Reinventing Strategic Workforce Analytics
Are your HR and executive teams finding it difficult to plan and achieve your organization’s human capital needs? No worries! You are not alone. In fact, this is one of the most critical problems almost every organization faces today. It is a huge challenge as it takes a short-term toll on the time and energy of your HR team. Also, it impacts the company’s overall strategic planning, finances, and budget.
Effective workforce planning is essential for a company to identify issues with repeated understaffing in several departments. If left unidentified, it can impact the efficiency of the organization, resulting in the inability to accomplish organizational goals. Therefore, in a bid to improve their productivity, collaboration, flexibility, and engagement, companies should take workforce analytics solution into consideration. Apart from maximizing performance management, workforce analytics solution also helps optimize the company’s results.
At Quantzig, we understand the difference that workforce analytics can bring to your business. And to help companies maximize their efficiency, our team of experts has highlighted five key ways in which workforce analytics can offer a sharper collective eye to the HR team and help them in identifying possible future risks. But before jumping onto to the benefits of workforce analytics, let’s understand what exactly workforce analysis is.
What is Workforce Analysis?
Workforce analysis is the process of tracking and measuring employee-related metrics and optimizing an organizations human resource (HR) management and decision-making. This allows companies to focus on the return on value for every hire. Moreover, it helps analyze specific data to help identify workplace trends such as satisfaction with decisions, potential risk factors, and much more.
By leveraging a workforce analytics solution, it is possible to analyze data to have a clear picture of the current situation and make improvements to their HR strategies. This can optimize business results.
Benefits of Workforce Analytics
Benefit #1: Improves efficiency with automation
For any company, workers are their assets. Sometimes the tasks they do can affect their productivity or cannot provide the required results. This is where workforce analytics can help. By leveraging workforce analytics solution, companies can identify areas where tasks can be assigned to machines via automation. This allows employees to dedicate their efforts to other important and valuable activities.
Benefit #2: Boosts employees’ engagement
Workforce analytics goes beyond firing and hiring information and helps companies to understand the reasons behind the inefficiency of their employees and discover factors impacting the productivity. It helps in maintaining the current workforce instead of replacing it. The goal of workforce analytics is to unveil those factors that affect engagement and performance and to overcome them by fostering better conditions.
Benefit #3: Enhance hiring criteria
For business, finding new talent is always difficult regardless of a company’s scope or size. Workforce analytics can help in identifying exactly what is needed from a new hire based on the data of previous applicants, their success, and the needs of the company. Also, it helps in understanding new candidates based on their historical data to examine whether they would be a good fit or not. (more…)
It goes without saying that people are vital to the success of any company. The way in which companies recruit, train, and retain their employees has a major impact on their business performance. Today, human resource managers have access to huge amounts of employee data. However, the difficulty lies in collating, integrating, and analyzing data, which is highly essential for turning data into valuable insights. This is where advanced techniques such as HR analytics prove to be useful. HR analytics tools use HR and big data analytics to interpret the useful data and transform it into useful statistics.HR analytics help companies to understand what could improve their workforce management, create a team that consistently meets its targets, identify why certain managers continue to thrive whilst others burn out, and predict exactly which candidates are likely to succeed. That’s not all, here are some essential benefits of HR analytics that you cannot ignore:
- Improved hiring decision
HR analytics makes predictive analysis easier and helps managers to make the better choice based on historical data. HR analytics also prevent companies from making mistakes by understanding the past errors. Moreover, it allows the recruiter to learn more about candidates through online resume database, applications, social media profiles, and records.
- Training and development
Training is an essential part of workforce management for any company. However, if there are any gaps in the training process, it could cause some serious problems and increase the cost to the company. The training and development programs which are not handled properly can cause havoc to the budget of the company. Use of analytics tools helps the organization identify if employees are making the full use of the opportunities and the knowledge imparted to them during the training and development sessions.
- Employee retention
Retention of employees is one of the most challenging aspects of workforce management. HR analytics is an important tool for human resource managers to identify the reasons why employees leave or stay with the organization. It is highly effective in finding the skill gaps and areas where employees are struggling. Various tools like employee satisfaction surveys, team assessments, exit and stay interviews can be used to identify the reason for employee attrition and chart out the strategies to retain them.
- In-depth insights
With the help of advanced analytics tools, the company can gain deeper insights into the employee’s professional life. This can be done by tracking, sharing, and analyzing the performance-related data. Furthermore, the employee’s performance data could be used by the hiring manager to identify the great talents. This data not only provides more insights about the employees but also shapes the strategies to boost the employee morale, retention, and engagement.
- Re-engagement of candidates
Candidate records often go untouched or forgotten after the job posting is closed. Analytics allows organizations to re-engage a targeted group of candidates to determine their interest level for other vacant positions in the organization. It can also help reflect new positions, work experiences, or skills that might have acquired by the candidates since the last time they were engaged.
To know more about the latest HR analytics trends and tools
For ages, HR has always been about people management. The modern HR management era has seen a shift towards the use of data and machines to efficiently manage the workforce. A significant amount of data is available to the managers, which can assist them in identifying, recruiting, and rewarding the best personnel. The managers will no longer have to rely on intuition and rule of thumb to make HR decisions as the metrics can give them a complete overview and guide them to the correct decision. Organizations are always screening the developments in the HR analytics market to keep up with the latest innovations and best practices. Here are the top trends in HR analytics:
Embracing New Data Sources
Companies are realizing the power of analytics and are looking at new data sources in addition to incorporating all existing data sources to make an accurate analysis of their workforce. For instance, companies are encouraging their employees to engage in wellness programs such as bring your own wellness (BYOW). The BYOW concept relies on employees carrying their own fitness measuring devices to workplace allowing companies to collect data to organize fitness challenges or events such as exercising, yoga, or walking.
Capability Gap in People Analytics
Although a majority of the organizations realize the value of HR analytics, only a handful of them have the expertise to extract value out of the data to improve the HR processes. There have been numerous reports suggesting that only about 10-20% of the organization who strongly feel the importance of HR analytics is actually strong in this area.
Emergence of Dedicated Analytics Positions
Organizations are looking to narrow the existing capability cap in people analytics by hiring dedicated professionals to manage their HR analytics. This trend can be substantiated by a report from Deloitte that states that job postings for the HR analytics role have more than doubled from 2010 to 2015. Another report from BurtchWorks states that the entry-level data science role rose 14% last year with a median base salary of $91,000.
For more queries on how your organization can reap benefits out of HR analytics:
Business Challenge: Workforce planning and optimization. A professional engineering services provider wanted to synchronize its workforce allocation with corporate goals, in order to improve productivity and save labor costs.
Situation: Ground workforce staffing not synchronized with corporate goals
The engineering services provider’s corporate sales forecasts, labor plans, and budgets were not collaborating with the ground staffing, scheduling, and operational needs of individual plants, work-floors and work centers. This lack of synchronization was getting reflected on the corporate goals regarding productivity, sales, and revenue. Client wanted to implement an improved workforce management solution.
Solution/Approach: Use of forecasting and regression models, workforce analytics and payroll management
We utilized a bottoms-up framework, factoring in the needs of each plant, work centers and workload drivers, and made use of forecasting and regression models, workforce analytics and payroll management solutions. This helped in precisely determining the payroll hours, workforce allocation and labor planning for the each location’s workload, while improving the employee productivity and the likelihood of meeting their corporate revenue goals.
Impact: US$ 18 million savings through improved workforce planning
The engineering services provider received a new operating model through which it was able to link payroll hours to service requirements and corporate goals. Based on this, the client improved its staffing level, which reflected as US$ 18 million savings in the annual balance sheet.