HR Metrics & Analytics- as- a- Service

Analyzing compensation data allows you to spot any pay disparities and fix them to ensure you’re achieving internal and external pay equity. It can also help you determine which benefits are most valued by your employees. Then, you can adjust your compensation and benefits packages accordingly. Plus, you can decide if an additional bonus percentage leads to improved retention or performance or whether it makes no noticeable difference. That can ultimately save you money.

HR analytics also enables companies to remain ahead of the game by forecasting and preparing for future workforce demands. For example, predicting attrition rates helps organizations improve their workforce planning, particularly for critical roles within the business.

The richness and depth of HR analytics software mean it can use algorithms to identify skills and knowledge gaps within your current teams. Your team’s existing skills can be plotted on a grid against the skills you need. That can help you identify weak spots and propose a plan to bridge these. Gaps like these often harm employee engagement, morale, and turnover rates if left unresolved.You can analyze current skill sets, performance, education, and experience to identify which of your employees are most suited to upskill in a specific area. This means that HR doesn’t need to recruit new talent instantly. Instead, they can look internally to fill talent and skills gaps before looking elsewhere. Overall, this reduces recruitment costs by utilizing the potential of your current workforce, improves turnover rates, and can build a stronger culture.

Data can show you where your employees need upskilling or reskilling, if they’re utilizing training opportunities, and if the training is relevant for them. This helps you create relevant learning and development programs that help upskill and reskill your employees, boost performance, achieve organizational goals, and save time and money.For example, analytics can help you understand which of your employees prefer on-the-job learning and which prefer classroom learning. It can also show you which employees are more likely to seek additional learning and what character traits they possess.

Another of the benefits of HR analytics is that they can help you understand: which employees are leaving and why, your retention rate,  which departments have a higher-than-average turnover,  early attrition rates for new hires,  and which employees are most likely to leave in the future.This data enables organizations to prevent losses before they happen, reduce their turnover rate by understanding the root cause, and then design targeted strategies to improve retention.

HR analytics can help you analyze the candidate experience during the recruitment process and your employees’ experience at work day-to-day. For example, how strong their sense of belonging is, where they perform best, how they feel about every aspect of their job, and how they can continue to grow in their role and the organization. This information can help you improve the daily experience of your employees and create a better working environment and company culture.

Analytics can help an organization use its budget more effectively by demonstrating the potential value of each dollar spent. Software can unite HR and finance departments and offer one single source of truth, enabling both teams to have a strong understanding of metrics, including ROI numbers and salaries. For example, suppose data shows you that one of your L&D programs is helping employees perform better and boosting your bottom line. In that case, it makes sense to invest in this program and cut spending on any programs that aren’t delivering the same value. Similarly, if one particular source continually brings you top-performing candidates, it makes sense to allocate the majority of your recruitment budget on that channel rather than ones bringing in mediocre candidates.