Definition
The application of data analysis techniques to human resources data to inform workforce decisions. HR analytics uses metrics such as turnover rates, absence patterns, recruitment effectiveness, and engagement scores to identify trends and support evidence-based people management.
UK Context
UK employers using HR analytics must comply with the UK GDPR and Data Protection Act 2018 when processing employee data. The ICO provides guidance on fair and transparent use of employee data for analytics. Automated decision-making that has significant effects on employees must comply with GDPR Article 22 requirements, including the right to human review.
Best Practices
- Conduct a data protection impact assessment before implementing new analytics initiatives involving employee data
- Ensure transparency by informing employees about what data is collected and how analytics are used
- Use analytics to support human decision-making rather than replace it entirely
Frequently Asked Questions
What data can employers use for HR analytics?
Employers can analyse data they have a lawful basis to process, including absence records, performance ratings, turnover data, recruitment metrics, and engagement survey results. Special category data (such as health information or ethnicity) requires additional safeguards under GDPR Article 9.
Must employees be told about HR analytics?
Yes, under GDPR transparency requirements, employees must be informed about what data is being collected, how it is being used for analytics, the legal basis for processing, and any automated decision-making. This information should be included in the employee privacy notice.