All that You Need to Know About Workforce Analytics
With regards to taking decisive action at the time of a crisis, few factors and perspectives are more important than human resources. The workforce of a company is critical and a complex aspect of running a business. Employees can present different qualitative factors which are difficult to translate into numbers that work for analytics instead of clean, hard data.
Workforce Analytics vs. HR Analytics
While both terms (HR analytics and workforce analytics) are used interchangeably, there is a distinction between the two.
Workforce analytics is closely related to talent management and focuses on analyzing people data. Workforce analytics is also associated with analytical software which manages as well as reports on the employee data.
Human resource analytics on the contrary is concerned with several aspects of the organization as a whole. This could include HR operations on a daily basis, procedure efficiencies, and/or strategic organizational issues in other areas.
When referring to HR analytics, the reference should be to a broader organizational commitment to the full-scale data collection, reporting, and analysis at multiple organizational levels.
Manifold Uses of Workforce Analytics
The key to use workforce management to answer various strategy questions are data analysis & software. It can be used to identify trends, analyze performance, and track such examples of workforce analytics KPI.
- Recruitment & Talent Management: HR teams use critical metrics for tracking their ability & efficacy in recruiting, sourcing, and managing talent. Talent management metrics aid in the monitoring of supply-and-demand trends in order to meet present and future hiring requirements for in-demand skills.
- Employee Retention- Measuring employee retention allows you to see how hiring, training, and HR management strategies affect employee tenure in one’s company. Low retention can have a negative impact on the bottom line due to lost productivity due to vacant positions, recruitment costs, and training costs.
- Employee experience: This includes interactions with candidates from the moment they begin interacting with an organization until they leave. Employees who hold a positive employee experience are more productive and engaged, and they stay with the organization for longer periods of time. Employee surveys and performance reviews, for example, can help one gauge how their employees feel about their employer.
- Employee performance: Common metrics for tracking the effectiveness of your workforce based on output and productivity measurements can include revenue per employee, sales per employee, & other qualitative data.
- Employee absenteeism: This extends beyond regularly scheduled & occasional missed days and is also known as habitual absenteeism. Is there a problem with absenteeism among employees or units that is affecting business outcomes? This can have an impact on productivity and morale & must be measured as well as addressed as needed.
- Training and development metrics are important workforce planning indicators because they reveal the effectiveness and efficiency of training, onboarding, and upskilling. Training spend on each employee, new skill acquisition, and annual training hours are all good KPIs to track.
Growing Significance of Workforce Analytics
Remember that the workforce analytics is a practice of examining employee-related information and its impact on business performance using data and statistical models. Human capital management or (HCM) is a set of policies and practices that help you hire, develop, and optimize your workforce. It includes data analysis and reporting. This data assists you in identifying potential problem areas & making informed decisions about how to meet improvement objectives. Identifying a rising rate of employee turnover, for example, can lead to the development of retention goals and tactics to achieve those goals.
Benefitting Organizations in Myriad Ways
Workforce analytics can assist organizations in more efficiently addressing employee management challenges or opportunities. The ability to identify prospective candidates that best match organizational needs and work culture is one of the organizational benefits.
• The ability to predict which workers will be high performers in order to provide the appropriate resources to retain them.
• Determine the requirement for future organizational needs so that talent requirements can be met through recruitment.
• Identify the factors that indicate employee engagement & job satisfaction for maintaining a high-performing workforce.
• Identify and prioritize emerging talent for the future succession planning.
Wrapping Up
Internal data collection can help you augment your company’s productivity. People analytics can increase your company’s efficiency by focusing on human resources and discovering ways to empower the team, resulting in happier and more productive employees.
