Human resources teams have access to more workforce data than ever before. From employee turnover and absenteeism to payroll, performance and hiring, businesses can collect a wealth of information about their people.
But having data is only the beginning.
The real value comes from turning that information into insights that help the business make better decisions. This is where HR analytics can play an important role.
By combining HR data with financial and operational information, businesses can gain a clearer understanding of their workforce and how it affects overall business performance. An ERP platform such as NetSuite can help bring this information together.
What Is HR Analytics?
HR analytics, also known as people analytics or workforce analytics, is the use of employee data to support better workforce decisions.
Instead of relying solely on assumptions or intuition, HR teams can use data to answer questions such as:
HR analytics can range from basic reporting to more advanced analysis. Businesses can start by understanding what happened, investigate why it happened, and eventually use data to consider what could happen next.
Why HR Analytics Matters
One of the biggest challenges with HR data is that it can become isolated from the rest of the business.
Employee information may sit in an HR system, payroll data in another application, financial information in an accounting system and additional workforce information in spreadsheets.
When these systems are disconnected, analysing the data can become a manual exercise.
An integrated approach provides a different perspective. For example, looking at employee headcount alone may tell you how many people work in the organisation. Combining headcount with revenue, expenses and other financial information can provide additional insight into workforce productivity and cost.
This can help HR move beyond reporting numbers and become a more strategic contributor to business planning.
The right metrics will vary depending on the organisation's goals, but common HR analytics measures include:
Employee turnover. Track voluntary and involuntary turnover and identify trends across departments, roles or locations.
Headcount. Monitor workforce growth and understand how staffing levels are changing.
Employee costs. Analyse workforce expenses and compare them against budgets.
Revenue or profit per employee. Connect workforce levels with broader financial performance.
Time to hire. Understand how efficiently the organisation is filling open positions.
Absenteeism. Identify patterns in employee absences that may require further investigation.
The value of these metrics increases when they can be analysed together rather than viewed individually.
NetSuite can help businesses connect HR information with the financial and operational data already being managed within their ERP environment.
With NetSuite SuitePeople, organisations can manage HR information alongside financial data, helping provide greater visibility into how workforce performance affects business performance.
Its HR analytics capabilities provide role-based dashboards and KPIs covering areas such as headcount, turnover trends, revenue per employee, expense per employee and profit per employee. These metrics can also be analysed by factors such as department, employee group, location or subsidiary.
This creates opportunities for more practical analysis.
For example, a business could compare workforce expenses across departments, identify areas with increasing turnover or examine how changes in headcount relate to financial performance.
The goal of HR analytics isn't to create more reports. It's to help answer better questions.
Instead of simply reporting that turnover increased, an organisation can investigate where it increased and look for patterns that may explain the change.
Instead of simply tracking payroll expenses, management can examine workforce costs in relation to budgets, revenue and profitability.
And instead of treating HR planning as a separate activity, workforce requirements can be considered alongside the organisation's wider financial and operational plans.
This is where an integrated ERP approach can provide an advantage. By connecting HR information with broader business data, decision-makers can gain a more complete view of how their workforce contributes to business performance.
Technology is only one part of an effective HR analytics strategy.
Businesses should start with clear questions and objectives, ensure their underlying data is accurate, and focus on insights that can lead to meaningful action. NetSuite's guidance similarly recommends starting with focused business questions and building analytics progressively from a reliable data foundation.
For organisations already using NetSuite, exploring its HR and analytics capabilities can be a practical way to bring workforce and business information closer together.
HR analytics can give businesses a clearer understanding of their people, workforce costs and organisational performance.
With NetSuite and SuitePeople, HR information can be connected with financial and operational data, helping businesses move from disconnected reports towards more informed workforce planning and decision-making.
Ogg can help businesses implement, integrate and optimise NetSuite to support their wider business requirements.
👉 Ready to get more value from your workforce data? Book a consultation today through the form below and let's discuss how NetSuite can support your HR, financial and operational needs.