For those companies that consider their workforce to be their most valuable and expensive asset, HR analytics is the need of the hour. Studies like the Aberdeen Group survey have shown that organizations that use HR or workforce analytics to provide business leaders visibility into talent data, have the most engaged and effective workforces, who are productive even in harsh conditions.
Very often business leaders do not give human resources their due. The HR division most often is not actively invited to participate in strategy planning and formulation, as the top brass find it difficult to establish business linkages to HR initiatives. This is where HR analytics comes into play, as it is able to look at workforce related data and use it to arrive at business driving processes and initiatives. Whether it is to analyze employee turnover, or optimize the talent supply chain, analytics provides the big picture that decision makers need, to improve and align their talent, to meet the fluctuating needs of their business. Instead of just compiling data into monthly reports that might well be just skimmed over, companies must find a way to use their data to positively impact their business.
The basis of the success of HR analytics is to first and foremost align HR data with business data. The Aberdeen study states that, 59% of top performing companies’ aggregate employee data with business data compared to 28% of the lowest performing companies. Furthermore, 54% of top performing companies combine talent management data with business data compared to 30% of companies in the lowest performing category.
Having convinced you that HR analytics is something we need, lets take a quick peek at just what HR leaders in top performing companies, that use workforce analytics do, to make the organization more viable:
• They are accountable for some part of the organization’s financial growth.
• They collaborate with business leaders in all divisions helping them achieve business targets.
• They interpret data from a HR perspective- showing what’s working best and what’s not, keeping the organizations growth in mind.
• They create a HR strategy, that is in line with the overall strategy of the organization and ensure that it impacts the core goals of the organization at every level.
• They realize that there is an ROI for almost everything they do- And they calculate it all!
There is a really useful webcast on Vimeo.com titled, ‘The Top 5 “Must Do’s” For Successful Workforce Analytics’ that outlines a step by step guide for HR leaders aspiring to build a successful workforce analytics program. It has some great tips on how to ensure that the initiative delivers tangible business results, such as improving productivity, profitability and performance. It also provides some very useful best practices, grounded in real everyday experiences, that will provide rich take-a-ways, to use in your organizations workforce analytics program.
So, if you don’t have a HR analytics initiative in your organization yet, take a deep breath, take that first step and watch as it positively impacts your organization. More importantly your workforce will feel more in tune with the rest of the organization and this in itself will go a long way in helping you most valued asset- your people feel contented and happy.