HR Analytics Buyer's Guide

HOW TO BECOME MORE DATA-DRIVEN  
 WITH PAYCOR ANALYTICS

woman reviewing analytic data

CFOs are losing faith in HR’s ability to solve problems with data.

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What's the problem?

HR teams still spend too much time on transactional HR functions that should be automated and HR professionals aren’t data scientists.

  1. HR teams (especially teams of one) still spend too much time on transactional HR functions that should be automated. If your HR processes are still manual, or worse, paper-based, your team simply doesn’t have time to do much else.
  2. The answers to your most pressing business problems—everything from troubleshooting your recruiting pipeline to predicting labor costs, overtime and turnover—are in your company’s HR, payroll, ATS and time systems. Yet, most HR professionals aren’t data scientists.


Herein lies a major disconnect.

The C-suite is looking to HR to separate the signal from the noise and turn people data into consumable, actionable insights that improve decision making around key business initiatives like attracting talent and reducing turnover.


The one thing high-performing HR teams do differently.

Paycor reviewed proprietary data from nearly 3,000 customers and found that many standard HR and recruiting metrics are tactical, in that they track project management, or, at most, basic dollar-in, dollar-out cost analysis. The most successful HR teams use data analytics to map people management metrics to business outcomes. That gets the C-suite to pay attention.


In This Guide

We will explore how the right technology can help you transform your existing HR data into meaningful analytics that answer your most critical business challenges and drive meaningful change across your workforce.


Making the case to invest in a human resources analytics solution.

Take the complexity out of workforce analysis and planning.

Paycor Analytics empowers HR leaders with high-impact, easy-to-consume, real-time data insights so you can you answer the right questions about your workforce. By transforming complex data into trends, predictions and powerful benchmarking, you can observe trends, pinpoint problems and take action.

Who Benefits

  • HR leaders frustrated with fragmented reporting from their HR system.
  • HR teams that want to make decisions based on data, not their gut.
  • People managers who want to optimize their teams and use insights to drive better performance.
employees in conference room
reviewing people metrics
women analyzing report

Key Benefits of Leveraging HR Metrics

ANSWER YOUR C-SUITE'S MOST PRESSING QUESTIONS

Who is at risk for resigning? Who should be considered for a new promotion? With visualization tools, we help you answer the right questions about your workforce by transforming complex data into clear, direct answers. By diving deeper into a certain topic, you can make analyzing data and workforce reporting easier than ever before.

DATA INTEGRITY

HR leaders shouldn’t have to play the role of data scientist. Paycor Analytics’ data visualization tools display the calculation and methodology behind the output in clear, easy to understand language, so you can speak with confidence, eliminate potential errors and improve leadership trust in you and your team.

ORGANIZATIONAL IMPACT

Paycor Analytics operationalizes your data to provide interesting moments that will directly impact your organization. From analyzing headcount to monitoring turnover, understand what factors are causing change, the rate employees are leaving and provide the financial impact of compensation, absenteeism and other factors.

COMPETITIVE ADVANTAGE

Paycor Analytics operationalizes your data to provide interesting moments that will directly impact your organization. From analyzing headcount to monitoring turnover, understand what factors are causing change, the rate employees are leaving and provide the financial impact of compensation, absenteeism and other factors.





LET'S TAKE A PEEK UNDER THE HOOD TO SEE IT IN ACTION.




Challenge: THE TURNOVER CRISIS In America

Employee Retention

CHALLENGE:

The turnover crisis in America.

The turnover crisis in America. The labor market is tight, turnover reached record numbers in 2018, millennials are job-hopping at an alarming rate and voluntary resignations are also at an all-time high. No matter how you slice it, people are leaving, it’s hurting the bottom line and HR must explain what’s causing it.

Paycor found that nearly half of SMBs are tracking turnover manually. The others are using software, but 80% say the data doesn’t give them actionable insights on turnover. Off-the-shelf, one-size-fits-all HCM systems just aren’t sophisticated enough to deliver actionable insight. When evaluating HCM software, go deeper than the demo and see if the turnover data the system gives you is anything more than a superficial understanding of turnover.

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To solve the turnover crisis, HR needs to answer these questions.

  • What is the rate at which people are leaving the organization?
  • What is my turnover rate by department?

woman leading meeting

How Paycor Analytics can help

Paycor Analytics provides hundreds of pre-built analytics, designed for HR and business users, populated for you with your data.

people analytics software screenshot
HR analytics software screenshot

Employees who don’t receive proper training quickly become disengaged. That’s why onboarding and continuous training is so important. Develop a formal onboarding process to ensure new hires understand their role and responsibilities, know all relevant policies and procedures and have everything they need to be successful from day one.

exit rate report
analysis of employee exit rate
employee metrics analysis screenshot

Voluntary turnover is a part of doing business, but our research found that according to employees, bad bosses are the #1 reasons people quit. This one factor accounts for 75% of voluntary turnover. Drilling down into resignation trends may uncover problem areas HR needs to address before they become widespread issues.

analyzing people data

Leave Management

Challenge:

Unplanned absences are costly.

Workers are absent for a variety of reasons, but when absences are unexpected, they carry hidden costs, disrupt others, contribute to overtime and significantly impact productivity. Supervisors spend more than 5 weeks out of the year adjusting schedules, finding coverage and training fill-ins.


Overtime is used to cover 47% of absences.

Coworkers are perceived to be
29.5% less productive when filling in for absent colleagues.


The negative effects of absenteeism

  1. Poor performance
  2. Increased work load for coworkers
  3. Lost productivity
  4. Manager frustration
  5. Negative customer feedback

To understand how absences are impacting your business, HR needs to know:

  • The financial impact of absences
  • Which departments have the highest absence rates

man frustrated at desk

How Paycor Analytics can help

By leveraging pre-built questions and interactive charts, you can see what’s driving absenteeism across your workforce, measure the financial impact, pinpoint problem areas and take action.

employee absenteeism data

When’s the last time you evaluated your PTO policy? Clearly communicating attendance policies in your employee handbook and using a Time & Attendance system to monitor issues can help reduce the amount of unscheduled absences.

workplace trends by department
analytics in workplace screenshot
data highlights workplace bottlenecks

Workforce Compensation

CHALLENGE:

Keeping up with the Jones’ in a tight labor market.
With unemployment reaching record lows, employers are raising wages and offering salary increases to find and keep talent and remain competitive in the market. Research from HR consultant Mercer of more than 16 million employees found that U.S. private-sector salaries for 2019 are expected to rise by 3.4 percent over 2018. And as the labor market continues to shrink, employers can’t afford to settle for status quo pay practices. But with increased scrutiny around pay equity, employers must ensure pay practices are consistent and fair.


When evaluating pay practices,
employers must consider:

  • How does the actual spend on total rewards compare to the budgeted amount?
  • Are we allocating enough dollars for compensation to stay competitive?
  • How do budgeted salary increases compare for males and females?

woman shaking hands in workplace
data influencing employee compensation
78% of companies factor employee turnover into compensation rates
73% of companies factor recruiting top employees into compensation rates
52% of companies reward performance with compensation rates
52% of companies support career advancement with compensation rates

How Paycor Analytics can help

The challenge with compensation is that there’s so many factors to consider. Are you allocating enough budget for compensation and total rewards? Are you increasing compensation and rewards to stay competitive? Is pay equity a concern? The right analytics solution can offer detailed comparisons and give HR the data they need to predict outcomes, optimize total spend and prevent compliance missteps. Armed with the insights, you can be more strategic and deliberate when discussing salary negotiations, evaluating pay practices and forecasting future budgets.

Analytics of spend vs budget
employee pay analytics
analytics and metrics by company department

Compensation is certainly a key contributor in retaining and attracting talent, but don’t forget to recognize your people for a job well done. The companies with the highest retention rates promote a culture of recognition, continuously using positive praise and even rewards to engage and motivate employees.

pay equity metrics
compensation ratio metrics

Understand Your Business at a Deeper Level

Paycor Analytics is the most powerful platform on the market—we’re the only ones bringing enterprise-level insights to medium and small business.