While companies have to make decisions based on a variety of considerations and viewpoints, when it comes to taking action, few are as important as human resources. The workforce of a company is vital but at the same time one of the more complex sides of a business. Instead of tidy, quantitative statistics, workers may pose a range of contextual considerations that are difficult to put into figures.
Even so, the human capital of an enterprise may be its most important asset. Therefore, developing a deeper understanding of your workforce can provide better answers and provide you with a competitive edge. Furthermore, more than serving as a way to punish workers, labour analytics — sometimes referred to as human analytics — can inspire the staff by providing better visibility into what works and does not work. It can also help to uncover all the tools that employees need to be successful.
What is Workforce Analytics?
Workforce analytics, the component of HR analytics, are used to monitor and analyse employee-related data to improve the leadership and decision-making of human resources organisations. The profession reflects on much more than hiring and firing by also concentrating on the quality gain for each recruit. It also highlights more specific data to help identify trends in the workplace, such as possible risk factors, decision satisfaction, and more.
Workforce analysis extends beyond examining current employees and includes the evaluation of job-related patterns. For instance, businesses can identify peak periods of job applications during specific times of the year and adjust their recruitment strategies accordingly. Additionally, this analysis enables the calculation of diversity initiatives and employee engagement without relying on invasive or unreliable methods that may lead to inaccurate conclusions.
Key Benefits of Workforce Analytics
More than tracking the number of employees and what they do, workforce analytics provides a comprehensive view of the employees of your organisation designed to interpret historical trends and create predictive models that lead to insights and better future decisions. Some of the key benefits of analysis of the workforce include:
- Find areas where automation can improve efficiency–While employees are an asset to a company, the tasks they perform can sometimes reduce their productivity or yield minimal returns. Workforce analytics can identify areas where tasks can be relegated via automation to machines, allowing employees to devote their efforts to more important and valuable activities instead.
- Improve employee engagement by understanding their needs and satisfaction–In addition to simply searching for information from firing and hiring, workforce and human analytics can help a company understand why its employees are not doing their best and the factors that affect productivity. This is more to retain rather than replace the current workers. The aim is to discover and resolve certain factors that affect quality and engagement by fostering better conditions.
- Create better requirements for hiring new employees and provide a clearer hiring process–it is always difficult to find new candidates regardless of the size or range of an organisation. Workforce analytics can shed light on exactly what a department needs from a new hire based on past applicants, their success, and the needs of the company. More importantly, on the basis of this historical data, they can understand new candidates to determine whether or not they would be a good fit.
Key Metrics that are tracked by Workforce Analytics
- Employee efficiency – We're always thinking about the 9-5 business day, but for many workers, the current reality means that working hours seem to be more versatile and adjustable. Alternatively, developing a graph of efficiency that includes a couple of different data points would give a much better understanding of how employees work.
- Early turnover – Another important area that is often overlooked is how quickly employees leave on their own when measuring satisfaction. A high early turnover rate is an indicator that both expectations and employee satisfaction are not being met.
- Commitment–This may seem superfluous, but it is more likely that employees engaged in their work will be productive. Measuring engagement involves monitoring employee satisfaction, stress levels, and the confidence of staff in the values of the company. Strong dedication is a great sign that the job of HR is being completed.
Internally concentrating on your data collection will help you improve the profitability of your market. Through tailoring your human resources and finding ways to inspire your employees, analytics through people will improve the productivity of your company, contributing to happier and more productive workers.
Ifeoma is a Business Analytics and Research Consultant at Industrial Psychology Consultants (Pvt) Ltd, a business management and human resources consulting firm.
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