Abstract: job mobility, training and development, compensation, staffing and


demand for better talent management is growing, organizations are becoming more
data – led hence making people data become currency and Workforce Analytics has
become the need for every organization. 
The emergence of latest IT software Workforce Analytics helps to gather,
manage and use talent information more effectively than ever before. These data
has helped the senior level management to gather information about their people
with help of these information future decisions is being made. HR Analytics is being
used for many HR Value chain elements such as recruitment, performance,
development and transitioning, selection, on-boarding, performance management,
succession and talent planning and employee engagement as well.  Hence it can be concluded that HR Analytics
has in deed become the panacea for all the problems and challenges which the
Human Resource function has been facing and proved to be the vital tool for
gaining competitive edge in this fierce changing economy. This conceptual paper
studies the role of Hr analytics in the field of Talent Management through study
of various popular literatures and tries to suggest various avenues of future

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Keywords: Workforce
Analytics, Performance Management, Employee Engagement












Information technology has brought new
revolutionary concept like HR analytics which quantifies the HR aspects with more
ease. HR Analytics has helped organizations to mine the qualitative data of
Human Recourses to derive quantitative measures of HR intelligence which can be
used to optimize the key performance indicators hence driving performance.
Human Resource department seizes mammoth amounts of
data about the employees like employee performance, turnover rate, job
mobility, training and development, compensation, staffing and many more but
these remain stagnant in various HR systems and are rarely used for any
strategic decisions. But with the emergence of the latest IT technology viz. HR
Analytics, these unused data can be utilized for making fact based strategic

Resources Analytical tool has provided HR executives, HR professionals and line
managers with the  powerful metrics,
alerts, and reports, in order to understand how workforce factors are affecting
individual departments and provide necessary basis to take appropriate actions.
Managers and front-line professionals receive critical information on staffing,
recruitment, training and development, performance, workforce cost, and
diversity at each level such as by demographic details, geography, job
category, division, and pay grade, etc.

HR analytics or workforce analytics aids the organizations to make
workforce decisions by reducing the costs, identifying the revenue streams,
mitigate risks, and execute effective business strategies. HR analytics
empowers the HR managers with accurate predictive analytics which determines
the future, mainly for the organizations seeking more proactive role in driving
business strategy. HR Analytics enables the HR Managers to make human strategies
that impacts the business results. Hence, it enables the HR to be more engaged
in the formulation of the corporate strategy.



To study the role of HR
Analytics in optimization of workforce.

To study the impact of HR
Analytics in the overall talent management through various available


business intelligence article (2011) states that globalization and changing
corporate dynamics has increased the trials to HR on how best to improve and
deploy an agile and highly-competent workforce while maintaining cost
effectiveness. Today’s business challenges mandate more than just greater
efficiency in the HR department and an HRM system rather requiring them to  increased their effectiveness and gain
through a comprehensive understanding of the factors driving workforce
performance Thus the emergence of a new digital technique like HR analytics has
touted to be the panacea for the HR in the organizations.

N and Ben-Hur S, (May9, 2013), in their article Turning Talent data into Talent
intelligence said that a decade ago Mckinsey declared that the war for talent
was coming and he’s statement was seems to be right. Globalization and shifting
population demographics has caused competition for talent is growing and making
it harder than ever for business to find the talent they require. Realizing
this problem every organization are turning into talent management and driven
to invest most notably. The article states that as demand for better talent
management is growing hence organizations are becoming more data – led hence
making people data become currency and Workforce Analytics need for every
organization.  The emergence of latest IT
software Workforce Analytics helps to gather, manage and use talent information
more effectively than ever before. These data has helped the senior level
management to gather information about their people with help of these
information future decisions is being made. The article states the example of
how Google has become the market leader and its way ahead of the curve when it
comes to people data. The system has enabled Google to develop comprehensive
database that captures the information about current employees’ attitude,
behavior, personality, biographical information and job performance enabling
Google to develop an algorithm for predicting applicants which are most likely
to succeed.  By using Analytics in the
organization talent management has become easier. This information has helped
in succession planning, managing talent pools, managing talent ‘on demand’
finally making the talent management streamlined and simple.

(2011) says that HR analytics empowers the managers to gain information about
different talents and then develop a strategy to deploy their expertise for new
business avenues and leadership development. It further provides information on
many important factors for the maximization of workforce analytics, which
includes defined workforce challenges, consistency in data collection and
making the platform easy to use.

book Moneyball: The Art of Winning Unfair Game by Lewis (2004) has provided one
of the greatest example on how data analytics has radically shaped the way we
understand how the organization works. The book describes how the General
Manager Billy Beane of Oakland Athletics Baseball team utilizes data to analyze
and predict baseball player’s performances. By using Analytics Beane assembled
a competitive team with cost a quarter of the player paid by the New York
Yankees but his team ended up winning same number of wins as its rivals the New
York Yankees but with less than half of its rivals cost. By using and relying
on metrics Beane predicted the number of wins and by using players whose skills
were not recognized by others he built a team making them unpredictable
players. By using Analytics for his recruiting strategy Beane changed the
recruitment tactics for the world.

Fecheyr-Lippens, Bill Schaninger, and Karen Tanner (March, 2015) in the article
Power to the new people analytics published in Mckinsey quarterly says that problems
of employee dissatisfaction
and retention can be tackled through  techniques
which are  used to mine consumer and
industry data. The latest data and
analytics buzz that are
coming from the field of advanced HR analytics, where the application of new
techniques and new thinking to talent management is becoming more main stream.
The implications are dramatic because talent management in many businesses has
traditionally revolved around personal relationships or decision making based
on experience(or performance evaluation measures)  not to mention risk avoidance and legal
compliance rather than deep analysis( involving quantitative techniques and
sophisticated softwares). These advanced analytics provides a unique
opportunity for human-resources professionals to position themselves as
fact-based strategic partners in the organization, using cutting edge techniques
to recruit and retain the great managers and great innovators who so often
drive superior value in companies. Many
leading organizations are already using advanced HR analytics successfully in
certain talent-management areas. A leading healthcare organization, for
example, has used analytical techniques to generate more than $100 million in
savings while simultaneously improving workforce engagement. The organization
found that highly variable and unequal compensation levels were disturbing
employees and driving high rates of attrition. Once the data analytics had
identified an optimal minimum and maximum compensation threshold, the
healthcare group increased the engagement and productivity of its employees
thus reducing not only their rate of attrition but also its total compensation
expenditures. Another company also reduced its retention bonuses by $20 million
and employee attrition with the use of predictive behavioral analytics. Through
this process the firms have found that limited investment in management and
employee training, and inadequate recognition, were the main drivers of staff
defections. Expensive retention bonuses, to which the company had resorted in
desperation, were simply an ineffective and costly Band-Aid. Many companies
conventionally try to tackle retention issues by conducting in-depth exit
interviews. The important advantage of the new analytics techniques over that
approach is that they are predictive, rather than reactive, and they provide
more objective information than the more qualitative findings of a one-on-one

In the article, A guide
to HR analytics in the Tech Target Search Financial Applications agrees to the
above article that Human Resources is stepping into the spotlight with
HR analytics. Traditionally, HR’s primary goals were to gather and maintain
records of employees’ personal and professional information, such as payroll,
health benefits and performance reviews etc. Now, the emergence of technology employing
analytical tools and techniques, thus encouraging the  HR managers to generate more meaningful
results through analyzing complex, heterogeneous data with many outliers and play
a more active role in the organization. The most important note is that HR
metrics are not the same as HR analytics. HR managers typically used metrics to
measure such data as turnover rates and sick days. With HR analytics, they can
gauge employee engagement and whether or not workers have the skills to reach
company goals. HR representatives can now exchange ideas with business leaders,
by finding out what they need and hire accordingly. HR analytics allows human
resources to interpret data, recognize trends or issues, and take proactive
steps with different departments to keep the organization running smoothly and
profitably. HR analytics has pushed human
resources into more active and involved role in organizations’ planning and objectives
and making them a strategic partner. Organizations are also now turning their
attention to employee engagement with HR analytics, abolishing unreliable
surveys and using sentiment analysis to measure engagement in real time.
HR analytics software has allowed the
organizations to model their workforce and
measure employee engagement with sentiment
analysis. Besides data quality and analysis benefits, analytics is critical to
continued relevance of the HR profession because employees are not always
willing to be forthright when they answer workplace surveys provided by their
employer, the data is not always reliable. With the help of the data from the
customer relationship management (CRM) HR can assess if the employee is really
performing in the job. Social media and sentiment analysis are tools that
organizations use to measure customer satisfaction, and they could prove just
as useful in measuring employee engagement.

Another article by Beeline (2012)
Workforce Analytics, how to define measure and drive productivity in today’s
organization, describes the standard to identify the people who bring the most
value and to cultivate and motivate is satisfied by HR analytics. The
challenging economy in today’s world is forcing organization to have its HR
policies and strategies align with its overall business goal to gain
competitive edge over its opponents.

John Sullivan (February 26, 2013) in the article How Google Is Using People
Analytics To Completely Reinvent HR discusses how Google has moved up from
being the youngest to being the top business leaders in the present market.
This has been possible as Google has used people management strategy that is
the result of its software “People Analytics”. New path firms dominate by producing continuous innovation.
Google has learned that continuous innovation cannot occur until a firm makes a
strategic shift toward a focus on great people management. A strategic focus on
people management is necessary because innovations come from people, but
innovations can’t be maximized simply unless the organizations are capable of
recruiting and retaining these innovators
and endless support also has to be provided to them with great managers and an
environment that supports innovation. The simple foundation of “people
analytics” approach is that accurate people management decisions are the most
important and impactful decisions that a firm can make. A firm can not simply
produce superior business results unless the managers are making accurate people
management decisions. Each one of business decisions is made by an employee.
Hence the hire and retaining of these employees needs to be managed more
accurately and for doing so proper data is needed, otherwise it can only assume
that they will make mediocre decisions in each of these important business
areas, as well as in people management decisions. Hence Google after changing its
strategy in adopting People Analytics has proven to be the greatest strength
pushing the organization to become the market leader in the short span of time.

Suzanna Colberg (March 26,
2016) in her article about How ‘People Analytics’ is Redefining the Way
We Work, Live, and Hire says that the need for people analytics within an HR
function has been a discussion that has been on the table for the past several
years. Extensive digital and cultural changes in the modern workplace have
begun to reshape and redefine both the structure of organizations as well as
the culture of the workplace and, in many cases, the work itself. Now organizations
are relying more heavily on the data to find, hire, and manage talent.


great management thinkers have been harping on the fact that managing workforce
or human resource is the most vital, most crucial and the most difficult job
for any organization. Theories and practices have come up and evolved to
understand and better manage the workforce as it can be the game changer or the
edge that an organization needs to overtake it competitors. The latest being HR
analytics which is considered to be the next big thing in the world of ever
evolving HR. By reviewing the literature it can be inferred that human resource
management has been taken to the next level where HR is no longer just a
function but it contributes to all the functions in the organization with a
primary focus of enhancing organization performance.
Therefore, to have a competitive edge over its competitors, strategic planning
has become more critical for business units and subsequently for various HR
function as well. By adopting HR Analytics to govern the decisions making and
strategic development processes, new opportunities has arrived which are
applicable to all core HR processes such as talent acquisition, attrition, risk
management, succession planning, retention, compensation planning, and capacity
planning. By using HR analytics organizations have taken the guess work out of
the employee management by means of leveraging analytics to improve their
methods of attracting and retaining talents, connecting their employee database
to business performance which has help them in differentiating themselves from
their competitors.


A guide to HR analytics in the Tech Target Search Financial Applications http://searchfinancialapplications.techtarget.com/essentialguide/A-guide-to-HR-analytics
2012. Workforce Analytics: How to define, Measure and Drive Productivity
in Today’s Organization, Retrieved on 31st October 2014 from
A. (2011) Maximizing workforce analytics, HR Professional, Vol 28, Issue
2, pp 24.
Fecheyr-Lippens, Bill Schaninger, and Karen Tanner (March, 2015) in the
article Power to the new people analytics published in Mckinsey quarterly

Colberg S (March 26, 2016) in her
article about How ‘People Analytics’ is Redefining the Way We Work, Live, and
Hire  http://www.business2community.com/human-resources/people-analytics-redefining-way-work-live-hire-01490914#6MDZkZlyZrmUDlYH.97

Oracle business intelligence (2011)
Oracle Human resource Analytics, article in Oracle data sheet

Oracle Human Resource Analytics, Build
an agile workforce Brochure, Retrieve from

Sullivan (February 26, 2013) in the
article How Google Is Using People Analytics To Completely Reinvent HR