By now, you’ve likely heard countless times about Big Data and its transformative impact across industries. While it’s easy to point to digital leaders like Netflix or retail giants such as Amazon and eBay as early adopters, you may be asking a more practical question as an HR manager: How can your organization actually extract value from Big Data, and what does it mean for the day-to-day experience of employees?
Most experts agree that accessible, executive-friendly HR data and analytics platforms—complete with intuitive dashboards—enable managers to unlock value from the vast amounts of organizational and employee data at their disposal.
Let’s explore how HR data and analytics can make a meaningful difference: enhancing workforce management, improving employee retention, mitigating risks, and unlocking a wide range of other strategic benefits for your organization.
The Best Tools and Methods for HR Data and Analytics
Beyond simply collecting employee data, HR analytics delivers insights into organizational processes by evaluating available information, enabling executives to refine workflows, make informed decisions, and enhance overall operational performance.
According to a survey by Best Practice Institute, 82% of HR executives use analytics to identify the most effective training and development strategies for their top talent. Around 80% leverage analytics to pinpoint the traits that predict team leader effectiveness, while 73% report that their primary retention analytics goal is identifying which employees HR should prioritize for retention based on projected future contributions.
A variety of HR analytics tools and methods are available in the market, but the most commonly used include:
- Talent Analytics – Evaluates individual employee performance, potential, and development needs.
- Workforce Analytics – Examines overall workforce trends, engagement, and productivity metrics.
- Workforce Analytics and Planning – Combines analytics with strategic workforce planning to anticipate talent needs.
- Capacity Analytics – Assesses resource allocation and workload distribution across teams.
- Predictive Analytics – Uses historical and real-time data to forecast future trends, such as turnover or performance outcomes.
To highlight the strategic impact of HR data and analytics, many world-renowned organizations leverage one or a combination of these tools and methods to drive better talent management and operational outcomes.
About one-third of Google’s HR department is made up of data scientists who specialize across diverse analytic disciplines, including organizational psychology, operations, statistics, and even physics. These experts design and run experiments to generate deep insights, which inform innovative programs aimed at optimizing Google’s HR functions and overall workforce strategy.
Another illustrative example is Black Hills Corporation, a 130-year-old energy conglomerate that successfully doubled its workforce through HR analytics. Facing challenges such as an aging workforce, specialized skill requirements, and long training cycles for employees to reach full competence, the company leveraged workforce analytics to plan strategically. By calculating projected retirements, required new hires, and the specific talent needed for each role, Black Hills Corp developed actionable plans to mitigate risks and ensure workforce readiness.
Using the 70-20-10 Rule for HR Analytics Integration
One of the most effective ways to integrate HR data into organizational development is by applying the 70-20-10 rule. In human resource management, this framework helps determine the ideal balance of learning and development opportunities for employees. The breakdown is as follows:
- 70% Experiential Learning: Learning that occurs through daily tasks, hands-on practice, and real-world challenges.
- 20% Social Learning: Learning facilitated through mentoring, collaboration, and guidance from colleagues or senior team members.
- 10% Formal Learning: Learning delivered via structured programs, courses, and formal training sessions.
By aligning HR analytics with the 70-20-10 approach, organizations can ensure that development initiatives are data-informed, targeted, and effective.
Implementing the 70-20-10 rule enables HR leaders to foster a continuous learning culture by creating structured yet flexible development pathways, supported by team leaders and managers. This approach helps streamline learning across the organization while ensuring that experiential, social, and formal learning are balanced and effective.
SAP has applied the 70-20-10 framework across its departments for years, using HR analytics to design targeted learning programs. By integrating on-the-job experiences, social learning, and formal training into their development process, SAP has made continuous learning a core component of employee growth. The framework is also embedded in key organizational processes, such as annual development plans, ensuring that learning initiatives align with broader performance and career objectives.
Widely Used Software and Dashboards for Measuring HR Data and Analytics
HR analytics methods draw on multiple types of data to provide a comprehensive view of the organization. Some data reflects company-wide trends and operational metrics, while other data is specific to employees, capturing individual performance, engagement, and development patterns. By combining these perspectives, HR analytics delivers a holistic understanding of both organizational health and workforce dynamics.
To transform predictive analytics into actionable, prescriptive insights, organizations rely on a variety of input data types, including:
- Applicant Tracking Data: Resumes, keywords, and applications.
- Employee History: Records of tenure, promotions, role changes, and internal mobility.
- External Data: Company evaluations, salary surveys, and reviews from third-party websites.
- Learning Data: Internal and external LMS records capturing training and development activities.
- Employee Feedback: Informal and formal comments, including the “buzz around the office.”
- Performance Reviews: Evaluations and goal attainment records.
- Retention Data: Metrics on turnover, tenure, and attrition trends.
- Recruiting Data: Number of candidates, openings, and time-to-fill metrics.
- Salary Data: Compensation and benefits information.
- Surveys and Interviews: Engagement surveys, exit interviews, and structured feedback.
By integrating these diverse data types, HR analytics can move from predicting trends to prescribing targeted interventions that improve workforce outcomes.
To effectively measure and act on key HR metrics, dashboards are invaluable tools. They are designed to visualize performance, highlight trends, and pinpoint areas that require improvement. The following HR dashboards are widely used by leading organizations and enterprises:
- Workday – Comprehensive HR management with advanced analytics and reporting.
- Jobvite – Focused on recruitment analytics and talent acquisition insights.
- OfficeVibe – Tracks employee engagement, sentiment, and team performance.
- Visier Workforce Analytics – Provides predictive and prescriptive analytics across the workforce.
- SAP HR Dashboard – Integrates HR data with organizational planning and learning metrics.
- WorkmateHR – Offers performance tracking, attendance, and HR operational analytics.
- XCD HR – Cloud-based platform for workforce management and HR reporting.
These dashboards enable HR leaders to translate data into actionable insights, supporting strategic decision-making and continuous workforce improvement.
Many enterprises and large corporations still face challenges in adopting HR analytics methods. However, when leveraged effectively, actionable HR analytics empowers managers and leaders to turn talent data into strategic advantage—identifying new revenue opportunities, optimizing workforce costs, executing business strategy more efficiently, and proactively mitigating potential risks.
