Is your HR team sitting on a data gold mine? Are you tracking recruitment data, career advancement data, professional development data, absentee data, employee satisfaction data, and much more? Do you know how to analyze and use that data? As our professional and personal lives become more technology-driven, large amounts of data are being generated. How is your HR team using data to make your processes better, help you better understand your workforce, and support your organization’s strategic goals?
Sure, using HR data can be challenging – and shall we say even a bit scary at first? But when your HR data is used well it can help your leadership team make better decisions, improve employee morale, optimize your processes, and even improve the company’s bottom line.
Let’s dig deeper into why now is the time for HR to use data.
Data-Driven HR = Intelligent HR
HR is typically viewed as people-focused rather than data-focused. How can you bring your HR team to the place where data is a natural (and expected) part of their work? Even though HR teams have access to lots of data, it seems like too many HR teams spend most of their time on administrative tasks. Even if an HR team does collect data, it may not be using that data in an intelligent way that supports the business and strategic goals. Does that sound like your team? Where do you find a good balance? Well, there is a way to make your HR team an invaluable partner to the organization as a whole.
This is where data-driven HR comes into play. Your HR team can use the data you collect to:
- make better HR and executive leadership decisions when it comes to your talent-related issues
- improve your ability to understand and analyze the business impact of your workforce
- make your HR processes, policies, and operations more efficient and impactful
- improve the overall wellbeing, productivity, and engagement of your employees
Why is this important? Each of these areas can have a positive impact on your organization’s ability to achieve its strategic goals and increase its bottom line. That’s why your HR data is critical.
Data And Analytics = HR’s Super Power
Once you’ve gotten to the point where your people data is a valuable member of your HR team, then you can start organizing your disparate data on multiple systems into one dashboard. Then you can start asking the good questions that will help you get the answers you need for the business.
For example, according to data from the U.S. Bureau of Labor Statistics in January 2022, 4.5 million people voluntarily left their positions in November 2021. This was an “all-time high” according to the Bureau. If your organization is experiencing unprecedented attrition, as a data-driven HR team you could dig deep into your people data to determine why. Here are some examples of questions you could ask and data you could pull regarding your attrition and retention data:
- Who are the people leaving the company?
- Why are they leaving?
- What data do we have about them?
- Did they not feel a sense of purpose?
- What did they like/dislike about their benefits?
- What types of management and teams do they prefer?
- Can we apply that data to improve retention?
Once you have answers to pressing issues, HR can play a key role in solving the company’s challenges. It’s important to turn from a reactive HR team to a proactive team by analyzing your data, looking for trends, and then proactively putting solutions in place.
Remember, data and analytics isn’t just an IT skill. The more you as an HR leader empower your team to learn data and analytics, the more your HR team can use that super power to support your organization.
Making Workforce Data Central To Your HR Strategy
Your workforce data should be central to your HR strategy. Let’s cover a few areas on how to use your workforce data and analytics effectively rather than relying on gut feelings.
- Streamline processes. In the current economy, there is a more intense competition for talent. Your HR team can use candidate data to see trends that will tell you the best tactics for recruiting and onboarding new hires. Which channels bring you the best candidates – social media, job boards, referrals? How long does it take for a candidate to get through the process before they get hired? How much does it cost to advertise, attract, interview, select, and onboard a new hire?
- Support DE&I goals. In a recent study, the HR Policy Association found that HR executives identified managing diversity and inclusion as their top concern. Is your HR team tracking the diversity of new hires? Do you know the degree of pay equity among employees across the organization? Does your company value and show an inclusive culture?
- Examine benefits. It’s critical that your benefits package you offer your workforce is effectively meeting their needs. Do you know which benefits are most used among your employees? Have you calculated your total benefits expense? Are there benefits where you can cut costs and offer other benefits that are more in-demand?
- Measure success of professional development. A highly skilled and competent workforce is critical for your company to grow and thrive. Do you track the training hours of your employees? Do you know your promotion rates over time? Can you determine if your current training initiatives are successful and working? Have you identified gaps and determined where additional training is needed?
- Leverage offboarding feedback. Employees that leave your organization can be great resources for feedback. Do you have standardized exit interview questions? Do you use feedback to make improvements for the existing employees? Are you discovering key opportunities for changes to current processes?
Wrapping It Up
Are you ready to move away from gut feelings, instinct, and intuition and start using your HR data to transform your decision-making? Technology is changing the way HR relates to employees, executive leadership, and the business as a whole.
Join your data-driven HR peers. Get a free live demo today.
Need some tips on how to incorporate more HR data into your decision-making? Employee Cycle can help! Schedule a demo to see how our HR analytics dashboard can help you engage with your employees and leadership like never before.