Wining for the Future Workforce: Why HR Leaders Need People Analytics

Every human resource (HR) leader comes across multiple challenges they want to solve. It could either be a small issue or perhaps a large one.

  • Lack of productivity
  • Cost overrun
  • Bad hire
  • Bad attrition, etc.

Despite major progress in the human resource industry, HR leaders still face a challenge in tackling these problems.

Ever since the seismic shift in the HR industry, smart organizations now realize why they need to embrace data-driven culture more than ever.

Forward-thinking organizations have already undergone digital transformation taking advantage of new technology. One of the major reasons why for many organizations implementing technology solutions has become the next crucial step.

People analytics, as elaborated by Jonathan Ferrar, an author and business advisor in HR strategy says,

it is the discovery, interpretation, and communication of meaningful patterns in workforce-related data to inform decision making and improve performance.”

Therefore, its role is to offer organizations the right kind of insights that could help the firm make better and insightful business decisions while keeping the well-being and employee experience intact.

Since we’re now living in a data-driven economy, implementing analytics in the HR processes will only drive businesses to perform better and more efficiently.

Earlier analytics in HR used to be more about providing reports to the managers about attrition. But in the present-day it has driven beyond the HR metrics, the focus has shifted toward how data can be used to understand how people are using it to drive business value along with the operations.

The disruptive potential of people analytics for strategic decisions

Most often people analytics is also called HR analytics and is referred to when data patterns are used to boost performance or drive decision making. This helps measure the impact of HR metrics such as retention rate or the time taken to hire during a business performance.

Based on a survey by Forbes in terms of the requirement of skills, more than 68 percent of organizations worldwide prefer data analytics and predictive analytics.

Organizations that are undergoing high turnover can use HR analytics to analyze the cause for the downfall in their performance and the factors that cause a significant impact on productivity.

A DDI report says that organizations that use people analytics or HR analytics tend to outperform their peers by 3.1X times.

Most of the HR metrics are unable to provide accurate information about what factors are needed to meet business demands or how shortfall of staff may impact net promoter scores and revenue goals, etc. By swaying away from traditional headcount metrics toward dynamic trends, HR leaders have gained the C-suite trust.

With the help of HR analytics, you can now easily dig deeper into strategic metrics such as:

  • Quality of employees that are hired
  • Revenue per employee
  • The HR effectiveness
  • The failure rate of the new hires

Let us further discuss the potential of people analytics or HR analytics and why we need them.

Quality of hiring: Talent acquisition analytics provide organizations the attributes to hire high performing employees with a high retention rate. It also helps them understand whether they are losing people in the acquisition funnel.

This helps in optimizingthe amount spent on recruiting candidates and find the right attribute to help future candidates.

Employee retention: The targeted retention that is reported by HR analytics gives the organization some heads up about how employee turnover can be reduced.

Accelerate diversity: Diversity is crucial for businesses and analytics plays a major role. From identifying the areas where bias is taking place to give answers about the state of diversity in an organization, analytics is needed.

The Merck KGaA with the help of people analytics or HR analytics can aid in tracking diversity and inclusion. The end of 2018 demonstrated 32 percent of women in leadership roles such as managers or even above the managerial role. As a result, it is said that by 2021 it would exceed the target of maintaining 30 percent representation of women in managerial roles.

Facilitate learning: Companies with the help of analytics can now improve learning sources and training modes. Analytics plays an important role in the training and development of business purposes. Thus, helping the organization ask the right type of questions and get the right answers. Pitney Bowes helps in demonstrating the products employees have learned to use with the help of people analytics. This gives managers the ability to understand whether the employee has received the right training before sending the candidate on service calls.

Boost productivity: Productivity has drastically improved in organizations. For instance, companies can now link the actual hour spent on a particular activity to an optimal target and this is monitored against an index – therefore, boost productivity and save costs.

In conclusion

With people or HR analytics, talent can directly remain linked to driving business value. This helps leaders facilitate the right talent into the right job role to further solve businesses’ worst challenges. Doing so will improve the way company hires, attract, and train talents. ver más Actividades en Punta Cana.


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