Key Points

• Increased interest in HR analytics is driven by pull-based factors (demand for efficient use of resources, scarcity of talent) and push-based factors (advances in science behind analytics, advances in tools and technology)

• Even though interest in HR analytics is increasing, it is still at a nascent stage because of traditional HR mindsets, lack of internal talent within companies, high investment cost and high operational cost

• The emergence of focused solutions and third-party service providers is helping address challenges organizations face while implementing analytics in-house

• Companies need to consider these factors while going in for third-party analytics – engagement model, pricing model, SLA/ KPI, change management, governance and service provider selection