Potential Benefits of Incorporating HR Analytics

Potential Benefits of Incorporating HR Analytics

HR analytics uses the data for effective decision making. It will help to attract and retain the employees. Companies use HR analysis to gain competitive advantage. Implementation and usage of HR analytics can give following benefits to your company:

1. Proactive in revolving the issues

Through Hr analytics, you can get forecasted data about company’s future workforce demand. By gaining continuous data, evaluation, and analysis of results, your company will be proactive rather than reactive in their approach. It assists in anticipating and preventing future issues which will reduce company’s cost.

It is natural that human eye can miss the pattern of the workforce. Machine learning will be utilized to detect patterns and issues that is overlooked by a human eye. HR analytics examines trends in workforce performance, management performance, excessive commuting times, and other factors that cannot be observed consistently. Issues are identified through reports produced by machine. It will help to manage workforce efficiently and effectively.If issues will detected at early stage, it will reduce cost for the company and increase the profit.

2. Assist in Employee retention:

Hiring a right person is important. However, retention of employee is even difficult. It can be due to any reason like work life balance problem, lack of skill, problems with the management, low salary or overwork. It is important to know why employees leave job earlier than expected period. Employee is an asset for the company. It only makes sense to invest in them if they will be beneficial for the company.

HR analytics assist in accessing employee retention rates. Your company can know why employee leaves the job. Through this feedback, you can improve the workplace environment. You will be able to identify the employees that will leave the job in the future. If the employee is value addition to the company, then you can use the opportunity to turn their decision around. You can fix the problem so company can achieve its targets and goals.

Employee experience should be taken into consideration from their recruitment process to the last working day of the job. HR analytics analyse employee’s commitment and sense of belonging to the organization. Your company will know who are loyal and committed to your company. Committed employee adds value to the organization. They help company grow financially. Employees can know where they perform well and how they can grow their morale. HR analytics adds value to the employees’ experience by creating better working environment and culture.

3. Makes your company a safe workplace

The data collected from incident reports is another key benefit of HR analytics software. Reports shows the trend of pervious misconduct in the organization, like sexual harassment and discrimination. Your company may use the data to develop tactical plans to predict and address these problems. It will help to create safer workplace for the employees.

Above we have clearly mentioned the benefits of HR analytics. Many big companies like Deloitte, HCL etc have started using HR analytics which has been a gamechanger for them. Companies are now able to understand their employees better. Company invest smartly in people who will work hard and optimize company performance. Start using HR analytics today to gain all the benefits and grow your profits and company’s reputation.

Recommendation from the industry Experts:

Once the Human resource students graduate from university, they stop reading and researching about latest trends. Continuous knowledge on the recent HR developments is very important. Then firstly, try to implement the knowledge on small scale. If you are successful, then try on bigger scale.

HR need to shift to the software rather than physically calculating everything for example turnover rate is calculated through google sheet that is inefficient. Manual calculation on google sheets can result in human error. Excel and google sheets should be HR specific software, which is simpler, efficient, less chances of mistakes.

Employees have usually negative perspective about HR department because they are hiring and firing. Focus on communication flow between these two through employee engagement activities.

Introduce new skills and opportunities in the organisation. It will keep employee motivated and happy so he will retain for longer time. Investment in employee development through mentorship, training and career counselling will increase the productivity and sales.

HR conventional strategies need to be improved. For example, if employee gets a better offer try to retain him through increment because new employee will require training. Cost of training will be high so try to retain current employee.