Human resource (HR) analytics, sometimes called “people analytics,” is the use of data within an organization to analyze and improve employee performance and retention. Just as in other areas of business analytics, the advent of the big data era has created new opportunities to harness data to accomplish important HR goals more efficiently and effectively than traditional approaches.

For example, an analytics-based approach can aid in talent management by enabling HR professionals to proactively target the best candidates for a job through digital platforms like LinkedIn or ZipRecruiter. Organizations can also refine their HR strategy and identify their most pressing recruitment needs through a data-based evaluation of current staff performance and skills gaps.

HR analytics can also help with performance management, thanks to the ability to tap into more granular and accessible data about the day-to-day work of employees. With greater visibility into which employees are more and less effective at their jobs, HR managers can better target interventions when an employee is struggling - or when they deserve to be rewarded. This data is also useful when it comes time for performance appraisal, as it establishes an objective, shared framework to discuss an employee’s performance.

At the end of the day, HR is still fundamentally about managing people and interpersonal relationships. However, the ability to ensure that important HR decisions are informed by data and not just subjective feelings about employees can be a boon to managers and personnel alike.

A background in HR analytics is increasingly important for a career in human resources, given the ability of this data-driven approach to improve day-to-day operations as well as long-term strategic HR decision-making. An understanding of this field is particularly indispensable in large corporations or tech sector companies where it is increasingly expected that all major business decisions should be based on hard data whenever possible.

With a median annual pay of $113,300 per year according to the Bureau of Labor Statistics, human resources manager is a highly desirable job, making this skill-set quite valuable. These jobs are also expected to grow faster than the national average over the next 10 years, as companies continue to learn the importance of recruiting and retaining talent

Beyond HR management roles, a basic familiarity with HR analytics is also increasingly important for CEOs and other C-suite positions. As with the rise of business analytics in other areas, it is no longer necessary - or, in some companies, acceptable - to make important decisions based solely on “gut feelings,” and hiring and firing employees is no exception.

Certainly. Whether you’re just starting a career or are a seasoned HR professional wanting to keep up with trends in your field, Coursera has a wide range of courses and Specializations to meet your needs. In addition to courses in HR analytics and people analytics, you can also find opportunities to hone your skills in related fields like data science and human resources more broadly.

With the opportunity to learn remotely at top-ranked schools like the University of Pennsylvania and the University of Minnesota, you won’t have to settle for a lower quality education to learn online through Coursera. These online courses are also available at significantly lower tuition than on-campus students, making this a great investment in your future regardless of the current stage of your career.