HR ANALYTICS & IT'S IMPORTANCE

 

HR ANALYTICS & IT'S IMPORTANCE

“HR analytics is a methodology for creating insights on how investments in human capital assets contribute to the success of four principal outcomes: (a) generating revenue, (b) minimizing expenses, (c) mitigating risks, and (d) executing strategic plans. This is done by applying statistical methods to integrated HR, talent management, financial, and operational data,” says Collins in an exclusive discussion with HR Technologist.

TYPES OF HR ANALYTICS

HR analytics: HR analytics specifically deals with the metrics of the HR function, such as time to hire, training expense per employee, and time until promotion. All these metrics are managed exclusively by HR for HR.

People analytics: People analytics, though comfortably used as a synonym for HR analytics, is technically applicable to “people” in general. It can encompass any group of individuals even outside the organization. For instance, the term “people analytics” may be applied to analytics about the customers of an organization and not necessarily only employees.

Workforce analytics: Workforce analytics is an all-encompassing term referring specifically to employees of an organization. It includes on-site employees, remote employees, gig workers, freelancers, consultants, and any other individuals working in various capacities in an organization

Benefits of HR Analytics

Talent acquisition is a key element of your HR process, it is an all-year-round activity. Be it hiring for a new function, a larger team, or a new role altogether, your TA team is always busy. Finding the right candidate is always a task, and when they do, one can only hope everything goes well and they actually join the organization. How many candidates actually join, how many drop-off at what stage? What job boards work the best for you? How many candidates do you need to reach out to close a position? These are just some questions that you could look at resolving through analytics. This data will help you see the bigger picture and fill in whatever gaps that are causing delays.

Productivity levels will always go up and down and there are a host of factors affecting that. This ranges from office infrastructure, work environment, managers and team-mates, and job satisfaction among other things. Gathering data on what’s affecting productivity will certain arm you with data to take corrective actions. Employee engagement is a key factor affecting workforce productivity, look at improving engagement. You can start off by implementing a few employee engagement ideas and activities to boost the rate.

Conclusion

HR Analytics does not mean buying expensive software, setting up a huge team or long processes. You can start small – have conversations with employees, record their responses, add managers in the loop, involve various functions, make a plan, share it with everybody, and commit to it. Sharing the data is crucial to make sure everyone knows it, understands it, and suggest ideas to improve the employee experience. Use the data to drive initiatives, remedy any existing problems, and bring positive changes in the organization. HR Analytics will help you monitor and improve your employee engagement, employee retention, employee wellness, employee productivity, employee experience, and work culture.

References

Bowen, D. E. & Ostroff, C., 2004. Understanding HRM firm performance linkages: The role of the "strength" of the HRM system.. Academy of Management Review: s.n.