What is Workforce Analytics?
Workforce Analytics is the process of analyzing human resources data to enhance organizational efficiency and improve HR functions.
This process is essentially data-driven and focusses on achieving specific goals regarding workforce, employee productivity, elevating the company’s results in terms of work, revenue, and more.
Workforce Analytics can also be called HR analytics, talent analytics, or people analytics. This process helps in making powerful decisions by deriving insights from the data and utilizing the analytics in the right way.
These data-driven decisions can optimize all the process across the entire employee lifecycle right from recruitment, performance management, employee engagement to employee retention.
The face and usage of HR analytics have changed and has been changing ever since its inception. From general data analytics to the new-gen predictive analytics, it has witnessed tremendous growth. This has helped the organizations to tackle the new increased pace of work and the dynamic environment.
The approach has transformed from reactive to proactive. The intuitive visualizations, drag and drop ad-hoc reporting, and machine learning makes up for a workforce analytics tool that is usable and comprehensive.
The trends of Workforce Analytics and its impact on organizations:
With the changing face of people analytics and various BI tools, the trends and patterns concerning human resources have also changed. Below are the few ways HR analytics has changed and impacted the organization:
HR Metrics and Workforce Analytics
1. HR and its operations
Based on research, a very limited number of organizations are using high-end analytics tools to resolve their HR issues and improve efficiency.
This gives these companies the first-mover advantage and for deriving innovative and intelligent insights from the data and utilize it to not just improve HR operations but accelerate organizational growth.
The analytics is transforming the way the conventional HR departments work and operate. This has changed the way talent acquisition happens, the measurement and assessment of employee performance, prevention of attrition, and improvement in retention happen.
Based on another Deloitte study, people analytics has helped in improving job acceptance rates, limiting the number of HR tickets, and enhancing compensation policies.
HR analytics has certainly become more than one-time process but is being used in the organizations in real-time and extensively to revolutionize the HR and organization.
2. HR-stakeholders’ interactions
As the organization and technologies changing with time, the interaction between business executives and HR has been also shaping itself differently.
With the new generation of employees, transparency has increased, and data-driven insights are needed. The HR analytics had to keep up with this change to stay relevant and induce better decisions.
The companies need to identify the correlations between various variables and identify the interdependencies.
This can help them predict future trends and forecast the impact of one variable on other, ultimately helping them to improve fact-based decision making rather than driven by intuitions. With the help of data science and machine learning, the leadership can make forward-looking strategies and stay ahead of their competition.
3. HR-employee relationship
The employee expectations are also transforming, and organizations must know and abide by these expectations to keep up the engagement and productivity.
Each interaction or conversation with the employee can be used to derive better insights. The HR needs up their game to just be considered as a support group but to play a significant role in maintaining workforce productivity.
4. Insight quality
The technology has seen tremendous growth over the past couple of years leading to enhanced expectations of quality in terms of insights. These tools need to focus on data security and making analytics more user friendly.
The dependency on the IT staff had to be reduced to expect quick access to intelligent insights. Data integrity and data security had to be maintained regularly. The availability and acceptance of ad-hoc reporting and self-service analytics will help the general employees’ access and utilize these insights for improving their work and propagate it further.
The Workforce Analytics Process
With time and advancing technology, the expectations from workforce analytics have also risen. To optimize your workforce and the insights generated below are the few most important steps to take and keep in mind:
- Finding the right BI and Data engineering tool
The market of BI tools is wide, crowded, and spread throughout the world. One must finalize and buy the tool by exploring various options, mark them on their various offerings, and check their suitability for the organization.
One must always look at the range of features these tools are providing for example data mining, ETL, data visualization, ad-hoc reporting, predictive analytics, and more.
The technical team must take the demos and use these tools on a trial basis for some time to identify the pros and cons and see how comfortable are these to use not just technically but also from the perspective of the business user as well.
- Selecting the right KPIs and metrics
The company and Human Resources can produce a lot of data on daily basis, but it is essential to understand which data is important to achieve the business objectives.
Leaders can determine which KPIs to capture and monitor. Organizations can save up significant resources by limiting the number of KPIs and data to collect and analyze.
Otherwise, it may end up wasting time and effort. By finalizing the metrics, the right approach to data analysis, mining, and deriving insights can be found out and utilized for the best results.
- Make an action plan
Till now the organization has hold of the right BI tool, knows which data to capture, and aware of the goal they want to achieve. Based on this they can design an action plan.
They can apply all the advanced analytics techniques like machine learning and predictive analytics to enhance this action plan. This also helps in streamlining the resources and efforts and quantifies the amount of work to be done by each stakeholder.
- Be aware of the legalities
The organizations need to be aware of the legalities regarding the data collection and the legal compliance must be maintained in order to proceed further. Consult the legal team regarding the sourcing of data and various related steps.
As the data is collected, monitored, and analyzed, the resultant insights also need to be approved before the application or publication. With the increasing importance of data privacy and security, legal compliance becomes the most important part of the whole process.
- Simple Strategy
No matter how complex the project is, the complete process and way to reach the goal must be made simple. This should be kept in mind that data analytics should be easily applicable across the hierarchy.
The teams can create a basic structure of the data collection, data analysis, data transformation, and insights generation process. This will help in streamlining the flow of the process and reduce ant wastage in terms of time and resources. Companies work with the right tools, the right leadership, and right team to bring out quality insights.
- Unified HR analytics
The companies must realize that no department can work exclusively, whatever they do, the impact on the complete organization is important and can’t be ignored. Hence avoiding data silos is not just in the interest of the HR but also for the complete organization.
To have the maximum positive impact, the right set of KPIs and ROI goals must be established prior to the analysis and transparency must be maintained. The final strategy must include the right data and the right data story to increase its influence.
- Get Technical Support
To get precise insights and make the right future predictions the right technologies must be implemented correctly. These tools allow the monitor of the data in real-time and make predictions at the most granular level to help make the strategy more forward-looking.
As discussed, both the technology and human resources are transforming and adapting to the new way of operations. The trends will certainly keep on changing and to keep up the pace with it, more and more organizations need to include Business Intelligence in their digital transformation agenda.
With less than 5% of the organizations utilizing advanced HR analytics capabilities, there is still a long way to go as well as a tremendous opportunity for the organizations to excel in the HR game.
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