Companies produce a lot of HR data. Especially in larger organizations with a big employee base, HR is a significant part of operations. Human resource data can be used by businesses to track trends and measure productivity or identify growth areas.
Many businesses don't leverage this data enough. This can lead to decisions that are not in line with the capabilities or capacities of the human capital. In manpower-oriented companies, particularly in the service sector, HR KPIs are very relevant to business goals. Business leaders and managers can use human resource analytics and KPIs to make the most of valuable insights.
KPI reports are visual representations of key performance indicators data. This format makes it easy to analyze and provides immediate insight.
Advaiya's BI and analytics solutions provide HR Analytics dashboards that include reports, and analytics features. In HR analytics software, all your reports can be found in one location. All your data is consolidated, and you can access it all at once, which speeds up data collection and improves efficiency.
Using data analytics in human resource management
The HR department in traditional terms is often seen as old-fashioned and most HR work is based on intuition. For a long time, HR has done things in the same way and because HR is not known for bringing in revenue like sales or operations we typically don’t think about measuring or quantifying its success.
However, this is possible through HR data analytics. Many of the problems we have just mentioned can be solved by being more data-driven and knowledgeable about HR and analytics.
Let’s ask a few questions:
- What is the annual turnover of your employees?
- What percentage of your turnover is due to regrettable loss?
- Are you able to predict which employees are most likely to leave your company in the next year?
These questions cannot be answered without HR data. The first question is easy to answer for most human resource professionals. However, answering the second question can be more difficult.
This second question requires you to combine data from multiple sources, such as Human Resources Information System (HRIS), and a performance management system. This is where HR analysis tools and dashboards come in.
Analytics in HR provides insights into the best ways to manage employees and achieve business goals. It is crucial for HR teams they first identify the most relevant data and how to use it to maximize ROI. An HR analysis software can help you understand your business and assist you in developing plans to optimize talent investment while effectively monitoring recruitment, development, accountability, retention, and other workplace initiatives.
How can HR Analytics help organizations track their employee KPIs?
Employee engagement KPI -
Absenteeism rate
The absenteeism rate is an indicator that measures the absence rate for employees due to delays, sick leave, or excused absences. This indicator will help you plan for future absences and adjust your business strategy in order to avoid them.
The average hour worked data can be used by HR managers to calculate key HR KPIs. This will allow you to see the cost impact of absenteeism. It will be much easier to budget for preventative strategies once the true cost of absenteeism has been established.
Talent rating
HR analytics can help identify high-performing new hires. This meaningful insight helps to determine if they should move into fast-track programs.
Average stay
Many employees leave because they don't have enough time to stay in the same job. Many employees will look for opportunities outside the company if they aren't promoted.
HR analytics help you identify the average time it takes an employee. It will ascend, simply count the time it takes each employee to complete the same task. To divide the result by all employees. It might be a good idea for you to talk with management if there are not many opportunities for growth in the company.
Productivity KPI –
KPIs that measure the efficiency of your workforce include the employee productivity rate. This KPI measures efficiency by calculating how long it takes employees to accomplish a task or achieve a goal. It determines the efficiency of each employee's output and the speed at which they can complete the task. It can be used by HR departments to determine if operational adjustments are necessary to improve employee as well as enterprise productivity.
This KPI is difficult to quantify as it only measures the work done. Some sectors may find it difficult to add quality measures to the output. It's often difficult to measure quality. However, with business intelligence tools for HR, HRs can measure the metrics and indicate how productive a team is.
Sociological KPI–
Sociology gives managers the necessary knowledge to understand their customers and employees. Sociology knowledge allows business leaders to respond to employee problems and meet customer needs in a way that is not possible for others.
Sociology at work can help you cultivate innovation and increase your competitive advantage. Companies are working to reduce gender inequality and reap the benefits of gender diversity within their companies.
It is important to understand the size of the gap and its causes in order to close it. Many companies lack sociological data about their talent pipeline and their workforce over time. They are unable to pinpoint problems and launch targeted interventions to address them. While monitoring the gender pay gap is a useful baseline measure, it doesn't provide enough information.
Advanced analytics is required to enable organizations to measure sociological metrics such as gender diversity by role and female-to-male ratio, ethnic diversity, and turnover rate per group. This will help them improve their work culture.
Recruitment KPI -
The recruitment KPIs enable HR professionals to optimize their recruiting process, increase productivity, and improve their performance. In-the-moment actionable insights such as employee turnover rate and cost per hire, conversion rates, dismissal rates, time-to-fill, part-time employees, and other metrics allow HR professionals to make smart strategic decisions in order to achieve their recruitment goals.
These insights are crucial in creating a healthy HR process that ultimately leads to sustainable development for the company and its employees.
Training and development KPI -
Employee L&D and courses are directly related to the company's activities.
This HR KPI is designed to increase employee productivity. This HR KPI helps employees to feel more loyal and satisfied when they work for the company. Every year organizations invest a lot of their budget in training their employees. Human resource analytics help organizations visualize training and development KPIs to calculate ROI and make better decisions.
It's useful to compare the HR KPI numbers of similar organizations when setting these targets. Using predictive analytics in your HR department is a great way to find areas of improvement by comparing your performance indicators with the best-in-class industry competitors. You can study their methods and then reevaluate your own to learn best practices and how you can implement them in your company.
To create a dashboard and interactive visualization for your human capital management department, take Advaiya's unique Power BI consulting service. Advaiyaoffers tailored BI solutions to ensure that your dashboards are easy to use and highly outcome-driven.
Vikram Jain
Vikram is a Practice Director at Advaiya. He has an MBA in Marketing and Finance, certified Six Sigma black-belt, certified Amazon Associate Architect and Microsoft Certified Professional, bringing in world-class strategies and practical experience in establishing successful business. His interests are in Cloud, Mobile, Social, Enterprise Architecture and emerging technologies.
Posted by Advaiya
BI and analytics solutionsHR analysis toolsHR analyticsHR Analytics dashboardsHR data analyticshuman capital analyticHuman resource analysis toolshuman resource analyticsHuman resource data analyticsHuman resource managementHuman resources management
