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When you analyze labor patterns and employee data, you identify ways to improve key metrics based on that data. Companies, small businesses, organizations, and public-sector agencies can benefit from workforce analytics by enhancing internal processes, boosting compliance efforts, improving employee productivity, and identifying opportunities.
But you need the right software tool. Tracking workforce data and performance to identify areas that are ripe for improvement is something a total workforce management system was created for — especially the analytics part. In fact, making informed decisions based on employee-personnel data should be a top priority. Whatever your objective, this type of workforce platform will put an end to your quest for a comprehensive data-driven human resources strategy.
Let’s take a step back. Recruiting and training employees has become much more challenging in the post-pandemic era. It’s essential your organization or company is able to measure the return on investment of hiring new team members, reducing employee turnover, and forecasting employee performance well in advance. Aside from their operational role, human resources functions — or entire HR departments — are strategic partners that help businesses and organizations succeed. That means people strategies, or workforce management analytics, are well suited to this task.
Maybe your company’s human resource policies and strategies could be improved using data-driven insights; but maybe you also lack a detailed understanding of your people data. With a workforce solutions management software that incorporates analytics, you’ll learn how to view human resources-related data differently so you can find operational efficiencies and boost employee satisfaction. You’ll have the knowledge and skills you need at your fingertips to make real change, improving the operational and employee experience — and decisions too.
The Benefits of Data Analytics for HR and Workforce Managers
Human resources professionals are in for a shock if they think data analytics and human resources management are worlds apart. A recent Deloitte survey found that 70 percent of executives believe human resources analytics have become increasingly important to businesses. In fact, the purpose of data analytics is to identify problems, predict trends, and optimize processes. Identifying talent gaps and assessing performance are also possible uses as well.
In a recent and thorough Deloitte case study based on one company, researchers found that (based on analytical human resource insights generated): “The organization shifted its talent strategy to attract more outside-of-industry talent, re-focus job postings around the future-focused skills necessary to open their newest data center, and built a strategic talent framework to help define when the organization should engage contingent labor versus employees.” What’s more: this experiment could easily have been replicated at a small business, public-sector agency, or a completely different company.
However, it’s crucial for workforce leaders to understand how different types of data sources work. For instance, by analyzing employee-engagement data, you can identify areas within your organization that contribute to disengagement levels. In addition to discovering improvement areas, data can also be used to reveal what needs to be changed from a holistic level. You can pinpoint problems with your hiring, retention, and management processes — or staff/employee issues — if you have data that paints a true picture of the inflow and outflow of workers, their engagement, productivity, and so much more.
Data Pain Points: What are They, and What Can Be Done?
Most small businesses and companies are surprised to discover they do not use much of their human resources data effectively. Many surveys over the years have uncovered that a low number of respondents actually report having made positive changes because of workforce management analytics. Data pain points can contribute to this.
The concept of human resources analytics is often perceived by professionals as too complicated. When data is siloed and workforce managers cannot easily navigate it, this can be especially problematic. A variety of formats may also make it difficult to find and understand data. Inaction can be caused in part by confusion and difficulty in understanding many workforce metrics. Metrics that measure employee engagement or retention are especially susceptible to this.
Sometimes even when you have the right data sources, you won’t get very far. In order to interpret and make sense of the data, you need the necessary skills and digital platform, which all come with a smart workforce management software solution. The situation is common for many businesses. Their intentions are good, but they don’t know where to find the appropriate analytics or how to apply them properly. However, when workforce management pros use human resource analytics effectively, business performance and change management strategy can be improved significantly.
Another pain point can sometimes be peoples’ perceptions at work. In a joint 2021 State of HR Analytics report by Oracle and the HR Research Institute, over half of respondents agree or strongly agree that the head of human resources should be actively involved in directing people analytics work.
“When people analytics was new, many HR leaders had no idea what their department should deliver and left it to an analytics professional to figure out what to do. Now that analytics has been on their radar for some time, most heads of HR have now developed enough interest and expertise to actively direct HR analytics,” the report states. “This involvement will be important in making sure analytics work is focused on relevant topics. It is also somewhat encouraging that nearly half of respondents (46 percent) agree or strongly agree that business managers are highly supportive of people analytics work. While in an ideal world the number would be higher, HR doesn’t need everyone to be supportive. The HR analytics team can focus on collaborating with business managers who are enthusiastic, and the successes there will eventually bring other managers on board.”
Take Your People Strategies to the Next Level
You might be wondering how to move forward after taking this 10-minute crash course above. The first step toward workforce management analytics should be contacting VCS Software. Their solutions:
- Provide a wide range of options for a wide range of HR data. All human resources analytics activities depend on people-information, so knowing the HR analytics data source is crucial. Not only are descriptive, prescriptive, and predictive analyses covered and managed, but also the various types of employee data and their contribution to informed decision-making.
- Empower detailed content for presentation and informed action. Workforce analytics will be taught or guided through performance management, engagement, career planning, leadership, staffing, training and development, and so many other platform tools.
- Make data work for you. You’ll not only gain a wide understanding of analytics and why it matters to your organization, you’ll be able to apply those analytics in real-time situations and scenarios.
With a total workforce management solution, you’ll learn how to analyze data and make better hiring, training, compensation, and benefits decisions. You can improve your data interpretation skills, solve complex problems in your human resources role, and develop strategies to help your organization succeed. Reach out to VCS Software to gain a better understanding of how public employers, agencies, industries and small businesses are using the right smart workforce management solutions.