HR leaders are increasingly dependent on employee data to shape their people and business decisions. Gone are the days of using gut feelings to develop business decisions—successful leaders leverage reliable, evidence-based data to define their business strategy. In fact, almost 70% of HR leaders use HR analytics in some way.
But still, some leaders don’t have the background they need about HR and people analytics to apply it at their organization. This guide will help you understand:
HR analytics is the data you collect about your people. This process involves gathering, analyzing, and connecting talent data to business outcomes. The insight leaders uncover with HR analytics provides the evidence needed to take strategic action. With a robust HR analytics strategy, leaders can make data-driven decisions and move forward with confidence.
HR analytics and people analytics are often used interchangeably but there are slight differences between these terms based on the data they measure. HR analytics deals primarily with the function of HR. It measures metrics such as time and cost to hire, train, and promote employees. People analytics, however, is a broader term that can also involve data about people outside your organization too, like customers.
HR analytics can measure many things that are key to business success. With a robust strategy and the right tools, leaders can keep a pulse on:
The deep insights leaders uncover with HR analytics helps shape meaningful action. Here are the top benefits of using HR analytics to make strategic decisions:
Getting started with an HR or people analytics strategy can seem difficult, especially when leaders have little experience with the process. To ensure your program is successful, keep these tips in mind when getting started:
1. Clearly define the business problem you are trying to solve or the opportunity you want to uncover.
2. Identify your data sources and gaps, like employee surveys and industry benchmark data.
3. Use robust technology to empower your strategy.
4. Get senior leadership buy-in.
5. Leverage data engineers to track and collect quality data.
6. Slice and dice data between different demographic groups.
7. Use data experts to interpret your data and understand its full scope.
8. Use your data to implement changes across the organization.
HR analytics tools empower leaders to make better people and business decisions. When searching for software to maximize your success, look for these features:
Dynamic analytics dashboards help leaders visualize their trends—all in one place—to tell meaningful stories about their people. With a robust intelligence dashboard, leaders can assess the relationship between engagement, performance, turnover, alignment, and varying work environments with an integrated user experience.
Plus, automated best practice configurations and visualizations provide deep insights that are tailored to your business. Custom reporting answers your unique questions and generates automated reports about your people. Your data is at your fingertips at all times in an easy to interpret manner with a robust intelligence dashboard.
A seamless data feed helps leaders uncover deeper insights about their people by combining HR analytics with other key business analytics. It equips leaders with the context they need to make strong decisions and take needed action.
You can extract, transform, and load data in one take, and store it for future reporting needs. Plus, a strong data feed feature will update data on a frequency that best fits your organization’s needs, so that your data is always up-to-date and accurate.
Employee flight risk tools identify employees at risk of leaving your organization before they leave. This preventative tool helps leaders shape better retention strategies and prevent top talent loss. Leaders can reduce turnover costs and make impactful investments on retention to shape a workforce of highly-skilled talent.
It’s important to understand which employee perceptions and experiences often lead to turnover. A robust HR analytics platform will tie employee survey results to turnover data, giving insight into the drivers of employee turnover. This gives leaders the data they need to shape an engaging employee experience and retain their top performers.
Survey text analytics helps surface key themes in your employee surveys. Qualitative employee perceptions are important to measure, but often take a lot of time to sift through. With a streamlined text analytics tool, you can take the weight off of your shoulders and quickly analyze survey comments for critical insights.
Leaders need to be able to slice, dice, and filter data for better clarity and understanding. This helps leaders understand viewpoints based on things like tenure length, department, and role. Segmenting data helps to paint a more comprehensive, accurate picture of your workforce to shape successful business action.
To stay buoyant in an ever-changing workplace, leaders can’t shape their people and business decisions without data-based evidence. Luckily, the right tools will streamline and expedite your HR analytics strategy to uncover meaningful insights, make confident decisions, and propel long-term business success. Leverage a robust HR analytics platform to put your best foot forward and thrive in the modern workplace.
To get more background about the importance of people data—and the process to collect it—download our ebook, The Beginner's Guide to HR analytics: The What, Why, and How of HR analytics.