HR Analytics: The Strategic Power of HR in 2026 and Beyond
Maja Sušnik, Marketing Specialist
For years, HR teams have diligently reported on headcount, absenteeism, and turnover. But the question remains: are these metrics merely describing the past, or are they driving the business forward? In 2026, high-performing HR teams are no longer passive observers. They are strategic contributors, using people analytics not just to measure what happened, but to shape what should happen next.
At Gecko HRM, we believe this is the moment for a fundamental shift. As our CEO Marko Perme puts it:
“We’re still seeing too many reports telling us what happened, without connecting the dots to business outcomes or strategic goals.”
This blog is the first part of our new series about HR analytics and it outlines the three levels of maturity in HR analytics and explores how HR professionals can evolve from reporting historical data to driving measurable business impact.
Level 1: Reporting on the Past (Operational Metrics)
Most HR teams are familiar with operational reporting. These metrics are essential for compliance and administrative efficiency, but their strategic value is limited. Common examples include:
- Absenteeism rates
- Turnover rates
- Number of hires
- Training completion rates
While necessary, this data often lives in disconnected systems, spreadsheets, or dashboards with no clear link to business performance. As highlighted at the latest HR&M Breakfast in Ljubljana, this results in what Marko Perme described as the biggest trap in HR: “measuring only activities, not results.”
The danger? HR remains reactive, not proactive. Metrics become vanity data rather than decision-making tools.
Level 2: Measuring Process Effectiveness
The next stage involves assessing how well HR processes perform, not just whether they occurred. This is where HR begins to bridge operational activity with value delivery.
Key metrics at this level include:
- Time to productivity for new hires
- Conversion rates in recruitment pipelines
- Success rate in onboarding over 3 to 6 months
- Training ROI within 12 months
The panel at the HR&M Breakfast emphasised how quality of hire, onboarding integration, and recruiter KPIs must be seen as a continuous chain, not separate events.
Katja Katarina Zakrajšek from Loftware reminded us:
“Recruiting and onboarding must be integrated. The quality of the new hire is measured by the success of onboarding.”
HR systems like Gecko HRM can play a vital role here, with automated alerts for early warning signs and real-time performance signals.
Level 3: Strategic Insight and Business Impact
At the most advanced level, HR stops being a cost centre and becomes a business driver. Strategic people analytics provides decision-makers with:
- Leadership quality indices
- Impact of learning programmes on innovation
- Alignment of people KPIs with market expansion or productivity goals
These are not “soft” signals, they are quantifiable indicators that link directly to investor confidence, profitability, and resilience. The quality of leadership is best measured at the intersection of team sentiment, performance, and delivery.
Moreover, absenteeism, long treated as a social issue, must now be reframed as a financial one. 1% absenteeism = a measurable cost. Strategic HR presents such figures in business terms: invest in wellbeing or risk operational inefficiency.
The Catalyst: AI and Automation
Artificial Intelligence is no longer aspirational. It is now essential for freeing HR professionals from low-value, repetitive tasks, the “boring, expensive work.”
AI empowers HR teams to:
- Automate policy and process documentation
- Respond faster to employee queries
- Generate insights with real-time dashboards
- Support onboarding journeys with predictive signals
The impact is already visible. In technical roles, AI-enabled onboarding can boost productivity by up to 15%. Yet, many teams are not ready. As of 2026, over 60% of HR professionals report minimal AI adoption, and only 35% feel equipped to use these technologies effectively. (Source: AIHR, 25+ HR Statistics You Should Know in 2026)
This is a gap and an opportunity.
From Historian to Strategic Partner
People analytics maturity follows a clear trajectory:
- Operational: Descriptive, backward-looking, focused on compliance
- Process-Oriented: Diagnostic, improving workflows and efficiency
- Strategic: Predictive, aligned with financial and business outcomes
To reach this final stage, HR must close three capability gaps: data literacy, digital fluency, and commercial acumen. As discussed in our capability guide, these are no longer niche skills, they are the new baseline.
Success in HR is no longer just about employee satisfaction or low turnover. As Sabina outlined at the HR&M breakfast, true HR success lies at the intersection of three stakeholders: employees, customers, and shareholders.
Ready to Make the Leap?
Ask yourself: is your HR function still reporting what happened, or is it guiding what should happen next?
Or book a demo with Gecko HRM to see how we help HR teams translate data into action.
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