What’s HR Analytics?
Human Resource Analytics (HR Analytics) refers to an area of analytics that deals with people analysis and the application of analytical processes to the human resources within an organization in order to improve employee performance and retention.
HR analytics does not collect data about your employees performance at work. Instead, it is designed to give you better insight into each human resource process, gathers related data, and then use this data to inform decisions about how to improve them.
You can use HR analytics to answer these questions about your organization’s HR system.
- How high is your employee turnover rate?
- Are you aware of which employees are likely to leave your company within the next year?
- How much of employee turnover can be considered regrettable?
- The first question will most likely be answered by human resources professionals. It will be difficult to answer the second question if you don’t have enough data.
Professionals need to be able to analyze and combine data to answer the second question. Although human resources are able to gather a lot of data, they don’t know how to use it. Here’s the solution! It can be used immediately to analyze your human capital and help you make informed decisions. Active HR analytics begins when an organization uses the data to identify its problems.
Also read: Top Onboarding Software for Hiring New Employees
5 Types of HR Analytics
Employees are vital to any company’s success. This is obvious. It is clear that any business can attract and manage the talent of the best people, and use their resources to the maximum extent. This will set them up for long-term success.
These are 5 essential HR analytics that every manager should know:
1. Employee Churn
Large investments are made in human resources. This is true for all businesses and organizations. The process of assessing the turnover rate in your workforce is called employee churn analytics. Employee churn analytics can help predict the future and decrease employee turnover. Historical employee churn refers to data from the past that shows the employee’s churn rate in the period since their employment began. Both historical and predictive churn data are crucial for employee churn analytics.
The success of any business depends to a large extent on the skills and expertise of its employees. Capability analytics refers to the Talent Management process that helps identify core competencies in your workforce.
Once you have a clear understanding of these capabilities, you can use them as a guideline and compare them with the capabilities of your workforce to determine gaps.
3. Organisational Culture
It is difficult to change the organization’s culture. Your business’ culture is often a combination of unspoken rules, systems, and patterns of human behavior.
Organizational Culture Analytics is a way to better understand and assess the culture in your workplace. Once you have a clear picture of the culture in your company, you can evaluate it and track any changes. It is important to track culture changes in order to identify early signs of a toxic culture.
Revenue is affected by capacity. Capacity analytics is used to assess how efficient your workforce is operational. If you work in a company that designs clothes, do people spend too much time talking and not enough time doing the actual work? Or are they too casual about their jobs? This is called capacity analytics, which determines the individual’s capacity to grow.
Poor leadership is worse than no leadership. Poor leadership can lead to employee turnover, loss of time, and financial losses. This makes it difficult for employees to stay with the company and can prevent a business from reaching its full potential. Analytics on leadership analyzes and deconstructs the various aspects of leadership performance in a workplace. Data can be collected using qualitative research or focus group research.
Also read: Top 10 Management Books for Great Leadership
HR Analytics software
HR Analytics software is crucial to track your workforce. It allows you to collect and maintain data from different offices, departments, and roles. Here are some of the key benefits of HR Analytics software:
- Easy to use: These platforms or tools are extremely user-friendly and do not require any certifications or lengthy training. If you have any questions, demo videos, and help videos are available.
- Data analytics: Data are centrally compiled and presented on dashboards. It is possible to view historical and current data for various parameters, such as tenure, reporting, roles, etc. This allows managers to make informed decisions.
- Latest features: These software tools are regularly updated with new features, such as improved usability, security, reporting, and so on. Your platform can be customized to reflect your brand colors and needs.
HR Analytics Example
A human resource manager must map and collect all relevant data in order to get started with HR Analytics. As an example, suppose you want to measure employee engagement’s impact on the organization’s financial performance.
To draw inferences from these data, you will need to have data on employee engagement and financial performance. An employee engagement survey should be conducted by every organization at least once a year. This will allow you to collect the most current data about how engaged your employees are at work.
Based on this data, it is possible to identify key areas of work. This data can be used to do amazing things. When you have data that will help you make accurate predictions for the future, it is difficult to ignore.
You can also make predictions about the performance of different areas within your company. It doesn’t matter if you want to infer budget allocations for employee training or predict which employee will be the most successful. There are many options!
HR Analytics Dashboard
The HR Metrics dashboard plays an important role in Human Resource strategy and planning. It’s a tool that informs decision-making within an organization, especially for the Human Resources department. Let’s start with the basics. These are the top three functions of an HR dashboard.
- To monitor human capital: HR can track key workforce metrics and keep an eye on the activities within the organization by providing regular reporting. It is possible to anticipate new trends and address emerging issues before they have a negative impact on the business.
- Improve HR performance: A dashboard of HR metrics helps managers improve their performance at work. This report will inform managers of any major changes or developments within their teams. Consider, for example, that an accounting department is experiencing high turnover. Managers will be more inclined to place emphasis on employee retention. They also need to consider the time and cost involved in replacing employees if they quit.
- Tackle problem areas: A great tool to address problems with more transparency is the metrics dashboard. HR in an organization will pay more attention to a system that is transparent and well-known to everyone, the HR metrics dashboard helps to regulate transparency as the reputation of the HR will remain online.
QuestionPro understands the importance of tracking and reporting. Our customers and clients receive the latest generation of workforce analytics. QuestionPro Workforce’s HR Dashboard is your one-stop solution for all HR problems. Track:
- Employee activities
- Submit Feedback
- Managers can submit and perform reviews
Also read: 8 Best Free Dashboard Software for 2023
The Benefits of HR Analytics
HR Analytics can help your organization become more strategic. Data helps you address current issues and plan for the future. Let’s take a look at the benefits HR Analytics provides:
Enhance your hiring process
Talent acquisition is an integral part of your HR process. It is an ongoing activity. Your TA team is always busy, whether it’s hiring for a new function or a larger team. It is never easy to find the right candidate. When they do, it is a difficult task. One can only hope that everything goes smoothly and they are actually hired.
What percentage of candidates actually apply, and how many leave? Which job boards are most effective for you? What number of candidates are you required to contact in order to fill a job? These are just a few questions you can look into using analytics to resolve. These data will allow you to see the whole picture and fill in any gaps that may be causing delays.
It is becoming increasingly difficult to retain employees, particularly with the younger workforce willing to switch jobs often. Gather data, conduct exit interviews, and analyze the patterns to find ways to stop the attrition rate. HR Analytics will help you identify the causes of attrition and the best ways to prevent it from happening again.
Enhance employee experience
Managers and HR representatives must meet with employees frequently to find out what factors affect employee experience in positive and/or negative ways. This is an important step towards improving employee experience. It is often overlooked that employees experience begins at the point of hiring.
Before you hire a candidate, your first contact with them is crucial. An employee’s experience is the sum total of all experiences they have throughout their career. Every experience, every behavior, and every step counts.
Increase productivity in your workforce
Productivity levels will always fluctuate and there are many factors that can influence this. These include office infrastructure, workplace environment, team-mates, and managers, as well as job satisfaction. You will be able to identify the factors that are affecting productivity and take the necessary steps to correct them. Improve employee engagement to improve workforce productivity. Start by creating some employee engagement activities and ideas to increase the rate.
Enhance your talent processes
Talent processes go beyond pre-hiring, annual performance reviews, and hiring. Training, counseling, and recreational activities are all important. Each organization is different, but there are certain processes that should be used. These can include regular one-on-1 meetings, skip-level meetings, and so on. HR should monitor their talent processes and identify any bottlenecks or challenges, then work to fix them. Although it is ideal to meet employees, we also understand that this might not always be possible.
It’s a smart idea to conduct employee surveys. Get their input and feedback, and then work on them. Let them know that they are being heard. It doesn’t have to be an exit survey. You can also use it to find out what employees think about employee benefits and how the employee experience at your company. Also, you might want to know what improvements they would like to see.
Increase employee trust
HR Analytics gives you access to data that allows you to see the state of your organization and how employees perceive it. Data can help you identify problems and make improvements. It’s easy to see which processes are working well and which ones are not. Your employees will notice when you make changes to existing processes in order to improve them or introduce new ones.
Your employees know that their input is valuable and will be acted upon by the team management. This is essential to maintain trust with employees, which is a key element in employee engagement, success, and retention.
HR Analytics This does not necessarily mean spending a lot of money on software or putting together a large team. Start small. Talk to employees, take their feedback, include managers, involve different functions, create a plan, then share it with everyone. It is important to share the data with everyone to ensure that they understand it and offer suggestions to improve the employee experience.
You can use the data to create new initiatives, fix existing problems, or bring about positive changes within your organization. HR Analytics can help you improve employee engagement, employee retention and employee wellness, employee productivity, the employee experience, and workplace culture.