Gone are the days where HR professionals were seen as back-office administration support that simply focused on recruitment and payroll processes. The modern HR professional is now a key player in the business and a driving force in strategic decision-making.
But in order to really make an impact, HR professionals need to have access to the data that will drive these important business decisions. Simply relying on gut instinct, and our ‘third eye’ is no longer enough. C-Level executives want data – HR data that will help them understand the impact of their decisions, and make informed predictions on future strategies.
In fact, according to research conducted by McKinsey & Co, 70% of company executives site people analytics as a top priority. So it’s safe to say, HR analytics and the power of HR data are here to stay.
But as HR professionals, we weren’t trained in analytics, so it can be a daunting task to figure out how to make sense of all the data. We need an easy way to access and interpret HR data, so we can use it as a powerful tool for making intelligent and evidence based decisions.
That’s where living in the era of technology comes in handy. With HR software such as elementsuite, data has never been so accessible. In just a few clicks you can gain insight into employee engagement levels, productivity trends, and turnover rates.
But before we get into how exactly elementsuite can help you make the most of your HR data, let’s take a step back and explore what exactly HR analytics is.
What is HR Analytics?
HR analytics is the process of using data to develop insights and inform HR decisions. It’s about leveraging a range of HR metrics and data-driven approaches to find answers to questions related to workforce performance, productivity, retention – basically anything related to people.
At its core, HR analytics is about understanding the workforce and making decisions based on evidence rather than intuition. By combining data from various sources including payroll, time and attendance, performance management systems, and even other organisational data such as financials, you can gain an in-depth understanding of how the workforce impacts overall organisational performance.
Essentially, with the power of HR analytics, you can gain a clear view into the strengths and weaknesses of your organisation, and develop data-driven strategies that align HR with the overall business strategy.
Why does HR Analytics matter?
From understanding employee behaviour to predicting attrition rates – HR analytics serves as a powerful tool in making informed decisions related to people. With it, you can:
Improve Recruitment and Retention
According to CIPD research in 2022, the median cost of hiring senior managers is around £3,000, and the median cost of recruiting other employees is £1,500. This may not seem like much, but when you add in the cost of onboarding, training, and upskilling, these costs can quickly accumulate – that’s why recruiting and retaining the right talent is absolutely essential.
By leveraging HR analytics, you have the ability to identify retention patterns, understand which teams or individuals are at most risk of leaving, and uncover new ways of increasing employee engagement, satisfaction, and loyalty – which in turn leads to improved recruitment and retention rates.
Enhance Performance and Productivity
HR analytics can be used to better understand the links between employee performance and other factors such as work environment, working hours, and career development.
For example, HR analytics can be used to identify areas of underperformance, and provide insights into the root cause. This could include understanding which teams or individuals are underperforming, which skills they lack, and what kind of training they need. This data can then be used to develop targeted interventions that will help improve performance and productivity.
Better Workforce Planning
Workforce planning is all about having the right people, with the right amount of skills at the right place and time. As HR professionals we know this more than anyone, as most of us have been involved in recruitment and forecasting the number of staff needed for each shift.
With the power of data and analytics, you can take your planning and decision-making to a whole new level. By integrating various systems and gathering insights from data, you can identify patterns and trends that were previously hidden, which can help you make informed decisions and plan for future needs.
Whether it’s workforce planning, resource allocation, or financial forecasting, the use of data and analytics can give you the edge you need to stay ahead in today’s fast-paced business environment.
No more last-minute stress of begging other departments for additional staff. With HR analytics you have the data and insights to plan ahead, no matter what surprises are thrown at you
Increase Employee Engagement
Research from CIPD has found that organisations with a highly engaged workforce benefit from enhanced organisational performance, improved job satisfaction, reduced absenteeism, and lower turnover.
The benefits of engaged employees are second to none, but testing blind strategies and initiatives is like throwing money into the abyss. HR analytics takes the guesswork out of creating successful employee engagement strategies. From understanding how your teams are engaged to spotting individual team members who need a bit of extra support, you can create tailored strategies to improve the overall engagement within your organisation.
Improve Diversity and Inclusion
Organisations with a diverse workforce have been found to outperform their competitors in profitability by 25%. However, achieving a diverse workforce is easier said than done – unless you are using the power of data.
HR analytics can provide insights into issues such as gender balance and diversity in senior leadership roles. It can also be used to uncover potential issues, such as pay gaps or gender bias in hiring decisions, and provide the data needed to develop strategies to improve diversity and inclusion across the organisation.
Understanding your HR data starts with gathering internal data. But you also need to understand where you stand compared to your competitors and the industry at large. Are you lagging behind the industry standards or are you leading the way in recruitment, engagement, gender pay, etc? Having the answers to these questions is key in making sure your organisation stays ahead of the curve and is able to compete with other businesses.
The bottom line? Get on board the HR analytics train now, or else be left behind. At the end of the day, the possibilities are endless when it comes to HR analytics, and the best part is that you don’t have to do it alone. HR software such as elementsuite can help with this data-driven HR approach by providing interactive dashboards and reports, giving you access to real-time insights into key performance indicators such as employee satisfaction, retention rates and workforce planning.
The key is to have one source of truth, one centralised system for all HR data and analytics, so you can get the insights you need to make informed decisions that will drive the success of your organisation.
Now that you know the basics of HR analytics, it’s time to start exploring what it can do for your organisation. You might be surprised at the insights and improvements you can uncover from your data – so get to it!
And if you need a little extra help along the way, elementsuite is here to take your HR analytics to the next level. With our intuitive software and interactive dashboards, you can get insights into key performance indicators in seconds and use those insights to make informed decisions about your organisation’s future.
Ready to get started? Book a demo with us today and see how the power of data can transform your organisation.