Why HR is one of the most data driven industries?

Why HR is one of the most data driven industries?

Human resources are rich in data. From the moment the professional comes into contact with the company, various information is collected. Let’s find out why HR is one of the most data driven industries

There are recruitment data, career progression data, training data, absenteeism numbers, productivity data, personal development analysis, competency profiles, and team satisfaction data for beginners only. In addition, in addition to traditional HR data sets, companies can now collect much more data – scan social media data, for example, or analyze email content to gauge employee sentiment.

Using HR data can be legally and ethically challenging, but incredibly valuable – probably the biggest asset the HR team has. Why? Because when HR data is used to improve decisions, make employees happier, and streamline processes, it adds value to the business.

In the past, a lot of HR data was not used or, if it was used, it was put into charts and tables for something like an enterprise performance package. Now, in the age of big data and analytics, companies are turning their data into insights, how to predict when employees will leave, where to recruit the most suitable candidates, how to identify and attract the right candidates, and how to keep them happy when they become. employees.

What is People Analytics?

According to Forbes, “People Analytics is the area that determines what are the best strategies and actions to take to ensure better employee performance.” Understand that employees are key to their organization and their happiness ensures better productivity.

Many companies still use general instincts and experience to determine who to hire, what to do for improvement within the company. People analytics can play an important role in helping managers use powerful data to find ways to hire and keep the right people. This kind of data analysis can also help companies reduce bias based on the personal preferences or experiences of the professionals in an organization.

How to collect data and have a data driven HR?

The Human Resources Department has always been collecting data, so you don’t need so much change within the industry. The way is to understand how this data has been used and apply it in a strategic way for the company.

Because of this, more and more human resources professionals are feeling the need for software to assist in data management, storage and analysis. Such as JobConvo, Recruitment and Selection software that saves data from selective process management, showing reports that help interpret and understand various details of recruitment, such as understanding which channels your candidates come from.



What are the most important HR metrics?

There are different ways to track metrics in HR. Through management software, surveys, follow-up data and etc. We separate the ones we consider the most important for HR:


Absenteeism Index:

  • It is the measure of the average absenteeism rate as a percentage of total business days among all employees.
  • It is a very important HR KPI as it illustrates employee motivation and engagement in their work and overall in the company. Workers with low motivation and engagement are much more likely to miss.
  • It’s important to look at this metric over time and reduce it, because it will inevitably affect your business: either in the company atmosphere or overall productivity, in the end your finances and overall business well-being will be at risk.


Cost per hire:

  • It is the metric that measures the amount of resources you invest for each new employee you need. It covers all recruitment costs (advertising / marketing, referral incentives, recruiter time cost by reviewing and selecting CVs and then conducting interviews) through training (manager / instructor time cost, materials and time cost of a new employee).
  • These costs accrue and may weigh on a company’s budget, but it is important for the company to understand that the recruiter must find qualified talent that fits the company and that it is not a quick process. So even if investing can make the finance department angry, the potential for talent acquisition is always worthwhile.

Recruitment Conversion Rate:

  • The recruiter’s conversion rate is more an HR performance metric as it focuses more on Human Resources professionals and Recruitment and Selection methods than on employees overall.
  • This KPI measures the proportion of the total number of candidates hired at the end of the process.
  • There is no specific fee already set for efficient recruitment, it depends on your company, region and industry. But this is a metric you can use to take a closer look at all the steps involved and compare the different recruitment methods you have implemented to choose the most efficient one, while still taking into account other indicators (such as the 90-day retention rate). after hiring).
  • The main goal is to find the source that offers the best candidates at the lowest cost.

Time to fill:

  • This metric simply measures the time elapsed between when a job offer was published and when a new employee was hired for that particular job.
  • Like the recruitment conversion rate, it monitors the efficiency of the hiring process in terms of time spent with resources to fill a vacancy. He also advises to make realistic business planning, as the layoff or someone leaving the company should be dealt with and anticipated when possible.
  • A low number is always better; However, this should not be the main criterion. It is important to invest time to find the best fit and a good hire can cost you at first, but the benefits will always be better later.

Turnover Fee:

  • The turnover rate (or turnover rate) measures how many of your employees leave, voluntarily or not. It indicates the success of your company in terms of retention efforts and, as well as the time to fill, is a good help in planning talent replacement.
  • Preferably, people who don’t fit in with the company leave – and that’s not a bad thing for both parties. Usually, people leave their managers, not their job. That’s why you should track down the root causes if you have a high turnover rate and identify potentially problematic areas that need fixing.

Average length of stay:

  • This Human Resources KPI is a good indicator of your business burnout and lets you know if you are good at retaining talent. This HR metric tracks the average number of weeks, months, or years an employee stays in a company.
  • Measuring employee retention and satisfaction with their position, staff and / or managers is effective. You already know how much it costs to hire and train a new employee – so the longer he stays, the better! This way you can get higher return on your investments.
  • This metric is even more powerful when measured with other KPIs, such as turnover rate: a short period of time combined with high turnover announces nothing good and the reasons for this should be evaluated as soon as possible.

Training Costs:

  • This metric is applied when you want to measure how much you invested in hiring new hires and updating education. It is a useful metric for tracking employee development costs and making smarter decisions when it comes to developing their skill set after hiring.
  • However, training costs should not be limited to new hires – today, more and more workers want better job development and continuous learning in their position. Investing in an employee to develop his or her acquired or new skills is often a poorly considered option by HR management. Often the return on training costs is greater than the initial investment.


Because the HR industry ends up using much of its time in bureaucratic administrative jobs, the time they have to analyze and interpret the data they already collect is quite small. I believe you now have a better understanding of how to use people data for the good of your business and human resources strategy.

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