Benefits of Workplace Analytics
A sophisticated set of metrics and data analysis tools called workforce analytics is used to measure and enhance the performance of the entire workforce. In addition to conventional ratios such as time to fill, cost per hire, time to start, offer acceptance rate, accession rate, retention rate, add rate, and replacement rate, it evaluates hiring, staffing, training and development, personnel, compensation, and benefits.
The importance of workforce analytics is multi-fold. Software for workforce analytics is included in the broad category of people analytics, commonly referred to as HR analytics. People analytics is a wide word that covers all aspects of hiring and managing personnel, whereas workforce analytics is frequently more specifically focused on workforce-planning difficulties, even though the names are occasionally used interchangeably.
As with many other facets of HR, technology advancement that provides far more insight into employee data has caused a significant shift in the concepts behind workforce analytics. In that regard, modern workforce analytics goes further, has more clout, and displays itself in a more aesthetically pleasing manner than earlier iterations.
Below are some typical inquiries that HR professionals use workforce analytics data to address:
Are we retaining our best employees?
What traits do our best performers share?
Who runs the danger of quitting?
Which training has been the most successful?
Where are the opportunities to reduce labor expenses?
What Are the Uses of Workforce Analytics?
Hiring and talent management
The crucial indicators that HR teams use to monitor their aptitude and effectiveness in locating, attracting, and managing personnel are recruitment and talent management. To satisfy present and future hiring demands for in-demand skills, talent management metrics assist track supply and demand trends.
Sales per employee, revenue per employee, and other qualitative data are examples of common metrics that may be used to monitor the efficiency of your employees based on productivity measurements and output.
This includes communications between applicants and a corporation from the outset of their interactions till they part ways. More productive and engaged employees are more likely to stay with the company for a longer amount of time when the working environment is favorable. You can find out how your employees feel about their employer through a variety of approaches, including employee surveys or performance evaluations.
This extends past regularly scheduled and occasionally missed days and is also referred to as persistent absenteeism. Do any individuals or departments have a problem with absenteeism that is harming business results? This should be monitored and addressed as needed because it may have an impact on output and morale.
The length of an employee’s tenure at your organization can be affected by hiring, training, and HR management tactics, which are all better understood through measuring employee retention. With high recruitment costs, decreased production from unfilled positions, and training costs, low retention can have a negative financial impact.
These metrics are crucial workforce planning indicators that show how well onboarding, training, and upskilling work. The annual training hours, training spent per employee, and skill acquisition are all useful KPIs to track.
Develop and deploy a project framework for workforce analytics by understanding the need
Ask questions about the expected business results and list the workforce issues the project will try to solve before putting a strong workforce analytics project into action. Doing this may win the backing of project stakeholders and executive sponsors.
Develop a project statement
Before obtaining and analyzing workforce data, use internal research, industry data, studies, and information from subject matter experts to develop a testable project statement.
This stage entails selecting high-quality workforce data, establishing its applicability, and selecting the kind of data to gather. Do you use new data, for instance, or old data? Address any legal issues and match the project’s objectives with ethical standards for data privacy and security compliance. To acquire a holistic picture of workforce behavior, data sources should include accounting, customer relationship management, projects, and other areas in addition to HR sources.
Establish the aim as well as the workforce KPIs to monitor and assess.
Create dashboards for workforce analytics
Create useful and interesting KPI groups and other visualizations for your decision-makers. With HR dashboards that show pertinent observations through real-time, interactive user-friendly visuals and quality workforce data, you may gain insightful knowledge about workforce planning and management.
Enhance workforce reporting
Utilizing workforce analytics reports that make sense to project sponsors and implementation managers, interpret data, and make clear project recommendations. Make sure everyone is aware of who is in charge of the project’s conclusions and actionable results.