5 Examples of How HR Analytics can Help to Improve Bottom Line Performance

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5 Examples of How HR Analytics can Help to Improve Bottom Line Performance

HR analytics is used in many businesses worldwide. The use and integration of HR analytics into a business structure offers significant benefits, with more and more businesses seeing a better return on their investments. So how can HR analytics help with improving your bottom line? This article will give you five examples.

How Your Bottom Line Can Be Improved By HR Analytics

1. Improves Hiring Decisions Throughout The Company

Many employers find the recruitment process a challenge. HR analytics has the potential to help improve your hiring decisions by utilising data collected from previous employee hire sessions.

Consider the following example. Say upon interviewing 15 candidates for a previous position in your company, you find that seven share similar traits that are not compatible with your company’s business principles or workplace culture. Utilising this information, you can adjust your company profile to automatically eliminate applicants who possess those traits from future vacancies thereby improving the efficiency of the recruitment process.

This helps to speed up the process by eliminating time spent assessing unsuitable applications, and allowing more time to focus on recruiting candidates who are more suited to the company’s culture, ethos and environment.

2. Monitors Employee Training Data

In most businesses, ongoing professional development is essential to attract and retain quality staff. If there is little offered in the way of professional development, it can result in employee attrition, a lack of direction, and poor employee morale. Integrating HR analytics may help in improving employee retention and workplace productivity.

Additionally, implementing an employee professional development program demonstrates that you are genuinely interested in helping employees to reach their full potential and encourages them to develop new skills and qualifications in their chosen field of expertise. Essentially, it’s a sign of a forward-thinking and innovative enterprise that values its employees and the contribution they make to the business.

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HR analytics can help in identifying the most appropriate professional development courses for individuals and to measure their progress. HR analytics provides a run-down of the effectiveness of the training and the cost per participant during the training course.

By understanding the percentage of employees who are using training solutions and the costs involved you can then work out whether it’s cost effective for your business.

3. Identifies Employee Retention Rate

High employee turnover could be a warning sign that should be addressed. While the reasons behind high staff turnover may be wide and varied, it’s essential to undertake a candid analysis of the company’s culture, structure, remuneration, and business model to gain an insight into the reasons behind staff attrition and to implement strategies to arrest the decline. HR analytics can assist in this process by providing data driven insights into the reasons why staff are loyal, or why they choose to leave.

The reasons for this may be due to a great number of things which may include lack of skills, underperformance, compensation issues, or other circumstances.

Through the use of exit and stay interviews, team assessments, and satisfaction surveys, you can find out potential issues within your company that may affect morale and your employees’ sense of belonging.

Proactively addressing these issues, rather than pretending they don’t exist, can help improve your overall bottom line as you’ll avoid incurring unnecessary costs associated with rehiring and retraining new employees.

4. Unlocking Potential

Just as high employee turnover should be improved and the hiring of poorly performing employees avoided, the identification, hiring, and promotion of the right team members are the primary focuses of human resources. HR analytics help to identify those traits that are predictors of success within an organization or a team, so we can focus our search for talent and avoid making mistakes that can be expensive and time-consuming to correct.

Quite often the right combination of personalities and skillsets can be the perfect recipe to magnify efficiency or output of a group. Instead of working by trial and error, analytics can refine the process so efficient teams can be assembled and unleashed more quickly. This process is about more than avoiding mistakes – it’s about empowering individuals to employ their skills the best they can, for the benefit of your company and your clients.

5. Drive by Data

In order to begin identifying those traits that play well off one-another, as well as those that cause problems or don’t fit your corporate culture, we first need to gather data – and lots of it. In the world of complex systems, large organizations with team dynamics, and fluid business situations, data is your friend.

There’s a reason that some of the largest organizations in the world invest tremendous sums acquiring or gathering data – data on their employees, their competitors, and their clients. Those organizations recognize the value of data in predicting behaviour – both good and bad – among their stakeholders and the public. To give themselves the best fighting chance, they arm themselves with as much data as possible and whittle it down into precious wisdom that guides their organization’s mission and shape its future.


HR analytics in a business can be beneficial to a company’s bottom line for many reasons. By gaining the valuable data that can be gathered from HR analytics you have the potential to really improve your company’s spending, productivity, and operations for the better. How would your business benefit from HR analytics?

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