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Top 3 Reasons Why Companies Should Analyze their HR Data

Analyzing HR data can set businesses ahead of the competition in their ​industry. It helps with the identification of areas in need of improvement for the better running of operations. Using HR data analytics can reveal the efficiency of business operations. This has resulted in the growth of HR data analysis among modern businesses.  

Here are the top 3 reasons why your company should analyze its HR data: 

Supported Strategic Decision-Making  

Employee engagement lies at the heart of strategic decision-making. Proper knowledge of employee effectiveness in the organization informs major decisions in management. Leaders and managers can make informed, data-supported decisions and pre-determine the possible impacts of their decisions. HR data analysis provides information on the performance of individual employees and their continued contribution to the business. Using HR data metrics,​ one can then determine the appropriateness of a decision based on the current and projected future position of your organization’s workforce (as well as current and future staffing needs).  

Developing Safe Working Conditions  

In the modern working environment, employee safety is one of the employer’s primary ​responsibilities. Business owners are legally required to ensure employees have a safe working environment. Through HR data analysis, managers can identify the causes of injuries and accidents among employees and develop suitable solutions. HR data metrics can help pinpoint areas in the workplace that have recorded the highest number of injuries. Managers can also determine the nature of injuries and the overall impact on organizational performance. Employee performance and exposure to safety risks can be logged in an HR Data System ​made ​available for analysis over time.  

Identifying the Need for Employee Training & Development 

In the fast-changing business world, employee training and development are key aspect​s of organizational success. Skilled employees save businesses more money and record higher productivity levels than under-skilled employees. Using HR data analysis, businesses can identify the number and level of employees in need of training and development. HR data analyses reveal how well employees perform their assigned roles and responsibilities and their speed of work. The combination of different metrics enables managers to determine employee skill-level based on their assigned roles and responsibilities. Determining the need for training and development for specific employees in the organization saves businesses high costs associated with firing, recruiting and hiring employees.  

HR data​​ analysis holds numerous benefits for contemporary organizations. Top of the lists are benefits that contribute directly to the improvement of organizational efficiency and effectiveness.  

Mar, B. (2018). 5 Inspiring Ways Organizations Are Using HR Data. Retrieved from  
Thompson, J. (2019). 10 Reasons HR Is Important to an Organization. Retrieved from 

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