Spread the love

One of the most challenging aspects of any business is to take critical decisions that optimize operational efficiencies. However, it is easier said than done as the modern business environment is a very complex web of various facets and each has to be streamlined to maximize the overall organizational performance.

What is making the whole process easy now is the development and widely used HR analytics tools? What was previously a simple data analysis tool for improving bottom lines is today a tool for a host of activities such as hiring, tracking performances, decision making and hiring. Businesses that use HR analytics now rarely face a business growth plateau.

What is HR analytics?

HR analytics is a tool that processes and uses all data related to human capital. It helps executives and the top management get a broad picture of what is happening in the organization. The data collected is related to the people working in a company and includes manpower planning, demographics, and profiling as well as analysis of data related to payroll, leave credits, employee benefits, performance, and promotions. These are very crucial for management to take considered decisions on essential issues like diversification, M&A, and workforce planning.

What are the benefits of HR Analytics at work?

HR analytics is run on software through a centralized server in the organization so that there is one common source of all information related to employees. It is a single point resource for records, data, and statistics and gives a clear picture of the staff working in a firm at all levels.

An example will help explain things better. Consider an agency for labor hire in Melbourne. It will have a data bank of job seekers for various fields with different qualifications and experience. Now when a company has vacancies and informs them of the details, the agency can instantly know through HR data analytics which candidates are suitable for the jobs and can inform them accordingly. On the part of the recruiting agency, they get the best talents for their vacancies. Incidentally, one of the leaders in this field of labor hire based in Melbourne is First Personnel.

How can HR analytics help in business decision making

There are many ways that HR analytics can positively influence business decision making. 

  • Reducing time spent on data compilation –One of the factors that affect efficiency levels of an organization is that a great deal of time is spent on data processing and compiling reports. However, with an HR analytics programme in place, data from different departments can be brought together as one unified source of standard data. All reports whether monthly, weekly or daily, as well as all dashboards, is generated instantly. More time can then be given to brainstorming and analysis of the generated reports to ensure accurate and considered decision making.   

  • Micro-level view of human resources –HR analytics helps in getting a macro-level view of the overall human resources position of a company. Top level management can review the latest data on salary and other establishment expenses and get an immediate view of the company’s health and profitability. Using this powerful software, SGAE (Salary and General and Administrative) figures can be closely monitored. Reports generated also provide rich insights into the nature of the workforce including diversity and equality profiles. 

  • Minimizes human error –Reports that are generated through HR analytics software have little room for mistakes as they are all automated. Hence, the possibility of errors generally attributed to manually encoded reports is eliminated. 

With accurate and quick report generation, HR analytics helps to optimise the decision-making process in any organisation.   

The following two tabs change content below.

Riley

Riley is a well-known HR analyst having long years of rich experience in this field. He has propagated the use of HR analytics for the effective functioning of any organisation. Presently, he is working with First Personnel, consultancy firm with specific focus on Human Resources development. Riley also assists companies in structuring various training programmes for their workforce.

Spread the love