Data analytics is a useful tool in just about any area of business. HR is no exception. Businesses are realizing the importance of being more proactive instead of reaction in all business processes and are beginning to understand that strategy is a part of HR just as much as any other area of business. The strategy isn’t limited to marketing and sales, but also to the workforce. HR analytics have made understanding things like the motivators for employee engagement and the barriers to hiring much easier and more manageable. Better data and understanding of that data means better actionable insights that the best decisions rely on. Here’s how that data can help your HR endeavors and change your business for the better.
The Evolution of HR Analytics
While there is still some debate about where the attention of HR professionals should be focused to drive the best results and ensure the hiring and managing of the best people, HR analytics have evolved over time to help give HR teams a better sense of many areas and helped guide them to new processes that help them support employees and the business as a whole.
One 2018 HR research study notes, “HR analytics… has passed through the phases of measuring the sub-functions of HR, staffing technique and criteria effectiveness, introducing comparative benchmarking on functional parameters of HR at the industry level, predictive and prescriptive analysis etc… [The] majority of the Fortune 500 companies are restricted to traditional analytics practice and have not shifted to the advanced HR analytics, though an MIT study has shown specific proof of better impact caused by HR analytics in progressive firms.”HR analytics has grown to benefit many businesses in many different ways, with the potential to create even further impact.
How HR analytics help your HR efforts.
So what HR analytics benefits can you expect to see in your business?
#1. Measure the success learning and development
No one wants to stay the same forever – not businesses and not individuals. It’s important to grow and embrace change to remain connected with the bigger picture. HR analytics allow employers to better see the connection between learning and training initiatives and tangible results 3, 6, or 12 months down the line. This measurement is helpful for businesses looking to do more than just offer the basic training needed to work for a company and elevate it to a meaningful education that can help employees curate a career.
#2. Elevate the employee experience
Better employee experience and employees who are engaged in their work are linked to better employee retention. Soliciting employee feedback is part of HR analytic, as even self-reported metrics are important parts of employee experience datasets. Retention is an important part of HR responsibilities. It’s a crucial way to save business money, both in saving recruitment and hiring costs and also by ensuring less downtime and lost work. Understanding the driving factors and motivations for employee engagement and experience should be a priority for employers.
#3. More competitive hiring
Hiring is an area that some businesses still struggle with. In some industries, there is an excess of open positions and a shortage of qualified talent, so it’s important to refine your hiring efforts to help connect your open jobs with the best possible candidate matches. HR analytics helps you find stronger talent sooner in the process, hopefully securing a hire before your competitor does.
HR analytics benefits can be seen in just about every area of HR, from hiring to training to employee retention to company culture and even in helping to develop perks programs and decide salary and wages. Any business that wants to understand how to bring in the best employees, encourage them to stay, and support employee development that feeds right back into employees supporting the business needs to invest in HR analytics.