In everyday business life, the terms HR metrics and HR analyses are often used to describe data processing and analysis in the HR department. However, there is often disagreement about exactly what they mean, and they are often mistakenly used as interchangeable synonyms. However, it's important to recognize that HR metrics and HR analytics have fundamental differences that shouldn't be neglected.

So what is the difference between HR analytics and HR metrics?

HR Metrics form the basis for HR analytics by aggregating a variety of data and information into specific key figures. However, metrics without context don't provide information about the cause behind the data. They only make it possible to compare different data points, such as changes in the fluctuation rate compared to the previous year. Metrics therefore aggregate information into key figures and make it possible to identify trends over time.

However, metrics alone do not provide root cause analysis and simply show the trend between different time periods or differences between different data points. Nevertheless, metrics are an important basic building block for successful analysis. In our HR metrics library, you will find the most important HR metrics from the areas of recruiting, retention, performance, engagement, DEI and strategic planning.

HR analytics builds on the metrics and data points to tell you the story behind those numbers. HR analytics provides insights into the reasons for changes in metrics, identifies trends and patterns, and provides specific recommendations for action for the future in order to steer metrics in the desired direction. HR analytics thus gives your data context and enables various stakeholders to draw the right conclusions from it. If you want to learn more about HR Analytics applications, check out our HR Analytics Use Cases.

The leap from HR metrics to HR analytics

Now that we have developed a common understanding of HR metrics and HR analytics, we want to show how you can successfully make the transition from metrics to analytics.

Step 1: Start with your data

As we already know, metrics aggregate a wide range of data into one key figure. To start with metrics, it's crucial to select the right, good-quality data. An appropriate data structure in HR systems and high data quality are the key components that should be improved before we invest in calculating metrics for HR reports. In our blog post Improving HR data quality for important HR analyses Find out how you can improve data quality.

Step 2: Understand the HR system landscape

This step may sound easy, but it's often a challenge. Collecting basic data is easy, but aggregating to key metrics is more difficult because data points are often required from different systems (e.g. from the recruiting system and the HR management system). Platforms like PeopleIX automate this process by bringing all data from your systems together in one place.

Step 3: Select the relevant metrics

The third step is to select the HR metrics that are most relevant to your organization. These indicators should be linked to corporate goals. A target value should be set for each metric, which can be used as a basis for future measures.

Step 4: Implement the right measures

HR analytics doesn't end with presenting analyses. It is important to derive the right insights and measures from the analyses and to discuss them with the appropriate business partners. In doing so, you get all important stakeholders on board and create the foundation for future corporate success with appropriate measures and their implementation.

HR analytics is much more than just HR metrics. It provides the right data for strategically important decisions, not just for HR, but for the entire company.

If you want to start with HR analytics in your organization, we have other exciting blog articles for you to help you do just that:

• People Analytics Strategy — How do you successfully implement it People Analytics?
• You are responsible for people analytics: But how do you get started?