HR Analytics (People Analytics)

HR analytics, also known as people analytics, is the use of data-driven approaches to optimize workforce decisions. It involves collecting and analyzing HR data related to employee performance, engagement, turnover, and productivity to identify trends and inform strategic decision-making.

By leveraging HR analytics, organizations can improve hiring efficiency, enhance employee experience, and reduce attrition. Advanced analytics tools use predictive modeling, machine learning, and key performance indicators (KPIs) to measure workforce effectiveness and guide HR policies.

What does KPI mean in HR analytics?

KPI stands for Key Performance Indicator — a measurable value that shows how effectively HR is achieving key business and people goals.

In HR analytics, KPIs help track, analyze, and improve areas like:

• Employee turnover rate
• Time to hire
• Employee engagement scores
• Training effectiveness
• Absenteeism rates
• Diversity and inclusion metrics

By monitoring KPIs, HR teams can make data-driven decisions to enhance workforce performance, reduce costs, and align talent strategies with business objectives.