An HR Business Analyst analyzes human resources (HR) data, processes, and systems to improve workforce efficiency and decision-making. The role bridges HR and business operations by improving processes through data analytics, reporting, and HR technology.
HR business analysts gather and interpret data to support recruitment, performance management, benefits administration, and workforce planning.
Key responsibilities of the HR business analyst
Collecting and interpreting HR metrics and workforce data
An HR business analyst’s core function is the collection and assessment of meaningful HR data. This involves analyzing hiring trends, employee turnover rates, engagement levels, workforce productivity, and other aspects of the organization’s human resources. The HR business analyst then generates comprehensive reports and creates informative dashboards to provide insights to leadership teams. These insights help guide strategic decision-making and improve overall HR processes.
Google is a leader in creatively using HR data to drive overall business success. The “people operations” team at Google analyzed workforce data to determine which characteristics make successful managers, developed algorithms to predict employees who are likely to leave, and calculated the monetary value of top-performing talent.
What skills and qualifications are needed?
- Data analysis and reporting expertise. Proficiency in HR analytics, workforce data modeling, and predictive analysis.
Identifying HR process inefficiencies and recommending solutions
An HR business analyst works to continuously improve existing HR processes. To do this, they assess existing HR workflows, seeking opportunities to streamline operations, improve efficiency, and reduce unnecessary costs. For example, if an analyst discovers that the time it takes to hire an employee is too long, they will work to find which components of the hiring process are inefficient.
An HR business analyst may recommend AI tools to reduce inefficiencies. For example, AI can speedily review those documents instead of having an HR staff member manually read each cover letter and resume. AI can also help save time by scheduling interviews, conducting screening calls, and answering job-related questions from candidates.
Using AI for HR tasks has numerous advantages, but there are significant drawbacks, too: AI can be as biased as the software developers who created it. “Having AI that is unbiased and fair is not only the ethical and legally necessary thing to do, it is also something that makes a company more profitable,” Sandra Wachter, Professor of Technology at Oxford, told the BBC.
What skills and qualifications are needed?
- Problem-solving and process optimization skills. Ability to identify HR inefficiencies and implement data-driven improvements.
Forecasting workforce trends and talent management strategies
A wealth of HR data can be used to identify organizational trends and predict outcomes. HR business analysts use internal and external data (economic and demographic data are particularly useful) to anticipate attrition rates and hiring needs, conduct succession planning, and plan for talent development. These efforts will only succeed if they are aligned with business growth objectives.
An example of this type of predictive work is Gartner’s “9 Future of Work Trends for 2025”, which outlines the top workforce-related changes HR professionals will likely encounter soon.
Using data to ensure compliance and risk management
Like all HR professionals, HR business analysts help manage legal and reputational risk by ensuring that their organization complies with applicable rules and regulations. They monitor adherence to labor laws, equal employment policies, and benefits regulations across different regions and jurisdictions.
By analyzing workforce data, these professionals can identify potential HR risks, such as improper storage of employee personal data or unequal payment for the same job due to gender or other demographic factors, before they become significant. This proactive approach helps companies maintain legal compliance, avoid costly penalties, and foster a fair and inclusive work environment for all employees.
In some jurisdictions, legal penalties can be particularly costly. Businesses with customers in the EU must ensure that their storage and use of employee data adheres to the General Data Protection Regulation (GDPR). The penalties for infringing EU residents’ data rights are severe. According to DLA Piper’s 2025 GDPR Fines and Data Breach Survey, US$1.26 billion in fines were levied against businesses in 2024 for noncompliance with GDPR.
What skills and qualifications are needed?
- Strong communication and stakeholder management. Ability to translate complex HR data into actionable business insights.
Implementing and optimizing HR software solutions
A primary role of HR business analysts is managing an organization’s HR tools, particularly human resource information systems (HRIS). They work extensively with Workday, Oracle, SAP, Velocity Global, and other platforms to configure, customize, and improve HR processes across the organization.
These professionals also manage software implementation projects, translate business objectives into technical requirements, and ensure seamless integration between various HR technologies and existing systems. A significant part of their responsibility involves maintaining data integrity, security, and accuracy across all systems.
These analysts will become even more pivotal as increasing numbers of HR departments turn to HR software with AI components or other AI tools, like in-house generative AI systems or public ones like ChatGPT. According to the Society for Human Resource Management (SHRM), “of the 1 in 4 organizations that use AI to support HR-related tasks, nearly two-thirds only began doing so in 2023.” In other words, the use of AI in HR is in its nascent stages, so HR business analysts are poised to help their organizations either begin using the new technology for the first time or further leverage it to their advantage.
What skills and qualifications are needed?
- HR technology and HRIS knowledge. Experience with HR software, ATS (applicant tracking systems), and business intelligence tools.
HR business analyst vs. other HR roles
The analytical and strategic nature of the HR analyst role distinguishes it from HR generalists and HRIS managers.
- HR generalist. HR generalists handle daily HR tasks, while HR business analysts focus on workforce data and process optimization.
- HRIS manager. These HR professionals specialize in HR technology systems and implementation, whereas HR business analysts analyze HR data to optimize strategy and decision-making.
FAQs
What does an HR business analyst do?
They analyze HR data, identify process inefficiencies, and provide data-driven insights to improve workforce planning and HR decision-making.
What skills are required to be an HR business analyst?
Data analysis, HR technology expertise, problem-solving, business intelligence tools, and HRIS proficiency.
What certifications are preferred for HR business analysts?
Certifications can include the Society for Human Resource Management’s Certified Professional (SHRM-CP), the HR Certification Institute’s Professional in Human Resources (PHR), or HR analytics credentials.
How is an HR business analyst different from an HR generalist?
HR generalists focus on day-to-day HR operations, while HR business analysts use data to optimize HR strategies and processes.
Why is HR data analysis important?
It helps companies improve hiring efficiency, boost employee engagement, and reduce turnover.
What industries hire HR business analysts?
High-demand industries include corporate enterprises, technology, finance, and healthcare. Multinational companies, in particular, rely on HR business analysts.
Global solutions, local expertise
Organizations navigating global workforce complexities require partners that transform operational challenges into competitive advantages. Velocity Global empowers these leaders through its Employer of Record (EOR) solutions, enabling seamless hiring, onboarding, and management of international teams while ensuring compliance with local labor laws in 185+ countries. By automating payroll, benefits administration, and immigration support, Velocity Global enables businesses to focus on scaling through international expansion. Consult an expert to learn more.
