Are projects doing well yet team members are not meeting performance standards? How employees’ absences affect your business? What are the expected returns from employee training? What was the attrition rate last year?
Do these numbers or reports make sense to a company’s CEO? Looking at few spreadsheets and explaining these numbers can be difficult for an HR manager.
That’s where HR data analytics and dashboards come into play.
HR Data Analytics and Data-Driven Decisions
Well, there’s no doubt that data-driven human resource management has gained immense popularity in the recent times. Many organizations encourage HR to obtain data analytics related to people-related processes – including recruitment, performance analysis, training and development, benefits, etc.
Does HR data analytics increase organizational effectiveness? Does it support better decision making? Or does it help in getting better return on investment?
HR analytics correlates people data and business data and establishes a connection between them. It helps managers, human resources and the leadership to understand meaningful data patterns of multiple HR processes and supports better decision making to improve those processes. HR managers often use HR data analytics to get deeper insights into what is happening in the workforce, how it is affecting the business and how business outcomes can be improved with data-driven decisions.
Why Organizations Need HR Data Analytics?
There are very high costs associated with poor hiring, inappropriate trainings or wrong compensation strategies. These may put organizations at risk and lead to inconsistent business outcomes. Unlike yesteryears, HR managers not only require to collect and track employee’s personal and professional details, but are expected to carefully analyse HR data to make well-informed and timely decisions.
HR analytics dashboards and data are used to measure employee engagement, and identify employees with the required skills to meet company goals. HR managers can easily interpret data, identify issues or trends and take suitable steps to streamline organizational people related processes. As HR needs to play an active role in planning and meeting organizational goals, HR analytics allows them to do it effectively!
HR data analytics help human resource managers to:
- › Evaluate and improve an organization’s productivity through employee performance-related decisions
- › Plan existing and future workforce requirements to give enhanced business performance
- › Identify, develop and nurture top talent through employee training and development
- › Identify main reasons and patterns of employee turnover
- › Manage applicant database efficiently
- › Understand how pay-for-performance, training and other elements boost employee satisfaction
Due to inadequate budgets, many organizations work in absence of automated HR software and data analytics tools. This keeps their business at risk. Organizations need well-designed, integrated cloud HR software to understand people and business data quickly. Using an HR software enables human resource managers to understand analytics better and apply best HR practices to improve organizational effectiveness.
HR Data Analytics to Boost Employee Engagement
Identifying ways to engage and retain top performers is not easy. The availability of data analytics may help HR leaders in many ways:
For instance, in an IT outsourcing firm, Jack is a top performer in the web development team and Maria is an average performer in the creative team. If the variable pay during pay-for-performance program is evenly distributed among employees (even when they have different performance levels), there is bound to be dissatisfaction. When top performers are not rewarded in extraordinary ways, it may dissatisfy them and cause disengagement.
If the cause of increasing disengagement in workforce are known, HR managers can make efforts to correct them while boosting motivation and increasing retention.
By using HR data analytics, decision makers can efficiently analyse outcomes of HR processes and make efforts to improve them while improving organizational effectiveness. Data analytics not only makes the HR better, but it makes business better!
To gain deeper insights into HR analytics, you may read these posts: