Using the right tools is crucial to staying competitive. More so in today’s professional world than ever before. This article looks at the top 10 HR analytics tools that will help keep your organization competitive.
First, let us understand what HR analytics tools are:
HR analytics is the process of collating, processing, analyzing, and managing data related to human capital. The goal is to ensure that employee performance is optimum and shows the maximum return on investment.
There is a lot of data in HR analytics, from employee information to recruitment trends and data, employee engagement, payroll, policy, performance, attrition, and many other areas.
HR analytics tools help HR departments and management make well-informed decisions that benefit organizations to achieve their goals.
While integrating the latest tech and ensuring that your team is tech-savvy, is essential, it is important to have the right information when acquiring these new tools. This list isn’t organized in any particular order. The software you choose is based on your requirements.
Let us take a look at the top 10 HR analytics tools out there:
Here are the Top 10 HR Analytics tools in 2022
- Microsoft Excel
While this blog is about the latest and greatest tools for HR analytics, we must mention the basics. Some of the other tools on this list use MS Excel as a foundation as well.
MS Excel has the advantage of being well-known, easy to use, and easy to learn.
If you intend to use excel, it is worth taking the time and effort to train your team to use the software.
Here are a few tips that are bound to come in handy when using MS Excel:
- Using tables to arrange large files makes it easier to process the data and makes it easier to use.
- Keep in mind that formulas inserted in your excel file are recalculated every time a change is made. This could mean that your system hangs and could lead to loss of data.
- Use the Analysis ToolPak if you are planning to run advanced analytics.
- Make sure that formulas and data entries are correct. It is worth taking the time to double-check your work every few minutes. Finding what went wrong once all is together can be like looking for a needle in a haystack.
- Using pivot tables and the VLOOKUP function can make excel very handy.
Python is another excellent tool for HR analytics. The best thing about Python is that it is relatively easy to learn and use.
When using Python, it is also helpful to know about Pycharm and Spyder. These tools make Python more functional for data analytics.
Python is recommended for those who already have some exposure to it and those who want to get the work done without having to learn much.
R is among the most used HR analytics tools. It is considered the best when it comes to analyzing statistics and creating visual representations of those statistics.
It is perfect to analyze large sets of data. R can be especially useful in combination with R Studio. R Studio makes R more user-friendly and is an interactive IDE (Integrated Development Environment).
R comes with various packages that can be downloaded to make data visualization a lot more pleasant and easy to understand.
Tableau is considered by many to be the best BI tool available today. Like Microsoft’s Power BI, Tableau is also efficient at aggregating data from multiple sources and converting them into insightful visualized reports.
While it is considered better than many competing HR analytics tools, it is a fair bit more expensive.
- Power BI
As far as HR analytics tools go, Power BI by Microsoft has been among the top choices for a while. The software makes the process of aggregating data, analyzing it, and creating useful visualizations extremely easy.
Power BI can be spliced into multiple systems, such as SQL databases, machine learning APIs, and social media feeds. The software can aggregate data from various sources to create an extensive database that can then be analyzed.
Once this is done, a pivot table can be created, enabling the user to have a quick overview of the organization's undertakings.
This data can then be turned into a dashboard view, making it easier to comprehend, interpret and communicate that information to decision-makers.
- CPLEX Optimizer
If you are looking for software that doesn’t merely state the issue but also highlights potential solutions, this may just be the HR analytics tool you need.
CPLEX Optimizer is quite an advanced prescriptive analytics tool. Although prescriptive analytics tools are not commonly used, they can be highly beneficial to organizations.
Using flexible and high-performance data modeling, CPLEX helps HR professionals select the best course of action out of innumerable business decisions.
This could be as simple as whether or not to increase the number of distributors you have in a specified area or if the organization would benefit by having its wholesaler in the area, to more complex decisions such as choosing the best location and why.
Qlik is an aggregating data software. After gathering data, it creates reports and provides information based on the HR data entered. As an HR data analytics tool, Qlik is better used as a warehousing and dashboarding tool.
Visier is also a data aggregating software that works towards providing relevant information about your human capital. Various HR systems can be integrated and connected to a single BI tool.
As an HR analytics tool, Visier shows trends in the data and can gain valuable insights; it focuses on understanding what affects performance and productivity.
The tool has features that help predict attrition, internal job changes, amongst other features.
Tableau, Qlik, and Power BI are great tools to collate data, even in vast amounts. SPSS is the best HR analytics tool when it comes to analyzing that data. The tool does not require users to be analysts by profession; it is user-friendly and thus allows all sorts of users to understand the data it analyses.
SPSS is an excellent tool for companies that are not looking at investing heavily in analytical tools. It provides all the essential data without the complexity of many other tools.
- Oracle HR Analytics
This HR analytics tool is designed to work hand in hand with HR policies. This software also aggregates data and provides valuable insights on what can be done to resolve potential areas of concern.
The software delves into the problem and helps the users understand each issue in-depth. This HR analytics tool uses machine learning algorithms to help users understand what the data reveals, such as what is causing high attrition rates, etc.
Why Should You be Using HR Analytics Tools?
The answer is relatively straightforward, and it helps you remain competitive. Data is the center of everything in business today, understanding how it works and impacts your business is the key to making the right decisions.
You are looking at more intelligent hiring practices with the correct use of HR analytics tools. Understanding the past and what is happening now makes it easier to make the right decisions for the future. This enables HR professionals to hire quality candidates and focus on streamlining the hiring process.
Performance and productivity need to be under constant scrutiny while evolving strategies are created to maintain and improve employee performance and productivity. HR Analytics tools help understand what practices work best, how they can be implemented across the organization, and what kind of employee engagement should be carried out.
It can be difficult to get management’s backing on significant budget changes and budget decisions, especially when the prerogative is to keep costs low. Using HR analytics tools allows HR departments to possess the evidence they require to show the management the results of the change in budget and strategy.
Using HR analytics tools to support HR initiatives also gives management the confidence that their investment will see a return.
There are a host of HR analytics tools out there. It is essential to understand what device you need and what you are looking to gain from it. The main areas of focus of HR analytics tools are:
- Performance analytics.
- Recruiting analytics.
- People analytics.
- HR business intelligence.
- Attrition risk management.
- Candidate profiling.
- Fraud risk management.
While each of these tools is useful in its specific way, they all do need some technical knowledge. While training existing employees can be cost-intensive, it is also cost-intensive to hire the right talent with the right skills for the job.
A straightforward solution is to look at existing HR suites that have already found the best tools for the job and integrate their tools with the best in the industry to deliver optimum results for your organisation.
The top-tier HRM companies out there have years of experience and have found what works best for specific businesses. They won’t be looking to sell you their solution. Instead, they would find a solution that works with their methods and works for your organisation.
This means that you don’t need to have the specific technical know-how; you don’t need to invest in the capital for the various HR analytics tools you will need to remain competitive in today’s world.
Using these sorts of services allows you to scale up and down quickly without having significant impacts on capital investment in the medium to long term.
Take a look at the variety of HR service providers out there and choose the one that works best for you. You want to make sure that you take the time to go through a few demos to understand if they are the right fit for your organisation and its culture.
Keep in mind that data has become the most critical thing in the world today. How you use, and leverage data plays a huge role in deciding how your business stacks up against the competition.