3 Ways in which Effective HR Data Analysis can lead to Employee Happiness

These days it is arguably common practice for successful businesses to make decisions based on insights from analysed data and data insights. Specifically, HR data can give useful information on where improvements need to be made concerning employee training, hiring, or retention processes. Such processes have an effect on employee attitudes and satisfaction in their work environment and this is why HR data analysis is a simple key to employee happiness in the organisation.


Let’s explore three ways in which data analysis and consequent workforce changes can lead to improved employee moods.


1.    Reducing Work Overload and Job Stress

Work overload is a main source of employee unhappiness and excessive stress. Overworked employees are under constant pressure to deliver work goals with little to no opportunity to voice their concerns. Effects of an overworked employee are soon revealed along the workflow. Heads of departments might not notice unhappy employees in these situations as most employees choose to remain silent. The use of HR data and the analysis thereof, can expose the state of employee unhappiness resulting from work overload and excessive stress.

Effective employee data analysis can involve AI (artificial intelligence) tools for gathering and analysing organisational and employee data. The use of predictive approaches warns decision-makers of problems such as excessive workload, employee task deadlines, and stress among workers before employees choose to leave or cannot deliver successful projects.


2.    Conflict Resolution

HR’s role covers internal interactions and relationships between employees and managers. In a case highlighted by the Predictive Strategy Group, a company conducted an HR data analysis and discovered low morale levels among 10 of their employees. Following an inquiry, the analysis established that the cause of this unhappiness arose from the employees’ disagreement with their respective managers. From this analysis, HR leaders were able to restore their employees’ happiness and satisfaction in the workplace – subsequently dealing with problematic managers and relationships.  

This example points to the potential uses of HR data in improving retention and ultimately saving the overall company resources (avoiding recruitment processes). Promotion of employee happiness through effective conflict resolution could encourage further employee development activities. Employee development and engagement is more likely to take place following an improvement of employees’ happiness levels.


3.    Fair Employee Reward and Promotion 

Rewards and promotions are useful in encouraging improved employee performance in the organisation. Reward and promotion approaches that are deemed unfair among employees can be a source of unhappiness in the workplace and lead to low levels of morale and productivity, and a low employee retention rate.

HR data analysis could offer useful insights that inform the business’ approach to rewarding promotions to workers. The knowledge that decisions on rewards and promotions are derived fairly from employees’ performance data translates to positivity among the workers.

McMeechan, affiliated with Capstone Financial Planning, advocates for the use of HR data analytics in determining which employees qualify for rewards and promotions in the business. The employees’ confidence in business processes gradually increases and this results in workplace happiness.


In Summary

The choice and implementation of HR data analysis approaches is likely to result in benefits for the business and stakeholders. The happiness of employees could improve significantly prior to the adoption of HR data analysis approaches in improving workplace happiness. Measuring employee-happiness levels gives a better idea of the measure of benefits HR data analysis brings to the business.      




McMeechan, S. 2019. How Your Bottom Line Can Be Improved By HR Analytics. Retrieved from https://www.analyticsinhr.com/blog/examples-hr-analytics-improve-bottom-line-performance/

Singh, N. 2016. India Companies Use Analytics Tools to Spot Talent and Trouble. Retrieved from https://timesofindia.indiatimes.com/trend-tracking/India-companies-use-analytics-tools-to-spot-talent-and-trouble/articleshow/54790024.cms

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