HR analytics is one of the tasks that the human resources department of the organization has to carry out. It implies the analysis of people or the employees and behavior of the workforce. It helps in formulating the analytical process that can be applied to the human capital to increase labor retention and better performance.
HR analytics is not a mere collection of data, but a thorough analysis of the same and use the same for the betterment of the organization and employees.
As an HR manager, you should be able to make optimum use of resources at your disposal. After all, it is the employees that act as front wheels to a vehicle called the organization.
Here are few HR analytics that every HR manager must be aware of
1. Employee Turnover Analytics: This implies the analytical process that assesses the workforce turnover. It is usually derived by analyzing the historical data with current data. Both past and predictive data are essential to reduce employee turnover.
2. Expertise Analytics: Human resources simply mean human intelligence. A person is hired for his or her talent. The success and growth of the organization should also be credited to the talent and skills of the workforce. Expertise analytics refers to the talent analytical and management process that facilitates the identification of the core capabilities of the workforce.
Identifying the core capabilities helps, in turn, allows identifying the gaps in the current workforce and taking corrective measures.
3. Work Culture Analytics: In an organization, the work culture refers to human behavior and their patterns towards work and people. Work culture analytics is all about assessing the unwritten rules of the organization. It can help in taking corrective steps if the culture is turning to be toxic. In the case of healthy work culture, it helps in keeping up the same or makes it even better.
4. Efficiency Analytics: This analytics helps in knowing the productive time of the staff in the organization and their outlook towards their jobs. Also, it helps in formulating measures to improve efficiency, if their behavior towards their work is way too casual.
5. Management Analytics: People do not leave an organization; they leave bad managers. Leadership roles are meant to inspire and bind people, but sadly, some managers are so incompetent that they become the reason for the higher attrition rate. However, the management or leadership analytics can play a savior here. The analytical process helps determine the inadequate and incompetent leaders in the organization.
Several methods such as polls, one on one interviews, surveys, etc. can be adopted for the analytics.
Merits of Using HR Analytics
HR analytics serves as an organization in many ways. It simplifies the process of tackling many issues that the organizations go through. Some of the benefits you must know are –
1. Enhances Hiring: HR is always busy with filling in the vacant positions of the company. Hiring the right talent is an arduous task. If at all, they find the right candidate, they aren’t sure until the chosen candidate joins the organization. HR analytics helps in dealing with some of the pressing issues, such as the number of candidates they must interview to close a position. Such analytics allows them to view a bigger picture.
2. Minimizing Attrition Rate: Attrition is one of the significant causes of concern in many organizations. The data collected through Exit Interviews can help in determining the reason for people leaving the organization and taking preventive measures to reduce the attrition.
3. Employee Satisfaction: The managers and HR need to keep up the rapport with employees. Timely meetings with them will help them know the employee satisfaction and what are the factors that are not giving the employees a pleasant experience. HR analytics help in improving the employee’s experience during their journey in the organization. Employees are the front wheels of a successful organization.
4. Improve Productivity: The employee productivity is directly proportional to employee’s satisfaction. Several factors can hamper the richness of the employees. Some of these are work culture, the behavior of immediate managers, teammates, etc. HR analytics helps in determining the gaps and take preventive measures. Preventive measures enhance employee engagement and boost productivity.
5. Employer and Employee Trust: Last, but not least. Gathered data and analytical processes deal with many untouched areas of the organizations. The corrective measures help in dealing with these issues and provide a sense of belongingness among the employees. Thus, this, in turn, enhances employer and employee trust.
HR analytics can go a long way in improving the overall functioning of the organization. With the advent of technology, this is made simple. The organization can invest in software such as HRIS, which takes care of all the above factors in a timely and organized way.