From intuition to data power: HR analytics as a game changer for better HR decisions

In today’s fast-paced world of work, the ability to make quick and accurate decisions is becoming increasingly critical to staying competitive. HR- and people analytics are revolutionising recruitment by putting data at the heart of strategic decisions and enabling companies to sharpen their recruitment strategies with unprecedented precision. The benefits are manifold, from increased efficiency and greater alignment with organisational goals to fostering a culture of transparency and strategic foresight.

The necessity of HR analytics in modern recruiting

HR managers are faced with the task of not only identifying and attracting the best candidates, but also retaining them in the company in the long term. The recruitment landscape has changed immensely in recent years with digitalisation and the transformation of the world of work. As early as 2022, the Linkedin Global Recruiting Trends Report highlighted that the ability to make data-driven decisions is one of the key factors for success in the talent competition. HR analytics offers the opportunity to gain valuable insights from a flood of data and thus to sharpen and optimise recruiting strategies in a targeted manner.

Benefits and functions of HR analytics tools for HR managers - and employees

The use of HR analytics tools is transforming HR from intuitive to data-driven decision-making processes. A study by Deloitte “2023 Global Human Capital Trends” highlights that organisations using advanced analytics can see up to 8% higher employee satisfaction and up to 21% higher productivity. These tools provide in-depth analyses of various aspects of human capital management:

  • Performance analysis goes beyond the simple identification of top performers in the company. It makes it possible to recognise the strengths, weaknesses and potential of your employees through detailed data analyses. By using advanced analytical tools, patterns in employee performance can be recognised and used to develop individual development plans. These plans can be tailored to the specific needs of each employee to maximise their development and productivity. Such an approach not only promotes employee development, but also contributes to increasing the overall performance of the organisation.
  • Fluctuation analysis is used to analyse patterns and reasons for employee departures. By identifying trends and common factors that lead to departures, organisations can take proactive measures to improve their retention strategies. This can include analysing working conditions, compensation, recognition and career opportunities. Through targeted strategies based on the findings of turnover analysis, organisations can increase employee retention and reduce the costs associated with high turnover.
  • Recruiting analysis has a decisive role in the area of talent acquisition. It enables companies to continuously optimise the applicant selection process and improve the quality of new hires. By analysing data on selected job posting media channels, effectiveness of job postings and performance of new hires, companies can refine the media selection to target candidates for future postings. The findings from recruiting analytics therefore help to identify effective channels and outreach strategies to reach the best candidates while making the recruiting process more efficient and cost-effective.
  • The use of surveys and feedback tools can help to create and maintain a positive working environment. By regularly surveying employee satisfaction and engagement, organisations can gain an in-depth understanding of their employees’ needs, desires and potential disruptive factors that can lead to dissatisfaction. The insights gained make it possible to take targeted measures to improve the working environment and corporate culture. Increased employee engagement not only leads to increased productivity, but also to greater loyalty to the company, which in turn reduces staff turnover and increases the company’s attractiveness as an employer.

Predictive analytics: anticipating and strategically influencing the future

Predictive analytics refers to the use of data, statistical algorithms and machine learning to predict the probability of future events based on historical data.In HR, this means a data-driven method to identify future trends in staff turnover, talent acquisition or employee engagement and enables more precise planning.Organisations that use predictive analytics in HR are said to be significantly more accurate in predicting staffing needs. In addition, organisations with advanced analytical capabilities have achieved 56% higher profitability compared to their competitors.

Predictive analytics helps HR professionals to overcome challenges in talent acquisition by providing insights into the future behaviour of applicants. This makes it possible, for example, to predict how many applications can be generated with a specific media selection.

In addition, predictive analytics enables targeted workforce development by predicting future training and development needs based on performance data.This leads to a more efficient allocation of resources for training programmes and the promotion of a learning organisation that continuously adapts to the changing demands of the market.


The need to integrate HR analytics into the HR strategy is undisputed. It not only enables data-based decision making, but also more accurate prediction and adaptation to future market developments and talent management challenges.

Companies that invest in this technology and the necessary expertise will not only increase their recruiting efficiency, but will also be in a stronger position to compete for the best talent. Continuously developing and adapting HR analytics strategies to the latest trends and insights is therefore essential for any forward-thinking organisation.

It’s not just HR analytics that will enrich the recruiting landscape in 2024 – employee wellbeing and artificial intelligence are also moving further into the focus of many companies and influencing the way candidates are approached, hired and promoted. In our latest webinar “New Year, New Recruiting Strategy”, we analysed the top HR and talent trends for this year and shared helpful tips and ways to get started.


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