How HR Analytics And HR Data Benefit A Business

Let’s start off with understanding what HR is!

Human Resources or (HR) is a department of the company which handles screening and interviewing of the candidates, training applicants for the job and are responsible for employee satisfaction.

HR helps the company and the workforce adapt to the ever-changing world of business.

For an organization regardless of its size, it is essential to have an HR Department as the HRs focus on maximizing the productivity of the workforce and protecting the company from any problems that may arise from the side of the employees.

HR of a company has many responsibilities to shoulder and some of these are compensation and benefits, recruitment and laying off of employees, and it is their duty to be updated on laws regarding the same.

A few people-related activities an HR is supposed to do in order to add value to the company are:

  • Managing and making the maximum use of the workforce
  • They are responsible for increasing the creativity, innovation, and flexibility which is necessary to enhance competitiveness
  • They are responsible for coming up and executing new workforce strategies. They are responsible for succession planning, which refers to identifying the potential new leaders, career development for the employees and also to improve the inter-organizational mobility.
  • Enhancing individual and organizational performance by developing competencies.
  • They are responsible for tying competencies to compensation and performance appraisal
  • They are responsible for the management of the implementation and integration of technology with the help of better staffing and training.

What is HR Analytics?

Human Resources Analytics is the field of analytics that deals with people analysis and also deals with the application of the analytical process to the human capital/workforce in order to improve employee performance.

In other words, Human Resource Analytics is a methodology to help HRs gain insight on how the human capital assets contribute to the 4 main successful outcomes of a company

  • Generating Revenue
  • Minimizing Experiences
  • Mitigation risks
  • Executing strategic plans

Here are a few HR Analytics that HR Managers should be aware of:

  • Employee Churn Rate:

When it comes to human capital/human resource the investments involved in it are huge and this applies to every organization. The process of assessing your workforce turnover rate is called employee churn rate. The churn rate helps the HR managers predict the future and they can use that information to implement changes and reduce employee churn.

  • Absence Rates:

HR Departments can use employee analytics to determine the health of employees by absenteeism reporting. This kind of analysis can help you breakdown the total number of leaves taken by who and when, and that in turn will help you determine who took sick leaves genuinely and who didn’t. That helps you in making changes in the company’s workforce and maximize productivity.

  • Capability Analytics:

The management process that helps you identify the core competencies of the workforce is called capability analytics. As it goes without saying the success and failure of an organization also depends upon the skill and expertise of the employees. This helps the HR manager create benchmarks based on the current performances by the employees, helps the HR manager identify gaps in performances and make strategic changes accordingly.

  • Revenue

Revenue per employee speaks a lot about the employee and helps you understand where your business is progressing. It also helps them get an idea about their staffing ratio which can indicate if the company is in a position to meet their goals. Though not every job in a company will have a direct impact on the revenue, this is just a metric for companies to understand their efficiency.

How Can HR Data be Helpful?

HR data is one of the most vital assets, it allows you to predict patterns in data, allows you to understand those changes, and makes strategic changes accordingly, with all this at play the HR manager can make an informed decision.

It can be leveraged to impact the company’s culture and optimize the process. But more than anything, HR Data allows you to understand the employees.

How to Gather the right data?

In today’s fast-paced world there are numerous applications and technological solutions that an organization can invest in. This would help in gaining a unified view of critical HR Data.

An HR technological solution is necessary as it helps share updates in real-time, it makes it easy to follow up on teams to make sure that work is being completed on time.

Benefits of HR Data Analytics

HR Data and Analytics helps an organization in becoming more strategic by helping them tackle current issues.

  • Improve the hiring process:

Hiring people to work for an organization is a key element of the HR process regardless of whether they are hiring for a new role, a larger team or a new position in the company. It is a task that requires a lot of work and patience. As it takes time to find the right candidate but with the help of HR analytics, it makes the task of finding and retaining a candidate easier.

  • Making your workforce productive:

Due to various factors, workforce productivity is always changing and never constant. Gathering information as to what is affecting productivity and then make changes by implementing employee engagement strategies

  • Gaining the trust of Employees

Because of HR data and analytics, HR managers have access to all data that allows one to see what exactly is happening at the organization and how you’re employees perceive it.

How Does HR Analytics Help With The HR Onboarding Checklist

Firstly, an HR onboarding checklist helps the HR and managers ensure that all the necessary steps are being followed to prepare the new candidates for their onboarding and guide them through the process of becoming a part of a successful organization.

HR analytics as we know deals with people analysis and also are responsible for applying the analytical process to the working capital in order to improve the performance of the employees in the organization and improving employee retention.

HR analytics data helps the HR in assessing a candidate’s performance and decisions while hiring new employees, it also helps the HR to guide the new candidates through the onboarding process without any hassles.

Here are a few Steps in the Onboarding Checklist:

  • Submitting a job requisition form with the HR department
  • Doing a thorough background check of the candidate
  • Review of schedules and job basics
  • Filling out all the required new hire forms
  • Introduction of the new candidates to the team
  • Preparing candidates for the work environment
  • Being prepared with new hire training equipment.

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