HR analytics enables HR professionals to make data-driven decisions to attract, manage, and retain employees, which improves ROI. It helps leaders make decisions to create better work environments and maximize employee productivity. It has a major impact on the bottom-line when used effectively.
The cost to replace an employee could be over 200% of their annual salary, according to AmericanProgress.org. The true cost might even be higher due to training/onboarding, lost productivity, recruitment, and decreased morale among other employees. Losing an employee that’s in the top 1% of performers could mean the difference between growth and decline. For this reason, decreased attrition and improved employee engagement are often top priorities for HR departments.
Through this data-driven approach, HR analytics can illuminate the major causes of attrition, and new policies, along with training programs, can be put in place to help mitigate the problem. Human resources analysis will reveal these issues, and then it will be up to leadership to act. It’s also possible to spot an at-risk employee before they leave so pre-emptive actions can be taken to resolve issues. For example, a once high-performer may not be as productive because he feels he or she is underpaid. An analysis of productivity alongside a comparison of market-value salaries can help spot this.
Not only do organizations need to ensure they have employees with the right skills presently, but they also need to be able to anticipate future departures or changes in the organization’s needs, particularly for business growth. HR needs a data-driven approach to successfully navigate the ever-changing composition of organizational talent. This ensures that workforce and capacity planning is optimized.
Workforce planning helps HR to be aligned with the goals with the business and upcoming changes. With a combination of planning analytics and Employee analytics it can help departments to create a right set of the workforce and within a right Turn around time.
An engaged workforce is critical to attracting and engaging talent. The challenge is determining which factors will result in revenue for the company. This makes employee engagement a very difficult metric to quantify and take action on.
Employee Engagement Analytic can help HR’s know which employees are motivated and which employees are not. With the help of this information, they can impact the employee attrition rate and make the workforce more engaged and do structural changes if required for the benefit of the whole workforce.