Data analytics has transformed the face of human resource. This concept is quite helpful in hiring the right fit. With data analytics, HR managers can figure out sources for getting quality candidates and know who can perform well in a specific role. It is an accurate way to measure the optimization and performance of your business. This lays a foundation for HR department to devise new strategies and introduce best practices to increase the performance.

In this article, you will find five ways in which data analytics can be used by organizations to bring a change in HR operations.


Recruitment analytics solutions have simplified recruitment. With a resume parser software, shortlisting candidates has become a game of a few seconds. But apart from such solutions, data analytics can help HR managers focus on a group of candidates who are deemed fit for the job. The future will also provide information about the employee’s length of stay in an organization or if he gets promoted.

Employee Engagement

You can also engage employees effectively by improving your team structures through data analytics. It is true that engagement level drops when employee does not interact with the manager. Data analytics help you identify areas which can be focused upon for increasing engagement.


An organization can define an equitable salary structure for employees which matches their qualifications. Data analytics help in identifying pay gaps, if any, to bring uniformity in the pay scale. This gives HR managers a chance to fix issues by devising strategies.


Evaluate risk and make a plan B beforehand. Data analytics give you insights about your data as compared to your competitors. We are moving in a direction where data analytics will act as our assistance. You will get a list of areas which can be focused upon to get better results.


Data analytics is an effective way of controlling overtime. Though overtime becomes a requirement at times but it is not cost-effective for a business. With data analytics, you can get an employee’s history of absenteeism and how overtime is affected by these absences. With right data in hand, HR managers and professionals can make their business strategies more economical. There will be cost-cutting as overtime can be easily reduced.

Identifying problem areas and prescribing solutions for the same is the role of data analytics. Thus, use these tools to improve your HR functions and generate better business.

Thank you! Your subscription has been confirmed. You'll hear from us soon.