HR analytics software helps human resources professionals collect, analyze data and identify important people metrics. These tools combine business and people data to identify the HR department’s impact on business performance. Companies use HR analytics software to identify inefficiencies, predict productivity, and optimize workforce organization. These tools provide companies with the insights necessary to manage their human capital and improve their return on investment.
Predictive components of this software help inform management how policy and structural changes will impact morale and performance. It can also inform HR professionals about the impacts cultural changes in the workplace could have on productivity. Some HR analytics tools also possess features to optimize the hiring process and identify candidates who will fit with a company’s culture. While some HR management suites and core HR solutions contain analytics features, they do not focus solely on HR analytics.
To qualify for inclusion in the HR Analytics category, a product must:
Collect people data on key HR performance indicators, such as DEI, communication, retention, performance, recruitment, labor, benefits, or payroll
Auto-generate customizable reports and dashboards
Evaluate risks, costs, and effects of HR policies
Monitor workforce development and goals
Generate insights for theoretical HR-relevant scenarios
