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The uses and applications of HR data

There is no doubt that HR data is essential and is a considerable resource for companies. But to make it useful and understand its potential, it is essential to define use cases and how it will be implemented. What can HR data be used for? And how do you apply this information within companies to get key insights?



The uses of HR data in companies


In the past, HR data was collected to confirm trends or establish observations about past events and behaviors. Now, the possibilities of using this data are more advanced; it is about using it to anticipate phenomena. Thanks to HR data, it is now possible to project the company’s future in order to define dedicated strategies. New uses for HR data have thus emerged.


Predictive use


Anticipating future situations, making recommendations, or identifying opportunities are all possibilities offered by using HR data. This predictive use has become the main challenge of HR data. In the context of permanent and accelerated transformation of organizations, this forward-looking processing of HR data represents a significant asset.


Strategic use


HR data provides valuable information to HR teams and managers, such as the key skills required for a given job, the impact of automation on the daily lives of employees, and the identification of jobs in short supply. Thanks to HR Analytics, they can then use this data to guide their strategic decisions (internal mobility proposals, implementation of skills development plans, recruitment, etc.).


Related: Why put data at the heart of your recruitment strategy?


Economic use


HR data can also be used to feed the reflections on the company’s performance and, if needed, to make the necessary adjustments to optimize productivity (changes in workforce, changes in organizational design, etc.).


It is important to note that this list of HR data uses is not exhaustive, as other uses of this resource may emerge in the next few years or even months. Nevertheless, whatever use is chosen, it is essential to ensure that it is consistent and appropriate to its objective to obtain relevant results.


Related: The challenges of HR data for companies



HR data applications in companies


Thanks to HR Analytics, the HR function now has more ways to understand how its business works. However, it is important to note that while HR data can optimize and accelerate the work of human resources, it does not replace the HR teams, who remain the true experts in their fields of intervention. First and foremost, HR data analysis tools support the HR function in its various missions.


Using HR data to improve recruitment


In the context of recruitment, HR Analytics allows recruiters to spot the decisive elements of each application at a glance and instantly shortlist the most relevant candidates for the position to be filled. In other words, it is a matter of generating position-candidate matches quickly and efficiently.


In addition to analyzing resumes, HR Analytics can also help evaluate candidates’ skills using tests.


By optimizing the work of HR teams on these two key aspects, HR Analytics can improve the quality of recruitment.


Optimizing talent management with HR data


Leveraging HR data also continues after hiring, as it is just as valuable for talent management. Some HR analytics tools can cross-reference employees’ experience and performance with career development prospects for a specific job or several jobs. This information helps HR teams implement development plans and career paths, enabling employees to flourish.


For optimal progression, training courses can be automatically suggested within the HR Analytics tools to allow employees to acquire potentially missing skills necessary to perform a new envisaged function.


By providing information on employees’ needs for development, HR Analytics optimizes career management and allows everyone, HR teams and employees alike, to reach their full potential.


Analyzing HR data to prevent and reduce turnover


Thanks to HR Analytics, HR and managers can detect possible links between different jobs and missing skills within the organization, to identify training needs. This training allows employees to become more efficient and fulfilled daily. And the more fulfilled they are, the more likely they are to be committed to staying with the company.


Related: Five tips for implementing a data-driven HR strategy


Boosting productivity with HR data


Company performance, productivity and profitability are also possible fields of application for HR data. For instance, after analysis, HR data can be utilized to highlight the main trends in workforce evolution in a given category of jobs. In this way, the organization can anticipate and implement the necessary actions to compensate for any skill shortages that may result from these changes via L&D or the recruitment of new employees.


As a result, HR data analysis, through its various uses and specific applications, can strengthen the competitiveness of companies – provided that they know how to implement a data-driven HR strategy in line with their objectives.

Find out more about HR data processing:

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