HR analytics software allows human resources professionals to collect data and identity information pertaining to productivity. These tools combine business data with people data in order 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 help inform management how policy and structural changes will impact morale and performance. They can also inform HR professionals of 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: