*With the right data analytics tool, you can answer your leadership’s most urgent questions. *
Your CEO asks you to come up with a plan to reduce labor costs. What do you do? Start digging through old paper files? Ask department heads for a breakdown of hours worked by employee? That will take forever.
To help solve the “where’s the data and what can I learn from it” problem, many organizations are turning to data analytics tools to help them get deeper insights into their “people data” (e.g., all that data buried in your HR, payroll, and timekeeping software).
Your Boss Asks: “How Much is Unplanned Overtime Costing Us?”
In most industries, labor costs account for 10-20% of total revenue. While every organization plans for labor costs, it’s the hidden costs, like unplanned overtime, that impact the bottom line. With the right data analytics tool, answers to your labor costs problems should be only a click away. Imagine if you could instantly create an overtime report and then drill down to specifics to identify problem locations, departments and managers.
Your Boss Asks: “How is Employee Turnover Impacting Productivity?”
What keeps bosses awake at night? According to FastCompany, it’s talent retention and turnover costs. When one employee leaves, everyone is affected - from recruiters and hiring managers investing time to interview candidates, to colleagues who are forced to pick up the slack. And when you’ve found a replacement, new workers need time to learn. High rates of employee turnover directly result in lower worker productivity, impacting your bottom line.
Before you manage turnover, you must be able to predict it. Data analytics can help you analyze labor trends across your organization. The right tool enables you to easily create monthly turnover charts that identify locations and departments experiencing the most turnover. With immediate insight, supervisors can work with managers at these locations to examine current practices and identify necessary changes to predict, manage, and decrease turnover.
Your Boss Asks: “Are We Vulnerable to Compliance Violations?”
The Affordable Care Act (ACA) and new EEOC reporting regulations are still in effect. Your boss might be willing to hope they go away, but she’d probably be wise to have a plan in the likely case they remain around in some form or another for quite a while. To prevent costly compliance fines and employee lawsuits and to stay ahead of changing regulations, organizations need a data analytics tool that can provide instant, actionable insights.
Take the EEO-1 report for example. Aimed at eliminating pay disparities in the workplace, this new report will allow the government to take a deeper look into your pay practices. (And you definitely don’t want to give the government a report unless you’re entirely sure it’s accurate and comprehensive.) Data analytics tools should offer interactive and customizable dashboards that examine pay disparities throughout your organization so you can identify problem areas and take immediate action before problems become violations.
More About Data Analytics
READ MORE: - A new IBM study identified six forces propelling organizations to use analytics to better understand and manage the workforce. Here’s a great summary of that excellent work (it’s a quick read!).
CONTACT US: Want to see how Paycor can help you use data to better manage your workforce? Click here to speak with a consultant.
Sources: Chron.com & Fast Company