In keeping with Links’ belief of Decision-Driving HR, we encourage the use of technology to enhance your people decisions.
In recent years, there has been a rising appreciation for companies to understand and properly utilise data analytics. This trend has also made its way into the HR industry and with rising success. Now, with this growing technology, HR Managers can do more than just keep track of their HR function; they are now able to use this data to solve business problems and make better decisions.
Below we present you with 6 amazing things you can do with HR Analytics:
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1. Pay for Performance
Identify the best payment schemes to motivate your staff. With HR analytics, you can compare different pay elements and tie them with performance to see which produces the greatest results. Did you know that for senior roles, a higher commission rate is most effective in producing results while a higher base rate is preferred for more junior positions.
[Image source – HBR]
While capping commissions is a common practice adopted by businesses in order to control costs, this may in fact limit the performance of your staff. In a study examining the impact of capping salespeople’s pay, they found that eliminating the quota ceiling motivated the sales people, and actually resulted in a 9% increase in revenue.
2. Workforce Skillset Analysis
While many companies will use annual tests and diagnostics to analyse the skills of their employee, little take advantage of this to gain further insight. By incorporating such data into your HR analytics system, you can go the extra mile and determine the distribution of skills within the company. Taking this step allows you to see which qualities are more useful in each department, assisting you in making better people decisions. According to the Flux Report by Right Management, some skills were more important in achieving business growth.
[Most important skills to develop in employees to drive growth over the next five years – Flux Report by Right Management] >>
3. Track Turnover & Predict Future Movements
As an HR Manager, you come across different types of turnover, but not all are bad. With a professional HR analytics system, you can generate correlation studies to identify the underlying causes of turnover. For example, we’ve observed that, generally, with new management there is a greater percentage of turnover that follows. By identifying the trends within your company, you can better plan ahead and prepare for the foreseeable movements.
4. Fortify Your Workforce
You can now examine relationship strengths in the workplace! The frequency of email exchanges between members of the team can indicate stronger relationship ties. With this, you can better evaluate the strength across teams and regions, examining the effects of proximity in your workforce. This measure also allows you to determine the effectiveness of other things. For example, you may use it as a measure to evaluate how well your remote staff are integrated into the company and decide whether it is a good strategy for your business.
5. Help Build a Strong Company Culture
A good culture is key to any thriving business. A lot of the time this is reliant on the personality mix within the workforce. Make better hires to help you grow the company by analysing the most prevalent personalities that make it in the mix. This way, not only are you building a stronger foundation for the future, you are also cutting recruitment costs in the long term by making the right hires. Check out this article on Forbes about the ‘10 Personality Traits That Get In The Way Of Growing Your Business‘ for more insight on the importance of hiring right.
6. Hit Them With Facts
Show them you mean business. A long standing struggle HR Managers have been facing is the lack of real life evidence to demonstrate their efforts. While others can point to sales and revenues, it is harder for HR teams as they are dealing with human commodity. Now, with HR analytics, you can draw compelling evidence to show that your efforts are resulting in returns, helping you build a case to influence the company and drive better business decisions.
Interested in driving business decisions with Strategic HR? Try HR reporting and HR analytics from our HR outsourcing services. Enquire now!