More than ever, HR departments are generating more data, but at the same time they lack the capability to turn their data into valuable insights. Organizations which have invested in HR information software should strive to be in the position to generate reliable data and share them in a well-structured form to be used for data analytics.
Creating and maintaining a high performance business is challenging, but organizations that build capabilities in HR analytics out-perform their peers in quality of hire, retention and skills development. It goes without saying that people are vital to the success of any company. HRanalytics can help to provide businesses with the insights to attract the right competencies, recruit people with the right skills, manage talent effectively, as well as pinpoint any issues that adversely impact staff morale which can then be quickly addressed.
Below are eight powerful ways on how HR analytics can help your organisation.
1. Improving Employee Engagement
HR experts strive to improve employee engagement. Improving employees’ sense of belonging within the company can boost morale and productivity. However, the challenges remain in discovering the drivers that most affect their work engagement and how best to impact them. HR analytics can provide insights on how staffs are better engaged by measureable factors such as recruitment, performance, pay and benefits, enabling the HR department to look into changes to improve employee productivity. Feedback during appraisal can also provide relevant insights to improve company culture and create a better working environment.
2. Skills Development Analytics
The success of your business depends on the level of expertise and skill of your workforce. Since technology and job requirements are constantly evolving, identifying and communicating capabilities or core competencies needed is essential. Employees must be able to maintain and learn new skill sets to keep up with the business needs. This challenge can be addressed with a learning module that helps define individual learning plan based on competency of employee, career matrix identifications, or organisation goals.
Once you know what those capabilities you need for your organisation, you can compare them to the capabilities you have in place at the moment to see if you have any gaps.
3. Use HR Analytics to Plan
Benchmarking can improve performance. To be able to leverage on the result of data analysis to feed back into business strategy will be invaluable to your business. HR department can leverage on various KPIs to find the keys to retention or boosting workforce performance. Ensure the HR team has the right talent to drill and analyze into the pools of HR related data. HR analytics is more than just analysing; it should help you to plan ahead.
4. Easily accessible HR information to management
Management needs to be equipped with data and insights on what the workforce requires to improve efficiency and to achieve their best. HRanalytics will allow managers to easily gain valuable view into the workforce attitudes and performance. By studying the KPIs to determine what the productivity output per employee should be, they can easily identify the people who are struggling, the top performers, or the staff who are more likely to be happier when assigned to different tasks, thus identifying the areas of opportunity to optimise within workforce.
5. Employee turnover analytics
It costs companies a lot of money and time to hire the right people and train them. Studying into the staff turnover rates will help predict the future and also make better decisions to improve your staff retention. The relevant data could be coming from your HRMS system and information collected from employee engagement level, employee satisfaction index, exit interviews are also useful information.
6. Improve your hiring process
HR people needs to gain a good understanding of the metrics that make a successful hire and use that knowledge back in to the recruitment strategy. HR analytics helps to improve the quality of your hires, ensuring they have the right skill set for the job, and even monitoring the turnover for new hires to ensure the right people are supported with the right onboarding processes.
7. Workforce performance analytics Integrating
To win in your business, you need capable high-performing employees to thrive. Workforce performance analytics provide the assessment of individual employee performance and the insights to identify the good and the bad performers; and who may need some additional training or support to excel. HR system is sometime treated in silos, unavailable to other business decision makers. But it needs not be so.
8. HR analytics with the entire organization
HR analytics has applications that could help the entire organization. This data should not be viewed in isolation. For instance, the finance teams are increasingly involved in HR today, but in many cases they don’t have the data they need. Combining HR data with finance data can offer useful information to make better decisions and work more efficiently.
You may want to find out how your HR software vendor can provide HR dataset to sit alongside with your Finance dataset, which will give a lot of business value to the company as a whole.