How to use human capital analytics to get instant insight into your most important business challenges.
Think of your most pressing business problems:
- How much is unplanned overtime costing us?
- Are we at risk for compliance violations?
- How is employee turnover impacting productivity?
- Which departments have the biggest turnover?
The answers to these (and many other) important questions are in your HR, payroll and time data systems. But even if you could get to the relevant data, how would you sort through it and distinguish the signal from the noise?
What Is Human Capital Analytics?
Human capital analytics provides a modern way for organizations (and many of your competitors!) to get deeper insights into their people data and bring valuable information to key stakeholders in areas like workforce planning and financial forecasts. Just last year, Deloitte Research saw a 120% growth in companies correlating business performance to HR metrics. No wonder then that 70% of organizations with at least 75 employees described data analytics as “important” to their future growth.
HR Data Analytics is a Competitive Advantage
Think about it: does your business offer a product or service that is truly unmatched and utterly unique in the market? Few will honestly answer yes. In fact, many organizations provide similar services and run on the same technology stack. Enter human capital analytics: if you can use HR analytics to and optimize your workforce planning and make accurate, data-driven business decisions faster and more efficiently than your competition, that’s a huge advantage and, for many companies, one of the last remaining points of differentiation.
3 Ways You Can Use Workforce Data Right Now
1. Instantly Identify Insights
We all have the same number of hours in a day… whomever gets the most out of those hours, wins.
A recent McKinsey report found that an average employee spends 19% of their time searching for information (that equals 300+ hours per year). How much time do you spend searching for the correct information to include in a report? Once you find the data, how long does it take to make sense of it and then present it in a format that colleagues can understand and react to?
A smart, intuitive and easy-to-use analytics tool can practically erase the “search & report” problem and give you and your employees that time back.
2. Tailor the Report to Your Needs
Filter and configure your insights to fit the unique needs of your business. Want to slice and dice your data to work for your needs? Have a boss who needs your data to look a certain way? When it comes to data, one size never fits all. The right data analytics tool enables you to create reports tailored to your needs and filter results to drill down to specific problem areas of opportunities that will ultimately impact profitability and long-term planning. Your chart, your report, your action plan, built the way you want to see it.
3. Devise an Actionable Plan
As an HR professional, you need to be able to bring value to executives in your organization. Data analytics doesn’t just organize data; it helps organizations identify issues and solve their people problems through strategic forecasting and people analytics.
Important Note: Beware of the data analytics tool that goes heavy into data, but falls short on the “making it actionable” part. In other words, many tools provide lots of data, but don’t make it interactive, so what you’re left with is a ton of numbers, but no way forward. If you can’t interact, customize and dig into the data easily, data analytics won’t save time and, more importantly, it won’t lead to action.
What to Do Next
In a nutshell, human capital analytics connects the value of people, your greatest expense, to the strategic goals of your organization. And it’s not a fad. This is one boat you don’t want to miss. To see how Paycor can help you spend less time searching and more time solving your biggest business problems, watch a 45-second demo of our new solution, Workforce Insights.
Ready to take the next step?
View our Paycor Analytics Buyer’s Guide to learn how your organization can leverage data on absenteeism, PTO days, turnover by department and more.
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Sources: Sierra-Cedar, Deloitte, Forbes, Harvard Business Review, McKinsey, Paycor Survey