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5 Ways in which HR Data Analysis Improves Overall Business Functioning

In a 2020 Deloitte report, 46% of surveyed organisations believe that the biggest impacts to the evolution of HR in the next 12-18 months are increasing new capabilities to thrive in the digital age through digital fluency and data analytics. In another (2019) Human Capital Trends survey, Deloitte highlighted that 26% of companies report effectively using technology and analytics. The upward trend in adopting HR data analysis for improved business functioning makes it a priority for modern businesses.  

Below are 5 ways in which HR data analysis can help improve the overall functioning of your business: 

Improved Decision-Making  

Decision-making in HR in successful businesses is based on information from data analysis. Deciding on when to recruit or develop talent affects all departments of the business. Thus, making use of HR data analysis can determine the need for given decisions in particular departments and the potential impact of the decisions. Decision-making on the basis of HR data analysis goes beyond the scope of HR functions and addresses the needs of the entire organisation.  

HR Performance Analysis

Developing Employee Wellness Support Programs 

HR data captures the wellness status of the workforce. The continuous improvement of employee wellness management programs could benefit from the use of HR data analysis. HR data metrics touching on health or wellness include age and activeness. Working with available data metrics helps align the business with legal requirements on employee health and wellness management. This process brings the opportunity to determine the best approach in dealing with employees with different health needs. 

Predicting Future Business Performance 

HR data analysis helps predict the effectiveness of employee performance in the future across respective departments. Based on HR data insights, managers can determine the employees most likely to exit the business in the short or long-term. Decisions can be made about specific employees in need of further training, support, and development in the business. Predictive capabilities in HR data analysis can help prepare businesses for potential challenges in advance and take advantage of arising opportunities. In this case, fact-based decisions can be made about business functions that will impact the organisation’s future.  

HR Historical and Trends

Aligning the Business with Global Business Trends 

Businesses can benefit from national and global environments. HR data analysis highlights the strengths and weaknesses of the employee body in relation to particular identified global trends. Comparing internal employee performance with ​​emerging global standards reveals the competitiveness of the business. Respective department managers can therefore attempt to align employee competencies to match global standards and attain long-term success.   

Driving Innovation in the Business 

HR data analysis reveals different areas in which employee work performance can undergo automation. Adopting innovative measures in the business can transform sections of the business or its entire operational structure. Thus, innovation, as informed by HR data analysis, helps automate various mundane employee tasks and administrative duties in the business and allow capable employees to spend more time on important tasks. 

Lalwani, P. 2019. What Is HR Analytics? Definition, Importance, Key Metrics, Data Requirements, and Implementation. Retrieved from 
Hussung, T., 2019. HR Analytics Are Changing Modern Business: How Can Your Company Benefit? 
Straz, M. 2016. HR Analytics: How Should Big Data Be Used in the Workplace? Retrieved from  
Deloitte Insights, 2016. Introduction—The new organization: Different by Design. Retrieved from  
Deloitte Development LLC, 2016. Enabling business results with HR “Measures that matter” Retrieved from  

Deloitte Global Human Capital Trends 2020 from

 Deloitte Global Human Capital Trends 2019 from

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