Analysis data has become one of the most important assets to any company, including the HR department. Analysis doesn't just reveal things like employee performance or customer conversions, it also reveals how your company compares to the world at large. This matters immensely in terms of competition and smart decisions, especially in terms of hiring.
Your company needs to have access not just to your internal employee data, but also to the data of the labor market as a whole. Comparing these two data sets is incredibly important for keeping your positions appealing, your hiring practice effective, and your decisions as smart as possible for each new hire in the future.
Today, we're diving into the five key benefits of comparing your company employee data to the labor market data as a whole.
Reveal the Relative Skill and Value of Your Internal Team
One of the great results of having an in-house team is the opportunity to build on their skills and experience in line with the job. But this can also cause businesses to lose track of what a new hire of the same position might be able to do. Getting in touch with labor market data can help you to identify just how valuable your internal team really is. If they are rocking it, building a diverse skillset and building on their achievements, your new hires will have a lot of catching up to do. If new technology you don't' use has been introduced in that time, new hires might have some things to teach the team.
Discover How Competitive Your Salary Offers Are
Few things are more important to hiring than a competitive opening salary offer. Even all the wellness and employee perks that are so popular these days pale in comparison to the ability to offer a salary that compares with the current market standard of each role you are hiring for. Knowing the labor market data can give you insights on how much is appropriate to offer, when to negotiate, and whether additional employee services are worth offering to stay competitive.
Decide Whether to Seek Hires Internally or Externally
You may also conclude, after looking at the labor market data, that your company would be better off filling key roles with employees you have trained internally. Whether this decision is for financial reasons or simply that your teams have greater experience in the areas you need may factor in. You might be considering the competitive cost to hire a new person versus the benefit of offering upward mobility in the company
Identify Disruptive Trends to be Adopted or Avoided
Analyzing labor market data compared to your employee data may also help you identify important trends going on in the hiring industry right now. There are many disruptive technologies and shifts in methodology going on and each one is worth careful consideration by HR. Your company may already have started to mirror certain disruptive trends like computer-assisted resume assessment or demographic shifts. But the most important thing here is to be aware of the trends and consciously decide to jump to the cutting-edge or hold back to see how it turns out.
Determine If Your Hiring Methods and Technology are With the Times
Finally, comparing your data to the wider labor market data can help you identify if your hiring process and technology has recently become outdated. Often, companies roll with the same hiring methods for decades because it works. But the hiring climate has changed significantly in the past several years and many companies have yet to catch up. With detailed data analysis and comparison, you can learn exactly what your competitors are most likely doing and how to upgrade your technology to take the industry edge.
Ready to dive into the data for your company employees and the labor market as a whole to discover these valuable insights? Contact us today!