The Role of HR Analytics in Aligning HRM to Strategic Goals

This report analyzes the role of HR analytics in aligning Human Resource Management (HRM) with a firm's strategic objectives. It emphasizes how HR analytics utilizes data to improve staff performance and increase return on investment (ROI). The report defines HR analytics, its data collection methods, and its function in establishing connections between people and business data. The report highlights the importance of HR analytics in understanding the impact of the HR department on the overall firm. It also discusses the functions of HR analytics including procurement, optimization, compensation, and employee development. It provides examples of how HR analysts use HRIS programs, collect statistical data, and work with HR managers in making strategic decisions, and how HR analysts in companies like Woolworths align long-term business objectives with employee relations objectives, including training programs and employee satisfaction surveys. The conclusion emphasizes the role of HR analytics in making informed decisions to improve overall performance and achieve organizational goals, stressing the importance of data collection and analysis in HRM.

Running head: Data Metrics Reporting and Analytics
DATA METRICS REPORTING AND ANALYTICS
(Role of HR analytics in aligning HRM to an organization’s
strategic goals)
Word Count: 1000
Unit code:
Assignment number:

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Data Metrics Reporting and Analytics
The aim of the essay is to analyse the role of HR analytics in lining up HRM to a firm’s
strategic objectives. As commented by Vargas, Yurova, Ruppel, Tworoger & Greenwood
(2018), HR analytics is a part in the ground of analytic that involves using analytic methods
to the human resource unit of a company aimed at improving staff performance and thus,
obtaining a higher return on investment. Hence, the study focuses on identifying and
analysing the roles of HR analytics in linking up HRM to the strategic goals of a company.
HR analytics deal with collecting data on workers’ efficiency and aims at offering insight
into every process by accumulating data and then applying it to make appropriate decisions
about the way of improving the processes. HR analytics correlates people data and business
data that can facilitate establishing important links later on. The major aspect of HR analytics
is to gather data on the effect of the HR department on the firm as a whole. Building and
developing a relationship between HR activities and business outcome and then developing
strategies in accordance with the information are what HR analytics is everything about. For
example, the HR analyst in Woolworths involves developing a strong connection between
HR strategy and business strategy, so that the company goals can be lined to the individual
career goals of the employees (Wiblen & Marler, 2018). As opined by Marler & Boudreau
(2017), HR has essential functions that can be improved by implementing procedures in
analytics. These include procurement, optimization, compensating and developing the
employees of the firm.HR analytics can assist to dig into issues and problems surrounding
these needs and using logical workflow, guide the managers to respond questions and obtain
insights from information at hand and then make pertinent decisions and take suitable actions.
In the words of Angrave, Charlwood, Kirkpatrick, Lawrence & Stuart (2016), HR analysts
collect and examine information about jobs, costs, issues that affect their organisations. Many
HR analysts use HRIS or HR information system programs, which is a software package for a

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computer that facilitates these professionals managing their data more accurately and
efficiently. They collect statistical information on salaries for particular job titles. They work
in collaboration with the HR managers for deciding salaries for vacant positions. They also
involve selecting, interviewing and recruiting employees. They analyse the organisational
objectives and based on that, consider the special skills and personalities that can better help
the firm to achieve its business goals. HR analysts can also gather information for setting up
company policies and processes. For instance, an HR analyst expert in benefits and
compensation can ensure that their organisational policies obey with definite labour laws.
For example, the role of the HR analyst in Woolworths can be discussed. Woolworths
Limited that is one of the popular and biggest retail organisations inAustralia has 3200 stores
across Australia and NZ. The company focuses on formulating both operational and strategic
plans for recognising long-term objectives related to employee relation. Here, the role of the
HR analyst is to collect information on organisational issues and developing objective of ER
including changing job pattern, adopting new skills, competition for labour in the market. The
company emphasises on aligning the long-term business objectives with the long-term ER
objectives and implementing changes for enhancing employee coordination
(Wowcareers.com.au, 2018).
Further, Van den Heuvel & Bondarouk (2017) stated that, besides deciding salaries for a job
opening and recruiting talented employees, HR analyst involves in the designing training
programs for employees and analysing their job satisfaction. They carry out employee
satisfaction surveys for gaining information. Then, they examine the collected data and
suggest ways to the firm for improving and managing ER, morale and job satisfaction. As
employees are considered as the most important asset of a company, HR analysts find out the
reasons of staff resigning and use this information for strengthening ER with the existing

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employees and retaining them for life. Employees are the people, who perform the actual
tasks for helping organisations to achieve its corporate goals. Therefore, collecting data on
their confidence and satisfaction is critical for ensuring company success. Hence,
Woolworths has a dedicated HR department and the HR analyst works with the HR manager
for ensuring appropriate management of the employees. The HR department of the firm is
designed in such a way that helps to hire and developing talent, meeting the staffing needs
and training employees and economising.
According to Sharma & Sharma (2017), many HR analysts also involve developing budgets
by working with the directors and managers of human resource. During the procedure, the
HR analyst certifies that specific job duties are allocated to suitable employees. It helps to
maximise efficiency and outcome. They also decide which analysis tools are most
appropriate for enhancing performance. For instance, an HR analyst may decide that a 360-
degree evaluation process can work best that contains self-assessment for staff, interview
with colleagues and supervisory evaluation for more inclusive reviews. Based on thus,
different actions plans can be recommended for increasing employee ability to perform tasks
competently to achieve business goals.
For example, in Woolworths, three main levels are there, where practitioners, HR analyst and
line managers together or separately perform like operational and functions as well as
strategic levels. The HR analysts are engaged in HR and business planning. At the functional
level, along with the HR manager, the HR analyst carry out different types of activities for
ensuring employees are at the right place, at the right time and for the right cost
(Wowcareers.com.au, 2018).

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Data Metrics Reporting and Analytics
Thus, HR analytics have significant roles in aligning employees’ performance and HRM with
the organisational objectives. Without HR analytics, it is not possible to collect all the
valuable data on HRM and make HRM decisions effectively.
Thus, it can be concluded that an HR analyst is a person, who works together with the HR
manager in making decisions on the basis of the collected information. Information collection
on the issues, cost, HR activities, staffing needs and others that are affecting the business of
the company are the major roles of an HR analyst. By collecting and analysing HRM
information, HR analytics make major decisions for the improvement of the overall
performance and obtaining organisational objectives.

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References
Angrave, D., Charlwood, A., Kirkpatrick, I., Lawrence, M., & Stuart, M. (2016). HR and
analytics: why HR is set to fail the big data challenge. Human Resource Management
Journal, 26(1), 1-11.
Marler, J. H., & Boudreau, J. W. (2017). An evidence-based review of HR Analytics. The
International Journal of Human Resource Management, 28(1), 3-26.
Sharma, A., & Sharma, T. (2017). HR analytics and performance appraisal system: A
conceptual framework for employee performance improvement. Management
Research Review, 40(6), 684-697.
Van den Heuvel, S., &Bondarouk, T. (2017). The rise (and fall?) of HR analytics: a study
into the future application, value, structure, and system support. Journal of
Organizational Effectiveness: People and Performance, 4(2), 157-178.
Vargas, R., Yurova, Y. V., Ruppel, C. P., Tworoger, L. C., & Greenwood, R. (2018).
Individual adoption of HR analytics: a fine grained view of the early stages leading to
adoption. The International Journal of Human Resource Management, 3(2), 1-22.
Wiblen, S., &Marler, J. (2018). The Influence of Talent Concepts on Big Data and HR
Analytics Use in Talent Management. Academy of Management Global Proceedings,
(2018), 70.
WOW Careers: Jobs and Careers at Woolworths Group. (2018). Retrieved from
https://www.wowcareers.com.au/