There’s a growing trend in the HR world and it’s putting power in the hands of HR Leaders.
I’ll give you a hint. It’s data-driven.
The Four P’s
Chances are your fast-paced HR team is used to adapting to change. Evolving processes, priorities, policies and practices constantly impact how your HR team functions. Fortunately, there is one tool that helps manage the 4 P’s: technology.
Turning Information into Intelligence
According to a 2015 Economist Intelligence Unit survey, 82% of organizations are expected to start or increase their use of HR-specific analytic data to inform business decisions by the end of 2018. And that’s just the beginning.
Can HR Analytics Predict The Future?
Short answer, yes.
According to research conducted by the Economist Intelligence Unit, workforce analytics provides the key information about talent needed to inform current and future business strategy. Analyzing and reporting on recruitment efforts, employee retention and turnover offers businesses a key competitive advantage. CEOs are becoming keenly aware that this trend redefines their view of and relationship with human resources.
What Makes an HR Leader Stand Out?
By now, most HR departments are utilizing systems that automate many of their day-to-day tasks. Automation not only saves time, it puts an immense amount of data at our fingertips. HR leaders are learning how to leverage the right information and use human resources reporting to secure their seat at the C-Suite table.
How to Be an HR Hero
- Be sure you have the best technology in place so you have the tools you need to effectively manage, analyze and report
- Get a clear list of the company’s top goals and objectives
- Develop KPIs that align with company objectives
- Understand the true value—the power you hold as an HR leader—involves providing reports that influence strategy
Strategy Is Everything
Traditional human resource metrics focus on saving money and increasing efficiency. While these numbers are certainly important, they represent only part of the contribution HR can make to an organization. The more you can tie results back to business strategy, the more value you offer to decision makers. Think of it this way—when you expand performance outcomes from those based on the basic functions of the HR department (the same for every business) and develop metrics and KPIs designed to align with strategy (unique to your business) you position yourself as a strategic partner.
HR leaders have the ability to transform how a company uses its data from measuring outcomes to solve business problems, driving revenue and improving the customer experience. Deliver information that informs strategic decisions related to compliance, administration and employee engagement, and executives will begin to take notice.
Compliance is critical to business survival and success. HR reports about compensation, health coverage and labor distribution can help spot issues before they become a problem. The quicker you’re able to identify compliance issues, the better you’re able to address them.
You can’t inform strategy if you aren’t effectively managing all aspects of HR functions. Use a system with a centralized dashboard. Access information from one place and generate meaningful reports about workforce trends, payroll costs and more. Customizing these reports is necessary if you want to measure company-specific metrics and deliver data that impacts strategy. (Tip: It saves time when you can create the reports you need once and then schedule them to generate automatically.)
• Employee Engagement:
When you can access information about all employees from one centralized location, you have the greatest flexibility. Easy access to data helps keep you and your managers better engaged with employees. It also allows you to generate custom reports based on an employee’s specific needs.
Connect Data to Results
Case studies are popping up across all industries that link HR data to company performance. Using these connections companies are better able to predict and create desired outcomes. Consider these examples when thinking how you might use HR report data to deliver results:
• Employee Engagement can directly impact customer satisfaction. If your employees are engaged and provide great service to your customers, the better chances of retaining them and growing your business.
• Individual performance can be tied back to specific, dedicated training programs that empower employees to learn and grow in their careers. With more training and development opportunities, you can identify top performers and define career paths to allow them to progress within your organization.
• Manager development and training is key to increasing productivity and engagement across your workforce. Employees don’t leave a company, they leave their manager, so the more manager training and development opportunities you can provide, the great change you have to engage and retain your employees.
How Paycor Can Help
You want to uncover insights about how labor costs are affecting your bottom line, but you’re too busy tracking time attendance. There’s a way out.
Paycor’s Workforce Insights empowers organizations to gain deeper insights into important HR data like turnover, headcount, overtime and gender pay equity. For example, if you’re labor expenses are high, you can drill into specific locations or departments where employee overtime is not being monitored. With the data in hand, you can work with managers to reduce expenses and ultimately improve your bottom line. To see Workforce Insights in action, check out this short video. And if you’d like to talk about the benefits for your organization, contact our team to schedule a personalized demo.