Challenges Faced by Organizations While Implementing HR Analytics

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As every organization wants to make the right decisions with the use of data science, the popularity of HR analytics is also increasing. For any organization, its people are the most important because, without these professionals, there will be no working. Hence, managing, retaining, training, and keeping these people happy is the topmost priority. This can be easily achieved with HR analytics. You can know what is going on in your organization, what training you need to organize, and what type of talent you need to hire.

Hence, in this article, we will discuss the benefits of HR analytics and then see what challenges HR teams face in implementing it.

Benefits of HR Analytics

·   You can streamline the end-to-end HR process and move towards your business goals in a calculative and organized manner.

·  Overall performance can be enhanced as you will be hiring the required talent through HR analytics.

·  You will be able to catch up on the upcoming recruitment and other trends fast, which will ensure skilled people in the workplace.

·  You can find out the reason for attrition which will help you to reduce or eliminate the source.

·  You can figure out the right training courses and methods for your organization to encourage your employees for growth.

·   Lastly, you can coordinate and manage your staff well at different office locations.

Challenges of Implementing HR Analytics

1.  Data Variety

There are various sub-functions in HR and all these collect data separately in isolation. Integrating all these systems and finding a way to utilize it all together for actionable insights is a task. Achieving this is often the biggest challenge for many organizations. However, now, many dedicated systems are being developed to integrate data.

2.  Mindset

Many businesses fail to implement analytics in HR because they think of the HR department as a supporting role. While this may be true in some cases, in most industries, HR keeps your organization going. This department keeps your employees happy, encouraged, and productive.

3.  ROI

A lot of organizations fail to generate high ROI after implementing HR analytics because they fail to predict future occurrences. Most HR analysts will ensure that they have provided actionable data on the previous or ongoing condition of the company. But, they fail to predict what the future might bring and what actions can be taken to reduce the negative impact.

4.  Data Quality

All the data collected is mostly in the raw, unstructured form, which means that organizations need to refine this data first to analyze it. Cleaning this data or acquiring quality from this data is essential before attaining insights. This poses a major drawback in front of many as the infrastructure for data cleaning is hard to implement.

5. Skill Set

There are few analysts who also have knowledge of HR. For HR analytics, it is important to have a person on-board who has knowledge of HR functions as well as data science. Both these combined together gives great results.


HR analytics is a blessing for the HR department. It gives you the ability to analyse retention methods, find out attrition issues, hire talented professionals, and encourage employees for growth. You can achieve so much with just HR analytics in your organization. If you are able to eliminate the above challenges, you can improve the productivity and ROI of your business and see your growth graph take an upward turn.

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Rekha Jain

Rekha Jain

Vice President - Corporate Sales at Paysquare Consultancy Ltd.
Rekha has over 15 years of experience in providing payroll solutions across different industries. She has been pivotal in the growth strategy at Paysquare, both pan-India as well as in international locations. She is skilled in Personnel Management, Business Development, Employee Engagement, Recruiting, and HR Policies.
Views expressed are personal
Rekha Jain

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