Looking for a better way to interpret your workforce data? Understanding hidden patterns in your HR data via HR analytics can help you make smart business decisions. A small business can use analytical tools to optimize its management, operations, workforce planning, employee satisfaction and more. Even a manager with extensive experience and the best instincts can benefit from workforce analytics to enhance overall business performance. After all, why shouldn't a business use all the data at its disposal in the sharpest way possible?
Human resources analytics is a way of managing your business data to maximize success. By using HR analytics, you can uncover in-depth insights into your business and identify trends and patterns that matter to you and your workforce. Understanding your business’ people analytics can help you make better talent decisions, cultivate better work experiences and improve employee behavior.
HR analytics provide a powerful way to add value to your business by using data that’s unique to your organization. It helps align HR initiatives with workforce management techniques to create more efficient internal processes and optimize planning and performance.
The three most common types of business analytics are:
Because HR reporting uses data to provide insight on employer operations, it’s an essential component to ongoing success. It also allows HR leaders and business teams to gain a better understanding of employee data. They can use the data and those insights to create metrics to optimize HR practices and performance management, which may help support improved business performance.
HR analytics can also help identify problem areas so they can be addressed promptly. While tracking performance through HR reporting is an indispensable part of any business, HR analytics takes it a little further.
The potential benefits of using HR data analytics include:
To get the most out of your efforts, pair HR analytics with industry-specific expertise and reliable support.
Your employee data can be used to provide insight on internal trends, employee performance and ongoing internal development. A small business can use several analysis techniques to develop strategies, depending on the specific area it wants to improve. Let’s look at some of the ways to use HR analytics metrics in your business:
By analyzing talent management and recruitment efforts, you can stay aligned with market trends to prepare for future hiring needs. Talent analytics allows you to track ability and efficacy in regard to sourcing and recruiting new talent while properly managing new hires.
A 2019 study by the Harvard Business Review found that employee satisfaction is directly related to employee productivity and engagement. Additionally, having access to benefits is often considered part of a positive employee experience. By tracking interactions using performance management reviews and satisfaction surveys, you can gain a better understanding of what employees think about their roles and how they feel about their employer. HR analytics can often track benefits-related data, providing you with the feedback you need to enact positive changes.
It’s normal, and even beneficial, for employees to use time off throughout the year, but absenteeism is a problem that should be addressed. When employees don’t feel engaged and aligned with their organization, they’re more likely to display habitual absenteeism, which can hurt productivity and overall office morale. HR analytics can identify employee engagement trends in your small business to help reduce absenteeism, improve productivity and decrease turnover.
With critical compensation insights and a detailed view into wages and bonus breakdowns, you can make more informed decisions and stay competitive in your industry. This can help boost employee satisfaction and retention rates.
Before you can use HR analytics to benefit your business, you must first create a supporting framework. This includes understanding what areas you wish to focus on and developing a methodology for the project. The important steps for creating a targeted HR analytics effort include:
As technology continues to evolve, so do analytics and machine learning capabilities. Thus, it helps to take a dynamic approach to HR analytics. Automation has improved tremendously over the years, allowing for ongoing data analysis, calculations and optimization regarding workplace data. While there are challenges in using HR analytics, the benefits can be tremendous. This is especially true when you pair the expertise and support of HR professionals—or an HR department—with analytics.
The success of your business depends on the strength of your workforce and procedures that are implemented daily. TriNet’s Workforce Analytics can help you gain meaningful insight and identify the trends that matter to you and your business. You can make smarter business decisions based on real data when you:
TriNet understands that success doesn’t stop with technology. This is why we offer Workforce Analytics as a technology solution that, combined with access to HR experts and tools, can help your business stay ahead of the game. Learn how TriNet’s comprehensive HR solutions can help your business today.