Cost of incorrect data and decisions in workforce analytics
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In today’s data-driven business environment, accurate data is important. Getting the data you need to manage your resources efficiently and pave the path to success is critical.
Today, organizations rely on various tools to get the information they need to manage their workforce.
Workforce analytics is one of the essential tools for companies to make informed decisions about their workforce, such as hiring, training, and retaining employees.
However, the cost of incorrect data and decisions in workforce analytics can have significant consequences for organizations. In this blog, we will explore the cost of incorrect data and decisions in workforce analytics.
Inaccurate hiring decisions
One of the most significant costs of incorrect data and decisions in workforce analytics is inaccurate hiring decisions. If the data used to inform hiring decisions is inaccurate or incomplete, it may lead to the recruitment of unsuitable candidates, the rejection of qualified candidates, over-hiring, or under-hiring. This can result in lower productivity, lower engagement, and increased turnover, all of which can cost the organization.
Reduced employee engagement
Incorrect data and decisions can also reduce employee engagement. If the data used to inform decisions about training, career development, and performance management is inaccurate or incomplete, employees may become demotivated or disengaged. This can lead to reduced productivity, higher absenteeism, and increased turnover, all of which can cost the organization.
Lost productivity
Another cost of inaccurate data and decisions in workforce analytics is lost productivity. If the data used to inform decisions about workforce planning, resource allocation, and scheduling is inaccurate or incomplete, it may result in the inefficient use of resources and lost productivity. This can lead to higher labor costs, lower profitability, and reduced competitiveness, all of which can cost an organization.
Missed opportunities
If the data used to inform decisions about workforce planning, talent management, and succession planning is inaccurate or incomplete, the organization may miss out on opportunities to improve performance, productivity, and profitability. This can lead to lost opportunities, reduced market share, and lower profitability, all of which can cost the organization.
Legal risks
Finally, incorrect data and decisions in workforce analytics can also cause legal risks. If the data used to make decisions about hiring, promotions, and performance management is inaccurate or biased, it may result in discrimination or other legal issues. This can lead to lawsuits, fines, and reputational damage, all of which can be costly for the organization.
In conclusion, incorrect data and decisions in workforce analytics can cost an organization. Companies must prioritize data quality and invest in the necessary tools and processes to ensure that the data used to inform decisions is accurate, complete, and unbiased. By doing so, organizations can avoid the costs of incorrect data and decisions in workforce analytics and make informed decisions that drive success and growth.
Many companies still rely on manually reported data when managing their workforce. Manually entered data comes from tools like timesheets, project management tools, etc., and can be inaccurate.
How confident are you about the quality and accuracy of data you have that you use to make decisions about managing the most critical resources of your company- your people?
