International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS), 2014, Vol 2, No.1, 87-91. 87 Available online at http://www.ijims.com ISSN: 2348 – 0343 Impression of Financial Measures in HR Analytics Weena Yancey M Momin , K. Mishra School of Management Studies Babasaheb Bhimrao Ambedkar University, Lucknow, India Abstract In today‟s compet itive world, business is all about investments and revenues. Every function of business can be calculated in numbers, then why should HR be left behind. The paper explains how financial measures help the HR mangers to justify every investment made to human resource project. The gap has been filled with the help of HR analytics which transform the raw HR data into insightful information with help of financial measures. HR analytics designed with financial measures helps the Senior HR management to quantify the value of human resources which justifies the investments backing up with the hard reliable evidence. Financial measures along with HR analytics help the HR management to produce net benefits gained from the initiative. This paper gives the overview on how financial measures aids the HR managers to justify the investments made on the human resource projects. Key Words: HR Analytics, Financial measures, Human Resource Management, Predictive analytics Introduction Human Resources are a vital part of the organization. Managing human resources is the toughest challenge any organization has to face. But with the emergence of the new IT based technologieslike HR or Workforce Analytics software, managing and quantifying the value of human resources has become t outed to be the panacea of all the problems regarding measuring the attributes of human resources. In today‟s tough economic scenario, aligning the HR strategy with the overall business strategy is the need of the hour. In order to do that, HR analytics aids the HR managers to align their HR policies and strategy with the current business goals. HR analytics helps the HR managers to make strategic human capital decisions that will optimize the performance of the business. HR or workforce Analytics can be defined as the integration of quantitative data along with statistical tools and modeling in order to mine the data and transform it into actionable business intelligence to make a fact based decision. Human Resource Analytics is also a communication tool that brings the data together from different sources to paint a cohesive and actionable picture of current conditions and likely futures. It also gives a better and more precise insight on how various factors impact the workforce and organizational performance. HR Analytics helps the top management to make a fact based decision based on these absolute data for predicting the future likelihoods like it helps to relate what we know to what we do not know, compares what happens yesterday to what will probably happen tomorrow. Importance of HR Analytics: HR analytics plays a vital role in every organization. It helps the Senior HR managers and top management to keep a track of what is going on with the workforce of the organization. The significance of HR Analytics in the organization is  Helps the top management to make a fact based decision with hard data evidence.  Integrates the HR strategy with the overall business strategy and helps in better performance of the business.  Conveys better visibility into workforce and talent data which enables the managers to make better decisions.  Helps in predicting the future workforce planning and reduce attrition rate by giving opportunity to design better compensation plans  Helps in analyzing the gap in the workforce requirements and thus aids in designing required workforce planning  Helps to understand recruitment of right people at the right position. Perceived Benefits of HR Analytics: The use of HR Analytics benefits HR managers and top management in various ways. Namely:  HR Analytics helps in improving overall profitability through more effective workforce cost control.  The use of HR analytics also benefits the front line managers to improve employee performance and manage headcount.  HR analytics offers a comprehensive, real time and enterprise wise insight for all users, enabling fact – based actions and intelligent.  HR analytics streamlines the internal HR systems of the organization.  HR analytics focuses on improving the performance and productivity of employees  It also aids to harness talent identification, recruitment, development, retention and workforce planning.  It helps especially to predict which high performers are at risk of leaving the company before they walk out of the organization.  HR analytics enables the managers to have better understanding on how staffing levels, pay-for- performance and employee performance correlate to employee retention.