HR analytics is the application of statistics derived from the analysis of employee-related factors to improve business outcomes. In other words, gleaning as much as you can about your employees best abilities and how you can match these to the best way forward for your business.
People are the backbone of any company and are vital to its success. Finding the right talent to begin with is important, but measuring that talent effectively within the context of business goals means understanding and utilising their capabilities as efficiently as possible with the aim of keeping the best with you in the long term.
Working the figures
You appoint staff based on their level of expertise and skills. You also need to know their capabilities – their strengths and weaknesses, their drive and commitment – which allows you to identify the competencies you need in your business to ensure success. Statistics will give you a picture of what you have, and what you might still need.
- HR analytics means gathering data on your employees and applying this to the business strategy in a positive mix of talent data, planning and goals. It’s often referred to as: People Analytics, Talent Analytics, Workforce Analytics because only the performance levels and competencies that pertain to HR are involved.
- HR Analytics relates to: the measurement of qualifications, experience, capabilities; how many people are trained; how many need to be trained and what training is preferred; how many tend to stay within the company; attrition expectation; how many applicants per year; diversity; where to source the best candidates, etc.
- All of this information impacts on your business and helps you to plan. This data will allow you to: ascertain where you might need personnel; determine training and productivity challenges; and ultimately avoid losing good employees.
- Issues of dissatisfaction will be more clearly highlighted, allowing preventative action to be taken. This is a good way to assess if your salaries and benefits packages are keeping up to date with market trends and employee expectations.
The analytical process
Before you can manage talent effectively for enhanced business growth, you need to identify the core competencies your business may require currently and in the future. This analysis will assist with candidate matches for diverse jobs, and whether you can provide the training necessary for your company’s needs.
Analysing the capacity of your employees helps operationally to improve performance where its needed. Do you have the right people and number of people in any given area? What staff improvements do you need to make to improve your company’s revenues? What do you need to reconsider with regard to rewards and benefits to keep your staff happy and ensure business development? This approach may appear costly, but when you consider the expenditure of constantly seeking and replacing good staff, it makes for good business sense.
The benefits of HR Analytics
HR Analytics gives Human Resources Practitioners the tools to become strategic business partners as they help to motivate business goals in the following ways:
- Providing assessments that will assist management to make informed business decisions
- Contributing to strategic planning with regard to recruitment and retention
- Adding confidence to management decisions around human capital
- Increasing employee satisfaction and performance, as well as productivity and efficiencies
- Forecasting future workforce requirements
- Developing customised training programmes that will benefit the right staff at the right time for the growth of the company
- Ensuring there is a better return on human capital investment.
The new value of Human Resources
At the HR Analytics Institute we believe there is a smarter way to get the best out of your staff and improve your business. Not only do we clearly see the potential to improve business through better relationships, but we are passionate about training HR practitioners to understand the value of their interface role between staff and management. Our practical courses will enable you to play a far greater role in strategic decision-making within the business as a whole.
Join our courses hosted in Johannesburg in June and Durban in July. Click here for more information.