Developing high performing workforce is a primary challenge that is fronting by most of the companies today. At the same time organizations are also struggling to know about their workforce to optimize the workforce lever. Organizations have to often contend with high attrition rates, a shrinking talent pool and the pressure to sustain employee engagement. Against such a backdrop, many organizations find it challenging to focus on making human resource management processes more cost-efficient.
The opportunities offered by analytics are pertinent to core HR processes such as talent acquisition, attrition risk management and capacity planning. With visual analytics HR executives will be able to assess the results of their decisions and devise a long-term strategy.
Significant challenges faced by HR
Every business function need to maximize operational efficiency and focus on strategic initiatives to stay profitable. Across all the developed and emerging markets HR leaders struggle to support the business with the skilled workforce needed, due to budget and time constraints. Predicting the attrition rate is one of the biggest challenges and it even worse when employees quit soon after participating an expensive training program sponsored by the organization. Is there a way to predict such risks and reduce the costs associated with them?
Other such questions to be addressed by HR leaders include:
Talent acquisition and resource management
- What is out talent composition?
- Do we have the right sized org? Are we driving Diversity?
- Are we retaining and engaging our top talent? In which country?
- How is our Talent Composition of Millennials?
Workforce administration & Retention
- How can we manage headcount optimally?
- How can we reduce employee fraud risk to protect our brand image?
- Are we retaining our leaders and diversity talent?
Performance and learning
- How can we gain greater value from our training programs?
- How do we select the right employees for training?
Create value with Analytics
- Better ROI on workforce investment
- Forecast workforce requirement
- Retain high- performance talent
- Identify the factors that lead to greater employee satisfaction and productivity.
- Discover crucial reasons for employee attrition and identify high value employees at risk of leaving
- Establish career development initiatives
Importance of HR analytics
The core functions of HR are ultimately to optimize the workforce through dexterous processes to optimize, acquire, develop, and pay the workforce, while complying with statutory requirements. Each of these processes has a set of business objectives; sometimes there are issues in meeting those objectives. Organizations can use analytics to dig into the issues surrounding each process, using an analytical tool. HR analytics help:
- Improve profitability through more effective workforce cost control
- Balance the lowest effective headcount while ensuring satisfactory service delivery
- View top and bottom performing employees to retain key talent pools
- Address employee retention trouble spots
- Executives and managers to be able to understand the causal effect of workforce investment
- Call Centre managers to optimize call costs and abandonment rates with additional training to lower service delivery costs
- Move away from intuition based decisions
In a recent tableau implementation for a leading IT services company understanding the trends and exploring potential tradeoffs was easy. Connecting to any data source was difficult with their current system. They needed HR analytics for front-line leaders to maximize the impact of business outcome. With Tableau we have developed several KPIs and linked to their HR practices as per their requirements to guide their critical business decisions.
From attracting top talent, to accurately forecasting future staffing needs or improving employee satisfaction, HR analytics tools empower organizations to align HR metrics with strategic business goals. Gender wise metrics were assessed the female headcount and attrition trends.