People are the most valuable asset of every successful business. Thanks to rapidly evolving artificial intelligence, human resource managers have more employee-driven data available to them than ever before. Internal data is collected on employee demographics, payroll, social network, performance, and engagement. External sources may include the labor market, population, and LinkedIn data. The proper use, analysis, and reporting of this influx of data is critical to an effective organization, and HR departments are increasingly looking to data analytics to inform key people decisions.
In order to operate productively, HR leaders must strengthen and systematize everything they are doing with data. HR is the brain of an organization, and staffers no longer have to depend on gut instinct to make the best decisions for it. Data can be gathered in real-time to support in-the-moment actions.
Here are 5 ways your company should be using data analytics for HR management.
1. Attracting and Retaining Top Talent
A data-driven approach toward HR plays a critical role in the hiring process. Not only can you strategically match potential employees to the focus of your business, but knowing which hires are more likely to remain with the company longer than one year can also be determined.
Where retention is concerned, data analytics allows you to see which factors lead to employee dissatisfaction and what encourages loyalty to the company. It also keeps you from ignoring the value of an effective staff member which can lead to an unwanted departure.
2. Training and Development
Employee feedback is an excellent tool for determining weak spots in training and educational programs. Analytics can be used to uncover how well information is grasped and processed so that adjustments can be made to personalize and customize developmental materials.
Vibrant training and development that is endorsed by employees result in a more productive, satisfied team. Data can be analyzed to identify the strong points in programs and direct the company to areas that need improvement.
3. Performance
It is easy to identify top performers, but being able to evaluate performance, on the whole, can help you to uncover results that may otherwise go unnoticed. When used properly, data analytics can identify performance trends and link workforce productivity to concrete results.
Employee performance benchmarks can be established through data analysis that will help existing and incoming workers understand the importance of those qualities. By tracking the impact employees have in their respective departments, data is matched to the bottom line.
4. Motivating Your Workforce
Employees tend to thrive on positive feedback and the promise of justifiable reward. Workers will find a new commitment to the company when their values are acknowledged through fair pay-raises. When compensation is based on actionable information, employees are motivated to do their best and HR is functioning properly.
Data analytics can help you spread the spotlight on star performance deserving of promotions and other incentives. This tends to lessen internal competition and heighten the desire to cooperate and perform for the betterment of the company.
5. Employee Engagement
Anonymously asking for feedback from employees encourages them to speak up. Through data analytics, you can know what your people are thinking and which aspects of the operation need attention. Engaged employees feel vested in the company, and they are generally more excited about their work. The result is a workforce that will often perform better than average and team members who will be less likely to look for career opportunities elsewhere.
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