How important is Data-driven HR?

We have discussed quite a lot about the importance of HR software to an organization. Let’s look at one component of ideal HR software and its advantage to the HR organization, to leadership levels of the organization.

Business strategy needs lots and lots of business analytics. HR Strategy is also a vital component of the business strategy which requires a gamut of HR insights/ workforce analytics. Workforce analytics, commonly known as HR Analytics provide performance, demographic, talent analytics of employees. These analytics are indeed helpful in drawing a workable HR strategy.

Data derived with HR Analytics are helpful for both employers and employees. Key HR indicators will show a snapshot of revenues, headcounts, employee turnover, average performance etc. these will be helpful to understand the overall status of the organization in an HR perspective.

Further, HR analytics will showcase the composition of the workforce (demographic details of employees). This will provide indications to leadership level on the male/female composition of the workforce, percentage of employees cascaded to different employee categories etc.

Recruitment focused analytics will showcase which departments have attracted people in a given period of time. It will also provide a comparison between how many candidates have been interviewed and how many have been recruited. Such analytics will help identify the efficiency of the recruitment process, thus to make required improvements.

HR analytics also may include insights on “learning management”. Analytics such as; number of training needs identified, number of training programs organized during a specified period, estimated cost per training program vs. utilized training budget will be helpful to understand whether the training programs have been organized to get the best out of the allocated resources.

HR analytics could encompass Absenteeism analytics and Overtime analytics which indicates absenteeism and overtime hours by department. Such analytics provides the line of sight to leadership roles of an organization to measure the attendance status of each department within the organization.

Finally, Qualification related analytics will provide the management with insights on the qualifications acquired by employees in different departments which may come handy to understand possible successors for prospective positions etc.

Likewise, comprehensive HR analytics are of paramount importance for HR leaders and other C-Level executives to understand the REALISTIC state/ performance of the organization, thus being able to draw a pragmatic HR strategy and business strategy.

HR and Business strategies drawn with real-time, reliable HR insights will have realistic and achievable goals. Strategies drawn subsequent to understanding the real picture of the organization helps the management to underpin the strategy with viable action plans.

Let’s discover how Microimage HR Software provides enterprises with these HR insights! Visit mihcm.com

Something
You might find interesting
Is Talent Acquisition the cornerstone of Talent Management?
Is Talent Acquisition the cornerstone of Talent Management?
How does your organization hire best talent to the organization? How do you ensure that talent you have hired is the best fit for...
3 top HR priorities sorted with Digital HR
3 top HR priorities sorted with Digital HR
Among the biggest concerns of HR professionals and business leaders is to hire the best talent, retain them and decide how to convert this...
How do we raise HR productivity?
How do we raise HR productivity?
Productivity is a definite term amid the key business jargon lately! Productivity achieved at the right pace promises higher profitability and other non-financial, tangible/...
Helping Organizations transform through HR
Helping Organizations transform through HR
Today, our post will be based on a key trend we learned at one of the flagship local HR events held in Colombo, Sri...
How important is Data-driven HR?