Today, businesses have more access to innovative tools and resources designed to measure and improve performance than ever before. Using advanced technology to collect HR data analytics, or people analytics, has become the new standard. While performance metrics help businesses understand the past and protect the present, predictive analytics tell the story about the future.
Tracking HR analytics and key performance indicators (KPIs) is producing objective data that is changing the way businesses make decisions. HR professionals who understand how to examine raw data and identify actionable insights will help drive better decision-making throughout the entire organization.
I Got A Hunch
In the past, companies based decisions on what they thought would work best, what they believed to be the right path and who they felt showed potential. But in this age where data helps shape and predict future outcomes, showing, not telling, is key. The single department that has the capability to deliver the most valuable information about a company’s talent is Human Resources.
Harvesting HR Metrics
More and more, executives are welcoming strategic input from experienced members of their HR team. Savvy human resource professionals are learning how to leverage technology to improve productivity, increase employee retention and develop and sustain a positive workplace culture. These valuable insights are making HR an indispensable strategic planning partner.
Where To Start, or The ABCs of A+C=R
It does little good to have data lying around, basking in the sun. Executives and CEOs need tangible results that can inform their decisions about workforce planning. HR can provide that valuable data. To step up your game and earn your seat at the executive table, consider the following 5 steps: 1. To successfully track performance that delivers tangible results, you must first gain a clear understanding of the company and its performance objectives 2. Develop specific and measurable metrics and KPIs by using this equation: A+C=R
Asking the right questions + Collecting applicable information = Results that effectively inform decision-making
- Make necessary technology upgrades/adjustments so the data you need can be easily accessed and compiled into useful reports
- Present your findings
- Wow company leadership and secure your position as a strategic asset
What Are The “Right” Questions?
Excellent question! The authors of the Association for Talent Development’s article, HR Analytics: Get Started by Thinking Big suggest thinking like an investor. If HR really wants to make an impact on executives and provide input that drives strategy, it needs to ask the questions a potential buyer or investor would want to know the answers to. This may mean a break with tradition. Investors tend to focus on risk, so if you provide data that supports how your work is mitigating that risk, you’ve just got yourself a deal! Or at least you’ll capture the attention of a room full of executives.
To secure high level buy-in on a long-term basis, consider reframing your metrics so they focus on key areas where risk is highest. For example, if you’re seeing a low employee retention rate in one department, you might collect employee survey responses that help pinpoint a practice or identify a skill gap. Data analysis may suggest implementing a new training or updating performance review practices to improve employee retention.
Key Areas of Risk
Capacity: Do you have employees with the knowledge and skills necessary to meet performance objectives?
Leadership Potential: Do you have the caliber of leaders in place to achieve company goals?
Diversity: Are you maintaining a diverse workforce?
Turnover & Retention: Are you experiencing a revolving door in key positions? Do your top performers choose to stay with the company long-term?
Talent Acquisition: Are there factors in the marketplace impacting how you reach qualified applicants?
Solve Business Problems with Human Resources Data
Are you uncovering key insights that can impact your bottom line? Paycor’s Workforce Insights helps organizations get deeper insights into their people data, which means spending less time searching for data and more time solving their biggest business problems. Check out this short video here. Like what you see? Contact our team to schedule a personalized demo today.
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