There is no denying that the function of human resources has changed in the modern company. The most successful companies have found a way to turn their HR teams into business partners that generate real value for their firm. There is no standard way or manual to follow when trying to create a world class HR function, but one of the main tools HR is using to transform itself is through the use of workforce analytics.
Workforce analytics, or HR analytics, means something different to each company and will be executed differently based on your company’s culture, maturity and willingness to invest. At the highest level, providing HR analytics means using the data at hand to generate insights about the company’s workforce. Understanding the workforce will help company leadership make better informed decisions about managing their people assets by measuring ROI on HR-related investments and controlling the costs associated with benefits, turnover, training and much more.
How is HR Analytics Helpful?
Some real use cases of HR analytics include calculating the cost associated with new hires and determining what factors might increase employee retention. It can help us better understand the value of our training programs and project hiring needs over the next several years. It can help us identify and profile high-performing employees as well as recognize the need for development. It can be used to identify trends in our workforce that may completely change a strategy, save the company significant dollar amounts, or better utilize the tools and people we currently have.
Look for Quick-Wins
There are an endless amount of use cases for HR analytics, but it can be challenging to convince your leadership team of the value or figure out where to begin with building an HR function. The process will seem overwhelming, but start with the data you have and look for the quick-wins that will show leadership and your business partners that there are insights to be found within your people data.