Strategic use of the statistics you gather from Human Resources (HR) analytics can make a powerful difference in the success of your business. That’s why forward-thinking businesses have embraced data analysis in the interest of business performance and, ipso facto, higher profit margins.
So what are the three most important practices you should be doing with your HR analytics? We’ll tell ya!
Believe it or not, companies used to not collect all that much in-depth data on their employees and hardly any on their consumers. If they did collect employee data, it tended to focus on the past – the employee’s history with the company, number of days absent, compliance and retention.
Today, companies collect much more data and not just on their current employees. Data is regularly analyzed on brand image, potential recruits, customer reach and retention, demographics, and hiring patterns. The more data you gather, the more you’re able to interpret. For example, one report found only 30% of the US workforce is actively engaged at work. That’s a pretty low percentage all things considered, right? Not exactly: if you factor in an internal data analysis that revealed 82% of the time candidates are placed in the wrong position, that low percentage of engaged workers makes more sense. And if we get proactive with this information, business owners and HR personnel can work to ensure the right people are in the optimal positions.
Knowing Your Consumers and Your Team
Unilever VP of HR for UK & Ireland Placid Jover said it best:
“It’s key to realize that today we compete based on insight. It doesn’t matter whether it’s soup and soap, fizzy drink or cars, success is based on knowing your consumers, users or shoppers and their habits, and then being able to quickly mobilize your organization to embrace and action the insight.”
There really is no substitute for having a thorough grasp of your employees and your consumers. For the employee side, when you have a team you can rely on to intuitively spring into action, you’re far less likely to lose out to your competition or find yourself and your company at the center of a public relations or legal debacle.
As far as your consumers go, if you can predict what they want before they do, you put yourself on the cutting edge in providing them with the solution they need.
Building a Better Business Strategy
Using HR analytics and data analysis when approaching your business plan can lead to new and innovative approaches to your strategy. In the case of sportswear giant, Adidas, analysis of HR analytics caused an increase in employee engagement levels and revamped how management, communication, and other departments work together. Three driving core pillars – data, metrics, and the employee experience – were able to provide them with insight into “employee behavior, skill-sets, and talent.” Combining a business strategy with a people strategy helped work toward the betterment of the company as a whole.
One way you can gain more insight into your HR analytics is with ACAwise! While our main focus is Affordable Care Act compliance, the employee information you enter to complete ACA e-filing can offer key insights into the healthcare plans you offer as well as employee needs, attendance, and enrollment. Schedule a free demo today to learn more about the analytics reports you can generate through ACAwise as well as how it benefits HR professionals as a whole!