Are you leveraging HR analytics to truly improve business metrics? There is a great deal of upside to doing so, including (1) a greater understanding of employee knowledge, skills, and abilities that drive business outcomes specific to your organization; (2) the ability to make people investments that truly deliver results; (3) a way to calculate the ROI of investing in your people; and (4) the opportunity to take the lead in making HR processes business-focused, making HR a strategic business partner for the core business. Our question to you: if you’re not utilizing HR analytics in your role, why not?
As you can imagine, the implications of HR analytics can be far reaching – across HR as well as an organization. Think about all you can achieve by harnessing the power of HR analytics, projects such as:
- The development of predictive talent profiles to aid in succession planning and inform the selection and development of employees.
- Survey development and the continuous assessment of employee attitudes across the lifecycle of employee tenure.
- The utilization of targeted organizational assessments in times of organizational change (e.g., change readiness, climate assessment, wellness assessments).
- The prioritization of survey categories or behavioral competencies based on their impact on business outcomes.
If part of your hesitation to fully embracing HR analytics is confusion as to what it is and how to utilize it, we’re here to help. Tomorrow at 1 p.m. EST, we will be hosting a webinar that provides an introduction to using HR data to drive actual business outcomes. The session will cover what questions can be answered with people data analytics, how to identify which ‘level’ of HR analytics your organization is ready for, and how to integrate data sources to tell a complete story. A sneak peek is below.
HR Analytics Defined
Data in and of itself is not all that interesting – it is through the combination of data, analysis and business results that better talent decisions are uncovered. A great example is an organization that is looking to reduce turnover. The leading assumption at the organization is that people are leaving due to treatment by the immediate supervisor. Analytics can be used to test this assumption and determine the true cause of high turnover – whether it be the immediate supervisor or something else entirely.
Okay – so what exactly is HR analytics? Simply put, HR analytics is understanding the exact connections between people data and business outcomes. The goal of any people analytics project is to gather and understand the connections between people data in order to inform organizational and HR that drive actual business results—not just HR metrics. Many times, the analysis requires multiple data sources, involving the actual collection of data (such as the distribution of a survey) as well as use of previously collected data (e.g., sales, data, operational data, attrition data accumulated over the last year, selection data of all successful job applicants).
We believe there are four levels of HR analytics, all of which stem from the complexity of people analytics questions. The levels are: data collection and management; dashboards & reporting metrics; tracking trends across time; and predictive analytics against business results. To gain more in-depth details on these levels (and more), join us tomorrow for our webinar!