What is HR Analytics?
HR analytics is defined as workforce analytics, people analytics, or talent analytics. HR analytics enables businesses to analyze the problem of employees using data. It enables you to answer critical questions about your organization. For example:
- What is your annual employee turnover?
- How much of your employee turnover comprises regretted loss?
- Do you know which of your employees will be the most likely to leave your company within a year?
At Quantzig, we believe that businesses that have implemented analytics in their HR processes are more efficient than their competitors. The following are the ways in which HR analytics can help businesses boost their efficiency by at least 30%.
With the help of Quantzig’s HR analytics solutions, a lot of businesses are able to reap significant commercial gains. Are you interested in our data analytics solutions? Request a free proposal now.
Benefits of HR Analytics
Benefit 1: Talent Acquisition
With the increasing competition in today’s market space, companies are struggling to attract the appropriate talent and devise ways to retain young talent. This is a critical issue as recent studies suggest that bad hiring decisions cost companies around 30% of employees’ first-year earnings. By utilizing HR analytics or any other contemporary software solution related to talent acquisition, companies can sift through thousands of resumes and create a database of the most promising prospects.
Benefit 2: Improving Employee Experience
HR experts are finding that increasing employees’ feelings of belonging to the company can increase morale and productivity. Analyzing how strong that sense of belonging is and what contributes to it with the help of tools like HR analytics can help improve company culture and create a better work environment.
Benefit 3: Streamlining Corporate Training and Evaluations
It is not enough for HR professionals and recruiters to simply hire the best talent. Their real job is to make sure that they adapt to corporate procedures and the company culture, and guide them through effective professional training programs. It is hard to determine the exact benefits of online training programs that many employees participate in. By making use of HR analytics, trainers can understand the true valuation of these courses and devise new strategies to modify them and make employees more productive.
Benefit 4: Rethinking Financial Compensation
Among all the factors that play a critical role in influencing an employee’s satisfaction levels, financial compensation is perhaps the most important. After all, we all want to make a decent living and make the most of our opportunities. When it comes to pay, HR analytics can help you determine the financial model for each employee – this is critical for large Fortune 500 companies since they have many international branches with employees at various levels in the hierarchy.
Benefit 5: Taking Greater Advantage of Machine Learning
There are vast amounts of data available both within a company and outside it. Some companies are beginning to use machine learning and tools that leverage the insights gained from HR analytics to help interpret and act on them. Such programs can examine employee and applicant data and help create strong matches for roles and teams, resulting in the recruitment of people that work well together and create effective results. There are many areas in recruitment, where advanced analytics can also be used to a great effect.
Benefit 6: Unified Employee Support
Often, employees need to access different intranet locations and contact different people depending on the HR support they need or the information they are looking for. By making use of HR analytics tools, companies can identify a resource that accepts employee requests and returns the relevant information. This not only saves everyone time but also provides employees with a more pleasant experience.
Contact us now to learn how you can leverage HR analytics to strategically tap into human capital and turn it into a competitive advantage.
Benefit 7: Stabilize Retention
Today, HR analytics has become the primary tool to assess the retention rate of employees. It tells recruiters the exact reason for attrition and also sheds light on the reasons why employees decide to stick around in the organization. Such analytics tools can also help HR professionals to identify the skill gaps and areas where teams are struggling.
Benefit 8: Cloud Migration
With corporate systems become more consolidated and automated, analytics begin to play a greater role. Tools that can leverage analytics are an affordable option for organizations that cannot build their own systems in-house. HR analytics can help organizations move critical information to the cloud so that it can be accessed from anywhere, not just within the office.
Despite such benefits, many companies still assume that HR analytics, or talent analytics, only deals with gathering data pertaining to employee efficiency. The truth, however, is very different from such naïve assumptions. Such analytics tools aim to provide insights into each process by gathering data and then using it to make relevant decisions about how to improve the processes. A recent survey by MIT and IBM highlighted the fact that companies with a high level of HR analytics had: 8% higher sales growth, 24% higher net operating income, and 58% higher sales per employee.