HR Analytics – New Era of Human Capital Management (HCM)

Human Capital Management (HCM) or Human Resource Management System (HRMS) is a set of practice required for the process of human resource management. HCM assists organizations in workforce management, workforce optimization, and workforce acquisition. It also helps the employees within the organization to manage employment modules, including attendance, leave, payroll, hiring, training, etc. throughout the employee lifecycle.

In today’s technological world, the HR department is also becoming data-driven by adopting new enterprise analytical tools to monitor employee details, skills, and day-to-day activities. For redefining the metrics of HRM, enterprises are focusing on adopting more quantitative methods, i.e., HR analytics, to gain advantage from the available workforce data. By combining the data from 2 different sources, i.e., Performance Management System and Human Resource Information System (HRIS), HR professionals are utilizing Big Data analytics to identify employee-related factors that are driving business functions.

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HR analytics enables HR professionals to:

  • Create business-related opportunities
  • Enhance employee engagement and retention
  • Make better and effective decisions
  • Manage workforce-related activities
  • Leverage talented and skilled employees
  • Manage sourcing and recruiting criteria
  • Understand factors that are impacting employee performance
  • Move from operational planning to more strategic or tactical planning
  • Manage education and training expenses of an employee

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Companies offering HR analytics solutions:

HR analytics has now become a major tool for enhancing the employee as well as business productivity. Most of the vendors are offering cloud-based HR analytics software due to scalability and flexibility. Few of the vendors offering HR analytics tools include:

  • SAP
  • MicroStrategy
  • Oracle
  • IBM
  • Tableau
  • Zoho
  • Crunchr
  • Talentsoft Analytics
  • Sisense
  • Sage Software


Enterprises are using HR analytics to identify the impact of the HR department on business performance. HR analytics is helping HR personnel to get overall visibility into an employee lifecycle by analyzing the HR-related data, including training, recruitment, development, employee performance, and many other information.

– Sonam Chawla
ICT – Research Analyst
Infoholic Research