HR leaders know that HR analytics are vital for the performance of companies, but it’s key to articulate the importance of HR analytics in a way that everyone understands.
If executives at your company are asking questions like “what is HR analytics and what is its importance,” then one of your top priorities has now become to bridge this knowledge gap.
Without buy-in from senior leaders, HR analytics initiatives will never reach their full potential and may never begin in the first place.
However, when your company’s leadership does understand the importance of HR analytics, one of your company’s most valuable resources can be used to its full potential and prove its value, time and time again.
Here are the top reasons why HR analytics matter for your organization.
Meeting Corporate Goals
To start, HR analytics are instrumental in meeting your company’s goals this quarter and this year.
HR analytics allow companies to more effectively align their workforces with their corporate strategies, which is a distinct advantage for overall company performance and the performance of specific business units driving the progress of various ongoing initiatives.
For example, companies who have best-in-class workforce engagement rates consistently report earnings-per-share values that are 4x greater than their disengaged competitors.
Another good example is meeting the target release of the next generation of a product. If HR analytics are leveraged to decrease turnover on the development team, then this product will be launched sooner than if the team is losing key members along the way.
Then, there are the negative examples.
From the performance stagnation resulting from “brain drain” to the PR nightmares resulting from a culture where sexual misconduct incidents aren’t tracked and don’t influence policy, we are all familiar with the negative results of failing to utilize HR analytics.
This is why HR analytics is important: completing your corporate objectives depends on the micro-level efforts of your employees, whose performance levels are directly affected by the design of their roles and work environment, which are optimized by HR analytics.
Talent and talent acquisition are front-of-mind for many leaders and may be the area that your executives most easily associate with HR analytics.
The talent of leaders and employees in key positions, as well as the general talent levels present throughout your company’s workforce, determine the performance levels of your company as well as the initiatives and strategies your company can conceive of and execute.
Here are some examples of the strategic insights and deep dives that can be made:
Projecting the effects of identified skill gaps to determine the timeline on which these skill gaps decrease profitability enough to justify the expense of extensive workforce training or a large volume of skilled hires.
A / B testing employer brand development strategies to optimize employer brand for talent acquisition and employee retention.
Identifying new hire traits that have a high correlation with long term success in your company to improve new hire selection.
Identifying hiring policies, practices and individuals who are having a negative effect on diversity levels at your company.
Identifying the company performance, brand strength, employer brand positioning and other factors influencing top employees to choose specific competitors.
Measuring the ROI of management initiatives.
Identifying the most common time sinks that your employees experience.
Optimizing the structure of meetings at all levels to increase effectiveness and employee engagement levels.
HR analytics allow your organization to improve according to statistical analysis, not well-intentioned guess work.
SwoopTalent helps companies to collect, store and use HR data more effectively and drive the effectiveness of their workforce analytics to the next level by providing talent data as a service.
To learn more about how SwoopTalent connects you with the benefits provided through leveraging HR analytics, you can request a demo here.
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