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Decision-making can be a high-stakes task for HR departments. Apart from managing onboarding and offboarding, HR optimizes each stage of the employee life cycle and all the processes related to it. With so much on their plate, it is only natural for experts to seek the help of precise data to determine the best course of action. In small companies, information can be easily tracked and organized; however, as companies grow, and their headcount increases, the challenges of managing a larger workforce start to appear.
Thankfully, technological advancements have brought a new set of tools that experts can use to gather information and keep processes on track. With the right implementation, companies can gauge the effectiveness of their business strategies, refine organizational procedures, optimize resources, and improve the employee experience.
What is HR analytics?
HR analytics is the process of collecting, analyzing, and reporting relevant HR information to make data-driven decisions. To conduct this analysis, experts use key performance indicators (KPIs) to measure the performance of their workforce, and human resources information systems (HRIS) to standardize the reporting process.
HRIS is a software that allows companies to collect data, but data by itself is useless — experts need HRIS to sort and hierarchize this information to positively impact business outcomes. The copious amount of data that these programs collect can be overwhelming, which is why companies should consider the following to make the most out of HR analytics:
- A metric by itself means nothing: HRIS automatically records data, but numbers mean nothing without clear variables and indicators to interpret them.
- Precise reporting is about setting goals: Wasting time sorting through unnecessary information can delay HR processes. Experts need to clearly define their goals to create precise reports that are tailored to company objectives.
Now that we understand the vital role of HR analytics, let’s explore what aspects can be measured, how companies can turn data into insights, and best practices companies can implement to optimize information analysis.
How to use KPIs:
The amount of data HRIS can collect can be overwhelming, which is why reporting is a core element of an efficient HR analytics strategy. The first step is to categorize the information at hand and determine its utility based on the purpose of the analysis. For example, if a company wants to restructure its recruitment and hiring strategy, then metrics such as time to fill and time to hire can be helpful.
Here are other examples of how KPIs are used in HR analytics:
Recruitment and hiring:
When recruiting, it is fundamental to focus on KPIs related to how the company is sourcing talent and how efficiently new employees are hired. With the following metrics, companies can either refocus their strategy or avoid potential mistakes.
- Time to fill: the time between creating a job opening and the position being filled.
- Time to hire: the time a candidate spends on the recruitment process — from application to offer acceptance.
- Offer acceptance rate: the number of candidates that accept the company’s offer.
Culture, engagement, and retention:
Hiring is only the first step. Retention and engagement are fundamental for companies to achieve their global growth goals. The following KPIs allow companies to identify internal pain points and act on them before they become major issues.
- Turnover rate: the percentage of employees that leave the company.
- Absenteeism rate: the number of unexpected employee absences.
- Average tenure: the time an employee stays with a company.
- Participation rate: the percentage of employees that engage in the company’s cultural initiatives.
Employee performance:
Companies that measure workforce performance will discover new areas of improvement and detect potential problems that could hinder their profits. The following KPIs are fundamental to determine if a company’s processes are effective or need to be restructured.
- Revenue per employee: ratio that measures a company’s total revenue divided by headcount.
- Task completion rate: how often and how quickly employees finish their tasks.
Training and development:
Companies that offer training for their employees provide opportunities for professional growth, boosting talent retention rates and engagement. The next KPIs measure employees’ development and efficiency, allowing companies to understand if they have a successful training program and how to improve it.
- Training success rate: the percentage of employees who complete a specific training.
- Competency rating: how proficient employees are with specific skills required for their position.
- Advancement rate: the percentage of employees who advance to higher positions within the company.
How Globalization Partners can help:
Collecting data and measuring KPIs is not enough, a successful HR analytics strategy needs custom reports to bring all the pieces of the puzzle together. Software that allows experts to visualize information without complex processes is the true key to success. Using the right tools is as critical as understanding how to leverage data and interpret it.
Globalization Partners’ Global Growth Platform™ centralizes all your global employees’ information in one single place. Thanks to the self-service feature, everything is simplified and streamlined, allowing you to access all your employees’ data. Simple, easy, and efficient.
Our Global Growth Platform™ empowers companies to make data-driven decisions. Our customers can view, filter, and analyze employee data, such as:
- Payroll
- Benefits
- Time
- Expenses
Our platform also offers detailed reports and interactive dashboards that are updated in real-time. Everything is available to download 24/7 with support from our team of HR experts. Remember, information is the first step toward successful global growth — companies that base their global strategy on trusted data will be better equipped to overcome all the challenges that arise on the road to success.
Contact us or request a proposal to start your global growth journey and learn how our platform can help you build global teams and support your international strategy.
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