Why should HR leaders care about HR Analytics
Your business’s human resources team is going to have to be people-oriented and in order to do so in the best way possible, they will need data. Instead of working on and making decisions depending on what their gut tells them, it is preferable to rely on data.
As of today, the HR field is observing a major shift in terms of technological use. HR analytics and big data are compelling components to invest in the best HR analytics software.
When the HR department has the opportunity to make strategic decisions and thus improve productivity, engagement, and retention rates of employees it benefits the business and aids its growth.
But what is HR analytics? How much do we really know about it?
Understanding HR Analytics
Also known as talent analytics, people analytics, or workforce analytics, HR analytics is a data driven method that gathers, analyses, and reports everything related to the human resources department
A wide range of HR metrics are available to be studied and thus improve the overall functioning of the business.
An HR analytics software offers hiring and talent insights, details on organization trends, and other employee related information that enables the HR department to make sound decisions.
How HR Analytics Helps the HR Department
A significant portion of the HR department for any business includes recording and storing employee data. But is this really enough in today’s world?
The idea is to turn this information into insight that can be used to make better decisions at a strategic level.
Let’s get a better understanding of how investing in the best HR analytics software can ultimately help your business:
When the hiring team has access to historical data of every potential employee, they can weed out candidates who might not have performed up to the mark. The recruiters can learn about every candidate through online databases, social media profiles, applications, records on other sites, etc. HR analytics helps recruiters identify the red flags in potential employees, like leaving organizations too quickly, problems with previous employers, or records of misbehavior in the past. These details would give the HR department the power to avoid hiring mistakes which may affect the business in the long run.
2.Improved Retention Rates
There could be a number of reasons why any employee would want to leave their job. If the HR team was able to identify the patterns and causes of employees staying or leaving. Depending on their reasoning, the HR personnel could offer solutions to make things better for said employee in the organization. The best HR analytics software has the potential to help HR professionals identify the gap between the expectations and reality of the employees through surveys, stay interviews, team assessments, etc.
Measuring productivity was tough in the past. Now, since almost every aspect of a business is data-driven, it has become easy. Employees can deliver their best performance since they’d have a better idea on how to manage their time and tasks at hand. HR analytics also allows improve their performance employees to reflect and thus based on the data collected in the previous months.
4.Calculating the Metrics
One of the best features of an HR analytics software has to be its potential to track a number of different metrics including revenue generated/used per employee, training expenses per employee, offer acceptance and rejection rates, attendance rates, termination rates, and much more. All of these metrics, in their own way, help the management make better decisions in the future.
5.Improved Employee Experience
A happy working environment is going to skyrocket the growth of the business. With HR analytics, it’s easy to know how your employees look at your business, in terms of work pressure, hiring process, culture, etc. The software will help you understand how employee morale can be boosted to improve their work life and create a unified employee front, thus growing the business.
The best HR analytics software is going to bridge the gap between your HR and finance department. A streamlined process combined with updated information available across all divisions is going to remove the task of running around trying to figure out the details. You can expect a consistent result and information from both the teams in terms of salaries, ROI data, etc., which will help the higher management in making rather quick and better decisions.
7.Identify Human Risk Capital
All of the data about your employee related risks are collected, stored, and analyzed. These include lack of qualifications, potential of an employee leaving before a particular term ends, compensation issues, and ongoing relationship with the management, etc. Ideally your HR analytics software will collect these metrics and have it ready to be used by the HR personnel at all times.
HR Analytics Driving Business Value
Employee experience is as important as customer experience.
Similar to how having data on customer behavior can help create strategies and improve customer satisfaction and thus capitalize on them, HR analytics allows businesses to help its employees.
Business outcomes can be improved vastly by learning that there’s a need to invest in reskilling to make the current staff competent enough to manage their tasks, or build a new revenue model that works in sync with the current market trends, etc.
HR analytics software makes use of the data generated on a daily basis to improve workforce profitability, optimize the hiring process, make informed decisions, and much more. It comes with a bundle of features that will have you making the right decisions at the right time.