HR Analytics: The Key to Maximizing Your Workforce
hr-analytic-data

HR Analytics: The Key to Maximizing Your Workforce

Your human resources department is sitting on a massive amount of data that can help you make more strategic HR decisions. Bersin by Deloitte Research indicates that in 2016, companies experienced a 120% increase in linking their people data to organizational performance.

Make Better HR Decisions with Data

According to an International Public Management Association for Human Resources (IPMA-HR) survey, nearly 70% of respondents said they collect HR metrics. But, simply gathering all of this data is no longer good enough; to meet corporate goals, you have to actually do something with it. You can no longer wing it and operate on a gut feeling or instinct; your C-suite expects you to come to the table with hard numbers and actionable information.

Workforce analytics help you drive more methodical decision-making throughout the organization. They can help you more easily understand and manage concerns such as:

Overtime Data

Controlling overtime costs can be tough, but it’s a challenge most businesses face. Employee wages make up 70% of a company’s compensation costs, according to the Bureau of Labor Statistics. When you are presented with hard data you can easily analyze how much of your compensation can be attributed to poorly planned overtime – and quickly pinpoint the departments or managers that are the cause. You can then work with your senior leadership and managers to limit overtime when feasible, potentially saving the company a substantial amount of money.

Turnover Data

If you feel like your company has a big “EXIT” sign on it, you can use HR data to find out where the issues are and take steps to Identify which areas of the business have the highest turnover rates – and then develop a strategy to stop the bleeding. Employee churn can have devastating impacts on a business and its bottom line. Some of the consequences of a high attrition rate include:

  • Increased cost-per-hire
  • Reduced employee productivity
  • Decreased employee morale
  • Increased overtime costs
  • Poor brand reputation in the marketplace

hr-analytics-data

Recruiting and Hiring Data

HR data is probably most important in the hiring process to help ensure you select the right employee for the job. Having a grasp on certain metrics can also help streamline the recruiting process and make it more efficient and effective. But, you need to dive deeper than just maintaining a spreadsheet to show how many resumes you’ve read through or how many telephone or face-to-face interviews the recruiting and hiring teams have conducted.

  • Offer Acceptance Rate Following the rate of job acceptances over time can help you determine the overall effectiveness of your company’s talent acquisition strategy. If your recruiting conversion rate is low or on a downward trend, you can take a hard look at salaries and benefits to make sure they track with those of your competition and your market.

  • Candidate Sourcing This important metric helps you make decisions about your recruiting strategy and will support other data points. The measurement will help you determine where you should focus your recruitment budget. For example, you can analyze where your recruiters have the most success sourcing candidates: Is it job fairs, on-campus recruiting, job boards, something else? You can also use it to determine how much time recruiters are spending on hiring resources, such as events, and to help determine recruiter performance.

  • Average Time to Fill Positions This metric is all about tracking how quickly (or slowly) applicants move through the hiring process once they’ve been recruited or have applied to a position. Time-to-fill calculates the number of days an available position remains open. It can also provide information about the amount of time it takes a recruiter to contact a candidate after one is identified, as well as how long it takes to schedule interviews.

  • Current Candidate Pipeline Understanding where a candidate is in the hiring process, as well as how many applicants are in each stage, is another good metric to have. This metric can provide insight into: The number of candidates you currently have in the interview phase; the number of outstanding offers; candidates who have accepted offers.

  • Reasons for Non-Selection Maintaining a record of reasons for a candidate not being hired is important as well. Some reasons to include: Failed to meet qualifications (e.g., education or experience, poor references, failed drug test or background screen); candidate didn’t interview well; another candidate was a better fit; candidate declined the offer. While having this information isn’t a requirement, keeping track of it can help with EEOC compliance in the event of a discrimination lawsuit.

Employee Performance

Using predictive analytics can help you pinpoint characteristics and patterns that make up good or bad performance on an individual or team basis. Performance analytics give real-time information to help you make timely decisions. You can quickly recognize performance red flags and predict which employees are in the top flight risk group. You can then implement tailor-made retention programs to re-engage at-risk employees. When HR can gauge employee performance based on analytics, succession planning also becomes easier.

Using Data to Help Lower Insurance Costs

Analytics tools can help you examine insurance claims data and workplace demographics to identify coverage gaps and improve your understanding of what your employees want the most from your plans. This data can help you develop a comprehensive benefits strategy to address the needs of everyone in the organization.

Get the Analytics Advantage

If your HR software doesn’t offer robust reporting and analytics, your company could be at a distinct disadvantage when it comes to hiring and retaining top talent.

When you have data that “lives” in the same database, and not in unrelated systems that might have differing or duplicate information, you can easily and successfully manage it and build accurate and actionable analytics. Having the ability to access all of the pertinent data you need to make well-informed, strategic HR decisions will help you save time, money, and effort, having a positive impact on the company’s bottom line.

In this time of data-driven decision-making, a tool that combines HR, time and payroll data to explore workforce issues and deliver critical business improvements isn’t just a nice-to-have, it’s a must. If you’re interested in seeing the product in action, click here to schedule a personalized demonstration with one of our expert solutions consultants.

Ready to take the next step?

Check out our Paycor Analytics Buyer's Guide for a visually engaging deep dive into how your organization can become more data driven.

View Paycor Analytics Buyer's Guide

More to Discover

Executive Summary: 2020 October HR & Compliance Virtual Summit

Executive Summary: 2020 October HR & Compliance Virtual Summit

“This was the best Virtual Summit I’ve even been to!”“Such a great presentation! Thank you for this awesome experience.”“The webinar sessions were so good that I wish there were more!” This is just a sample of feedback from attendees at Paycor’s October HR & Compliance Virtual Summit!On October 13-15, thousands of HR & business leaders attended the Summit to learn from industry experts. They walked away with actionable tips and timely advice around recruiting trends, compliance, maintaining a safe and healthy work environment and so much more!Did you miss any of the live sessions? Don’t worry, we’ve got you covered. You can watch them on our On-Demand Webinars page.In the meantime, check out our executive summary for a quick...

Webinar: My Supervisors Need Training - Where Do I Start? - 11/25 @11AM ET

Webinar: My Supervisors Need Training - Where Do I Start? - 11/25 @11AM ET

This session is approved for (1) HRCI & (1) SHRM CreditWhen an individual is promoted to a supervisory role, appropriate training is often limited by the time, resources and budget on hand. It’s not unusual to find managers who have been in the role for ten, fifteen or even twenty years with no formal supervisory training. Training is often “on-the-job” – otherwise known as trial by fire. In order to have strong, effective supervisors, it is worth the investment of time and resources to provide proper training.In this session, you will learn: - Essential elements of an effective supervisor training program - How to assist supervisors in implementing what they have learned (and how to follow up with them) - How to provide proper and...

Webinar: The State of American Business: Looking Forward to 2021 - 11/24 @2pm ET

Webinar: The State of American Business: Looking Forward to 2021 - 11/24 @2pm ET

Paycor recently surveyed more than 2,000 HR & finance leaders on the state of American business at the beginning of 2021. Join us for this special webinar as we break down the responses!You learn about: The HR/Finance Relationship - only 12% of finance leaders believe HR significantly impacts the bottom line Remote Work - 30% of employees are more productive at home than in the office Benefits - 86% of business leaders are concerned about the mental health and wellbeing of employees Compliance - Only 9% of business leaders ay their HR technology is "very effective" at mitigating compliance risk Register to learn more.Speaker: Matt Bergantino As Director of Content, Matt leads a team of researchers, journalists and subject matter...

Webinar: Manufacturing & Construction Industry Spotlight: Ask an HR Expert - 11/19 @11AM ET

Webinar: Manufacturing & Construction Industry Spotlight: Ask an HR Expert - 11/19 @11AM ET

Let your voice be heard as we’re providing an hour with leading Manufacturing and Construction expert Jon Thurmond to answer your most pressing HR questions as they relate to the unique challenges in manufacturing.If we use your question on our webinar, we will send you a $25 Uber Eats gift card as a thank you.This is a great opportunity for you to get complimentary HR expertise for your organization.Simply register for our webinar and email your question to webinars@paycor.comSpeaker: Jon Thurmond Jon Thurmond serves as the Mid-Atlantic Regional Human Resources Manager for Team Fishel, a utility engineering and construction firm. His experience includes working across multiple industries in roles encompassing Employee/Labor Relations,...