Know the Key Areas Where HR Analytics could be Used


Over the past few years, organizations have been using data analytics to measure all of their business operations more efficiently. While the HR department was barely an “early adopter” of data analytics, but these days HR managers and directors are becoming more strategic in their job roles and putting more emphasis on data-centric activities and analytics tools that can aid them make better business decisions. For some HR professionals, adoption of data analytics has been an easy transition. While many of them still struggle to use human resource analytics tools. In today’s business environment, HR analytics can’t be overlooked, since it allows HR managers and directors to take better decisions.

Here Are Some Questions Which HR Data Analytics Help Find Answers to:
  • ·         How to improve productivity of a team?
  • ·         Predict and manage attrition rate
  • ·         Finding out the reason behind a high turnover in a certain department
  • ·         Predict the right people to hire for a specific role
  • ·         Skill-gaps in the organization and how to fill those
  • ·         How to attract a more diverse workforce?
  • ·         What drives employees across gender, age, country, etc.?
  • ·         Why is the top talent quitting at a higher rate than others?
  • ·         Does the performance rating system actually reflect employee performance?


Now, let us take a quick look at the key areas where HR analytics could be used

#1 Employee Engagement Analytics

As data analytics tools become more prevalent in businesses, employers are paying less attention on the end results and more on the leading indicators that can avert negative results from ever occurring. Employee engagement is one such metrics.
According to Tim Young, the Vice President of Workday, “employee engagement is a major factor to attract and retain talent – and remain at the forefront in the global market. Many research and survey reports show a direct link between employee engagement and corporate performance”.
This indicates that employee engagement is a vital factor of things like employee’s productivity, cost of a new hire, and turnover.

#2 Employee Recruitment Analytics

Much like marketers who use analytics to measure what channels bring in more leads, customers, and revenue, HR managers can use data analytics to put more emphasis on the channels that bring in the most (and the best) new hires. Until few years, HR managers have measured things like cost of hire and recruiting sources, HR managers nowadays are leveraging the latest technology to evaluate more complex relationships, including:
  • ·         Time to Hire By Channel
  • ·         Cost of Hire By Channel
  • ·         Most productive recruitment channels
  • ·         Attrition rates and reason for attrition
  • ·         Offer – Acceptance Ratio
  • ·         Offer – Acceptance Ratio By Channel
  • ·         Open Vacancies vs. Positions Filled
  • ·         Employee Turnover by Recruiting Channel

  • This gives HR managers a better view of their recruiting efforts.


#3 Employee Productivity and Performance Analytics

Metrics to consider:
·          % achievement of targets
·          Profit per full-time-equivalent (FTE)
·          Human capital return on investment
·          Employee productivity index
·          Performance differential rate
·          Unscheduled absence rate

A motivated employee is a happy employee, and a happy employee is always more productive and effective. How will you determine your employees are motivated to accomplish goals unless you measure the outcome?

Many business organizations measure the performance of their employees in a single yearly review. But, many successful organizations today employ continual feedback system, including regular reviews, goal setting sessions, pulse surveys, and ad hoc feedback via social media. Such things help you track performance, motivate employees, and develop your talent.

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