Employees are the foundation of any business. Although a company may have a perfect concept, with a wide market which is just waiting to be taken advantage of, without productive, engaged employees, the business is doomed to fail.

This is why HR is so integral. With effective human resources, employees can feel supported, valued and safe to do their work in an environment which accommodates and protects them. As well as this, HR analytics can be an important tool to improve the overall performance of your business. With the use of talent and workforce analytics, you can attain data which will help you gain a wider understanding of where your company is either flourishing or failing; which can similarly aid you in your sales and development.

Business High Five

So How Does HR Analytics Work?

Nearly every company will have data that is constantly collected, but this does not always give an accurate or coherent insight into the operations of the company as a whole. With HR analytics, the raw data can be organised, analysed and transformed into a coherent chain which can answer a variety of questions. The answers to these questions include:

  • Patterns found in employee turnover.
  • Productive speeds of employees and how much more investment into engagement programs is needed.
  • Which employees are more likely to stay loyal and which are more likely to leave.
  • The impact of development initiatives on productivity and performance.

As a business, getting a full picture of these areas of the company is important in the pursuit of success. Specifically, employee turnover and productivity should not only be analysed but also reacted to swiftly and purposefully. If, for instance, the productive speeds of employees are low, then this will mean that sales are being missed and profits are lower than their full potential.

The ability to pinpoint this through HR analytics can allow you, as a business, to take the measured steps to neutralise the problem and subsequently boost the sales which you are missing out on. For employee operation speed and engagement, Incentivesmart offers a full employee engagement program which can help you negate poor engagement and make the most out of the whole team.

How Will My Work Culture Be Affected By Analytics?

One of the key areas where HR analytics will affect your work culture is recruitment and staff retention. Often, when employees quit, there is not an entirely clear reason as to why. It can also negatively affect both your profit and time, as your attention is turned to replacing and training new staff.

With HR analytics, data can be collected and analysed to identify the trend of the turnover, allowing you to develop strategies which will improve the work environment and prevent the trend from repeating itself. Most of the time, this data will be focused on staff behaviour in the lead-up to their exit, which similarly helps you build a predictive model to flag that behaviour and track employees who are exercising the same pattern.

Vice versa, recruitment can also be managed with analytic data which has pinpointed your current employees and their performance. If you know the attributes which have led to outstanding productivity, then you can use this data to identify candidates with the same attributes and build a work culture which is effective and high-performing.

What Is The Most Important Factor Of HR Analytics

Looking at recruitment once more, using HR analytics to aid recruitment can be far more conducive to finding the best applicants. This is because you are doing far more than simply reading through a number of CVs, especially when you do not have a clear idea of what you are looking for. Similarly, HR data can provide your company metrics that tell you how long it is taking to hire new candidates, which will allow the department to be more prepared when you need to recruit in the future.

This time to prepare, specifically, is one of the most important factors of HR analytics. In business, time management is key when it comes to increasing your own focus and improving productivity across the board. With a more intense focus, your company will be able to capture opportunities and spend more of its time on the goals, projects and sales which will ultimately decide the success of your company’s future.