectives. The organizations should involve the employees in the goal setting and reward
employees for their effort in completion of their goal.
 According to Steven McCartney and Na Fu (2022), in their research paper entitled "Bridging
the gap: why, how and when HR analytics can impact organizational performance" they found
HR Analytics is still a new concept and as a result, scholars are still highlighting how HR
analytics can help decision making and accomplishing organizational goal. this study proposed
a chain model where access to HR technology enables HR analytics which supports the
Evidence Based Management, ultimately improving organizational performance.
Research Methodology
Objectives of the study
 To understand how HR Analytics helps in performance management

 To understand reasons of employee turnover and retention
 To understand employee behaviour in the organization
The research methodologies involve the way in which the research is going to be conducted. This
includes how you plan to collect data, use of statistical analysis, observations, etc. The purpose of
research methodologies is to back up or support your collection method and key points of your research.
Secondary data
Secondary data is data collected from previous research instead of collecting the data yourself.
Secondary data is basically a primary data stored by someone and is used by others for their own
purposes. For this paper we have collected various cases from different websites and journals.
Secondary data Analysis
Google
Google is a limited liability corporation that uses cloud computing, search engine technology, etc.
Google is considered to be one of the big five IT companies in the world alongside with Apple. Amazon,
Microsoft and Meta. Google was founded by Larry Page and Sergey Brin in 1998. Alphabet Inc. Is the
parent company of Google and the current CEO of Google is Sundar Pichai. The company consists of
more than 1,40,000 employees. It was ranked first on the list of Best Companies to work for in 2007,
2008, 2012 according to the Fortune magazine.
Use of HR Analytics for Google:
Google developed a program named “Project Oxygen” Which basically is a mix of employee feedback
and data on productivity of employees which calculates employee behaviour and their skills and
determines what successful managers do. From this data Google was able to derive 10 behaviours of
great managers.
Results of HR Analytics for Google:
The project helped train future business leaders and improved performance among the management
teams. The employees did not focus much on hard skills like technical skills but more on soft skills and
emotional intelligence.
Experian
Experian is an information service company that is based in Dublin, Ireland that provides data and
analytical tools other organizations. During the period of 1996 Experian was owned by GUS, but on
10th October 2001 Experian seperated from GUS and became an independent company. Experian
collects and analyses credit reports of people and business through various sources. They create credit
reports that are analysed by businesses like banks, healthcare, automobile, etc and calculate credit
scores based on the reports. It helps understand whether the applied loan by the customer can be fulfilled
or not. At the fiscal year of March 2020 Experian reported the revenue of US$ 5.18 billion. The
company is listed on London Stock Exchange. Experian consists of approximately 17000 people in
around 44 countries. In 2018 Experian was among top 100 most innovative companies in Forbes
magazine.
Use of HR Analytics for Experian:
In 2019, Experian, launched a new analytical tool known as predictive workforce analytics. The
company was facing high turnover since 2016 and was losing a lot of money. Despite the fact that
Experian was one of the best companies to work for, employee turnover became a major challenge for
the company. In 2016, it found that the resignation rates were at 4 percent over the industry standard.
Financially speaking every 1 percent increase in turnover was costing the business around $3million.
This had a huge effect on the company. Olly and Wendy Cunningham from Experian’s Global HR team
had started working on building a analytics solution that would give global HR teams better insight into
employee needs and. They believed that such an approach would enable the company to identify the
benefits that people valued more informed retention strategies. The company used the Analytics system
Visier,
Result of HR Analytics for Experian:
With the implementation of Visier the company was able to reduce the time that was spent on
scheduled reporting of employees by almost 70%. Reports are no longer provided to employees, and
employees are encouraged to self-provide information where possible. For Experian, the predictive
workforce analytics platform proved transformative, bringing in favourable outcomes for the
employees while saving costs and time for the company.
Walmart
Walmart is an American multinational retail organization that runs various supermarket chains across
the world. The first Walmart opened in Arkansas in 1960 by Sam Walton. By 1967 the Walton family
owned 24 stores and earned 12.7 million in sales. Walmart is listed on New York Stock Exchange. IN
2022 Walmart ha over 10585 stores in 24 countries. According to Fortune Global 500 Walmart is
considered to be the largest company by revenue with around US$570 billion in annual revenue. It is
also the largest private employer with 2.2 million employees. Walmart operates different stores under
different names in various countries like in India where Walmart has acquired 77% of majority stake
in the e-commerce company Flipkart.
Use of HR Analytics for Walmart:
In 2015 Walmart created a tool that allowed the Walmart’s team to make its data available for users to
check into their own reports. Walmart developed four segments in the system they called the "analytics
engine" of their team:
 Modelling and data mining: This is where the analytical team would work on systems to help
with the forecasting or making "evidence-based decisions."
 Research: - These mainly dealt with unorganized data. This program ran surveys for the
complete Walmart workforce each year to hear the issues of the employees.
 Prototype and Visualization: - In this segment different approaches are developed that allows
the collected information and data to be used on business problems.
 Test and learn: - Once the correct approach has been developed, test is carried out in a store or
other facility before launching it in the organization. Once its effectiveness has been
demonstrated the IT department distributes in the organizations.
Result of HR Analytics for Walmart:
This saved up the time of team leaders from having to do the reporting themselves.Projects are
prioritized according the HR before being allocated to the departments or specific teams. This way the
analytics is distributed over the globe and can be operated remotely as part of a collaborative team.
Wegmans
Wegmans Food Markets is a supermarket chain across that runs all around America. It consists of a
total of 107 stores. Wegmans have a total of 52000 employees and has ranked 3rd on Fortune annual
100 best companies to work for, the company has been on this list every year and ranked 1st in 2005.The
company recorded an annual sale of 11.2 billion in 2021. The company was founded by the Wegman
brothers John and Walter Wegman in 1916. The organization provides various educational donations
as well as charities like a scholarship program that provides $5 million tuition assistance each year for
the employees.
Use of HR Analytics for Walmart:
In 2007, needed to reassess their employee healthcare benefits. The company conducted a survey in 17
of their high performing stores and got a 76% response from a sample of 1,310 employee. The survey
posed two types of questions
Employees were asked whether they felt any difference in existing market and new market. In the
second question employees were asked how they felt about their rewards. Employees were asked to
choose between two packages consisting of employee healthcare benefits and compensation for
employees.
Result of HR Analytics for Wegmans.
Both the questions showed that employees preferred health benefits as a dealmaker for both joining and
staying in the organization. The company also noticed that base pay was ranked at the bottom of both
of these lists in terms of employee value.
Johnson & Johnson
Johnson and Johnson is an American company that develops medicines and pharmaceuticals. The
company was ranked 36th on the 2021 Fortune 500 list of companies with biggest revenue. In the year
2020 the company had a worldwide sale of $82.6 billion. The company was founded by Robert Wood
Johnson and his brothers James Wood Johnson and Edward Mead Johnson in 1886 with 14 employees,
8 female employees and 6 male employees. Currently Johnson and Johnson have more than 1.44.500
employees.
Use of HR Analytics in Johnson and Johnson:
The company was facing problems with increase in both employee performance and retention in their
organization. At that time candidates with job experience were hired in the industry, thinking that the
experienced employees would provide more contribution in the organization. Due to this the company
faced 10% decrease in employment of recently graduated students. The HR analytics team collected
the data on 47,000 employees to check the link between experience and turnover. The collected data
showed that employees that were hired from college actually remained with the organization for a
longer period of time than more experienced employees. The results also showed that there was not
much difference between the freshers and the experienced employees regarding their contributions to
the company.
Result of HR Analytics for Johnson and Johnson:
After studying the results, the company introduced a new two-year leadership development program
which might help in decreasing the turnover rates in new employees graduated from college. Based on
the people analytics study, the company increased employment among recent graduates by 20 percent,
which helped reducing turnover and maintained the performance among employees.
Findings
 In the first case we can study that Experian faced problems in employee turnover, but after using
predictive workforce analytics they learned what were the employee needs and reduced their
reporting time by almost 70 percent.
 Here Walmart was using analytical tools but due to changes in aspirations and goals the tools
did not match the company. Therefore, they changed their analytical tools to different tool. This
tool gave easy access to business users where employees can check in to their own reports which
saved the time of reporting by managers.
 This case revolved around employee's performance and personalities. Here they used different
tools for different problems. The first issue was selection where very little data was available
of the employees so the firm’s technical team designed a series of online games which gave
them a picture of employee’s personality and thinking. The second issue was about day-to-day
management for which the company used an instrument called Organizational Health Index
which pointed out different management practices that would improve the organizational health.
The third problem that the company faced was the employee interactions with the customers
for which the company used sensors that tracked the amount which employees used to
physically move around the restaurant, the tone of their conversations with the customers, and
the amount of time spent on talking and listening to colleagues and customers in the restaurant.
 Wegman Food Market was facing high cost in renewing healthcare plan for the employees.
They conducted a survey asking about engagement and satisfaction between employees and
how they felt about their rewards. They were asked to choose hypothetically different employee
packages where they found that employees were willing to have low pay to limit their liabilities.
 In this case Johnson and Johnson were losing graduate employees because they were focusing
on experienced employees assuming they would be more beneficial for the company. But after
conducting research they found that graduate employees were staying with the company for
longer than experienced there wasn’t any difference between their contribution. Therefore,
Johnson and Johnson developed a leadership program which reduced their turnover among
graduates and maintained their performance.
Conclusion
The organization needs to address questions like “Why do employees should stay with our company?”
HR analytics allows you to calculate what employees needs or is lacking and then create a system or a
program that will help increase the performance and retention rates. Companies like Google uses HR
Analytics to collect employee performance data to determine the most effective training programs to
help both high and low performing employees.
HR analytics and other unrecognized organizational methods that are related with HR analytics are
ignored by many organizations. The study focuses on how HR practices could be used to change
traditional roles to transformational roles in organizations. The study tries to explore and understand
the role of analytics in this modern era. Increase of expectation in performance has put the focus on HR
Analytics to create a new innovative and competitive world at work.
To execute the role effectively, HR managers and leaders need considerable support from their
organizational leaders. First, they need to be able to go in-depth of the problem. These problems can
come from various issues and experts in the areas such as change in management, leadership
development, staffing and metrics, and HR Analytics, can help analyse the situation and provide
possible solutions for these problems.
References
1. Dr. P. Raghunadha Reddy, P. Lakshmi Keerthi (2017), “HR Analytics’ - An Effective Evidence
Based HRM Tool”, International Journal of Business and Management Invention, Volume 6,
Issue 7.
2. Anshu Sharma, Tanuja Sharma, (2017), “HR analytics and performance appraisal system: A
conceptual framework for employee performance improvement”, Management Research
Review, Vol.40, Issue 6.
3. R. Anita. Dr. N. Sumathi (2019), “A study on the measuring the factors of HR analytics on
performances management in services sector of selected companies in Chennai”, JAC: A
Journal of Composition Theory, Volume 12, Issue 12.
4. Udhay Kailash and M Prathyusha (2020), “HR Analytics Methodical Measurement of HR
Processes”, International Journal of Innovative Science and Research Technology, Volume 5,
Issue 11.
5. H.H.D.P.J. Opatha (2020), “HR Analytics: A Literature Review and New Conceptual Model”,
International Journal of Scientific and Research Publications, Volume 10, Issue 6.
6. Muhammad Said, Dr. Imran Khan, Dr.Filza Hameed (2021), “The impact of performance
management system on employees' performance”, International Journal of Business and
Management Sciences, Volume 02.
7. Steven McCartney and Na Fu (2022), "Bridging the gap: why, how and when HR analytics can
impact organizational performance", Management Decision, Vol. 60, No. 13.
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HR Analytics and its Impact on Organizations Performance

Conference Paper · August 2022

Hritik Kale Nilesh Balvant Anute

SEE PROFILE SEE PROFILE

HR ANALYTICS AND ITS IMPACT ON ORGANIZATIONS PERFORMANCE View project

The user has requested enhancement of the downloaded file.

HR Analytics and its Impact on Organizations

Keywords: HR Analytics, HR analytics tools, Data Metrics, Employee Attrition,Organizations

Performance Management is an important aspect in Human Resources as it is a continuous

There are four types of HR Analytics:

(Figure no.1: Types of HR Analytics)

Objectives of the study

 To understand how HR Analytics helps in performance management

Secondary data Analysis

Use of HR Analytics for Google:

Results of HR Analytics for Google:

Use of HR Analytics for Experian:

Result of HR Analytics for Experian:

Use of HR Analytics for Walmart:

Result of HR Analytics for Walmart:

Use of HR Analytics for Walmart:

Result of HR Analytics for Wegmans.

Johnson & Johnson

Use of HR Analytics in Johnson and Johnson:

Result of HR Analytics for Johnson and Johnson:

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