HR analytics are improving business processes for every sector but there are still many organizations that are cautious about the true effectiveness of this data. If you’re looking to use HR analytics to improve your bottom line, retention and turnover rates, employee engagement efforts or just to ensure the long-term success of your business, use these HR analytics case studies to gain a better understanding of just how HR analytics can ensure the success of your organization.
What HR analytics case studies can provide you with tangible organizational benefits?
Use these case studies on HR to gain a better understanding of why HR analytics are essential to the success of your company.
HR Analytics Case Studies
1. Employee Leave Predictions at Credit Suisse
In March of 2015, The Wall Street Journal published one of the first articles detailing how employers can effectively predict which potential hires might stay with their company longer, thus, saving the company a lot of money. This now extremely popular HR metric, known as employee churn analytics, not only helps employers determine who might quit the business but also explains why these employees may quit. Since the introduction of employee churn analytics at Credit Suisse, managers at organizations today are better trained to retain high performing employees and reduce turnover risk factors.
2. Employee Turnover at Experian
While there are many case studies on HR, this case study not only improved turnover rates but saved Experian millions of dollars. The credit reporting site, Experian, was having major issues with employee turnover with levels being 4% higher than what they aspired them to be. Experian sought out to build a predictive model that included 200 attributes to predict the flight risk of employees, including team size and structure, supervisor performance, and length of business commute. By discovering what attributes they could change to reduce employee turnover, Experian was able to save an estimated $8,000,000 – $10,000,000.
3. Talent Retention at Nielsen
Back in 2015, Nielsen, a leading global information & measurement company, created a predictive model that was designed to help them retain key talent at the company. This predictive model informed Nielsen that the first year employees work for their company is the most important. Nielsen discovered that when they approached employees at risk of leaving the company with a job change, they were able to keep 40% of flight risk employees.
4. Employee Absence at E.ON
E.ON, a European holding company, was noticing a large number of employee absences and decided to tackle the issue using people analytics. To tackle their employee absenteeism, E.ON had their analytics team formulate 55 hypotheses to solve the issue, tested 21 of them and ended up validating 11 of them. E.ON found that employees who didn’t take a long holiday once a year or take a personal day or two every now and then increased absenteeism and the best way to solve this issue was for managers to improve holiday approval policies.
5. Employee Engagement at Clarks
Clarks, the large shoe retailer, decided to look into the relationship between employee engagement and the financial success of the company and discovered some rather interesting information. First, they discovered that engaged employees leads to higher business performance. They also discovered that there was an optimum team size that should be met in their stores and that the length of tenure of a store manager was a major indicator of employee performance. Thanks to the insights Clarks gained from their investigation, they were able to create a blueprint for high-performing stores and create an engagement toolkit that managers can use to improve employee performance.
While there are many HR analytics case studies available to gain a better understanding of just why HR analytics are essential to the long-term success of your business, it’s important to learn from different case studies on HR to have the best understanding of how to properly run your business. As long as you link employee attitudes directly to business outcomes, prioritize business interventions that offer the greatest impact, ensure that managers are focusing on areas that will improve business outcomes the most, and improve key business drivers, you can ensure that your organization will be successful for years to come.