We’ve long since acknowledged the importance of data and analytics in our organizations. Helping us to better understand our customers, develop products and personalize content, it’s existence is evident across industries and organizations. Obviously, our strategic approach has been driven by our data for some time but this doesn’t mean we can’t reassess . Particularly in 2022, there’s no better time to look at how analytics assist HR and push the workforce forwards.
Defining HR Analytics
HR analytics refers to the collation and use of human resources data to improve the performance of staff. Also referred to as talent, workforce or people analytics; it is one of the best means of instituting lasting, data-driven change in our organizations. Payroll, performance and demographic data would all be considered pertinent examples of HR analytics. Through the successful analysis and activation of this information, HR can effectively predict future workforce trends.
How can HR Analytics be used?
Once we’ve gathered the information we need from our chosen channels, how can we use it drive the workforce forwards?
Turnover: The Great Resignation and Hybrid work have changed the way we look at work. According to SHRM, 47% of HR teams say employee retention and turnover as their biggest challenge. How then, can we use HR analytics to alter the conditions that lead to its likelihood?
- We can look at past data to identify trends and patterns which indicate reasons for employees resigning, or if it’s around a particular time or company announcement.
- We can collect data on employee behavior, such as productivity and engagement, to better understand the status of current employees.
- We can then correlate both datasets to reveal our reasons for turnover.
Diversity: In 2022, it’s vital that we realize greater diversity in our organizations. According to Forbes, more diverse workplaces are more profitable, whilst diverse teams report a 35% growth in performance against competitors. How then can analytics encourage greater diversity?
- By looking at the demographic information of your employees you can quickly get a sense of what diversity looks like in your organization, whether that’s based on gender, ethnicity, education, or belief.
- With heightened understanding of current diversity levels, we can better design metrics for what good likes like for our organizations and team. After all, the greater the diversity of thought and experience present in your organization, the better.
Recruitment: Naturally, one of the best solutions a lack of diversity and high turnover is to invest in recruitment. However, 45% of employers said that they couldn’t find the workers they needed in 2021, this is where analytics become useful. In recruitment, HR analytics can:
- Help us to identify candidates with attributes that either align with our company values or top-performers in the organization already.
- Provide deeper insights into applicants. This could be anything from analyzing cultural fit to any potential developmental opportunities we could provide.
Through the collation and ultimate use of HR analytics in our organizations, we can look to drive our workforces forward more effectively. To this end, its critical that we bring the CDO and CHRO together in regular conversation to check whether we’re pulling the data that’ll help us to make a difference and also that we’re using it to effectively drive real change.
Asking your Employees
Speaking at GDS’ Data & Analytics Summit in November, Lydia Wu – Head of Talent Analytics & Transformation for Panasonic USA – spoke on the importance of HR analytics in creating a better workplace. Above all else, she identified the importance of involving the workforce in the process.
1. The easiest way to figure out if what you’re doing makes sense or not is to share your data with your people.
2. Ask your people what they think doesn’t work because that will tell you more than anything what else you need to look at from an analytics perspective.
3. You can’t boil the ocean so how you prioritize work is really based on the amount of impact.
How Can we Use HR Analytics to Drive our Workforce Forwards?
It’s vital that we continue to collect the information pertinent to our employees. Equally though, if we want to quickly gauge sentiment and see if we’re on track to deliver workforce transformation, we shouldn’t be afraid to ask employees. By using both in tandem we can not only drive our workforce forward but also future-proof in the process.
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