Analytics are paramount to running a business intelligently and successfully. However, countless businesses struggle with work environments that fall behind trends; a 2019 Deloitte survey of U.S. executives found that 63% do not believe their companies are analytics-driven.
Profit isn’t the only metric a company should track. People analytics have become crucial to business operations as companies begin to realize the value of their workforce’s strengths and the insight statistics can provide to improving employee retention.
People leaders need to be able to analyze the relationship between human capital and their bottom line. Employee talent must be attracted, retained, and developed in the most sustainable way possible in order to maximize the impact everyone has on the business.
These intricacies can be unlocked by mastering people analytics. Countless human resources branches have brought their companies into the 21st century by measuring data and trends that were once hardly accessible. This data can reveal ways to simultaneously improve productivity and boost employee retention.
Using low-end tools like spreadsheets by yourself to allocate everyone’s data and trends is time consuming, and can also be misleading. Without your finger on the pulse of your company’s human capital, your business may be run less efficiently and employee turnover could become more rampant. Fortunately, modern people management software can act as the hub for all the information you need on your staff. With all that said… what exactly should you be measuring?
Analyzing Human Capital
It starts as early as the hiring process — knowing the trends of who’s being hired to what departments, average time before promotion, and any trends of employee retention are all essential to getting a holistic view of the typical person in the company. Learn to prioritize attention to certain teams and departments to mitigate turnover.
One of the most essential reports for human resource leaders to understand is the distribution of matured employees. When addressing a retention problem it is crucial to note whether the employees that are leaving are typically new or matured. That way, you can best pinpoint the source of turnover and address it most efficiently.
For new hires, high levels of turnover could indicate problems with hiring, on-boarding or a general disconnect with the company’s culture. Alternatively, retention problems among matured employees indicate dissatisfaction with benefits, work-life balance or a lack of engagement. Understanding which groups experience the most turnover problems will allow chief people officers to make better, smarter employee retention plans as to where to allocate funds for such initiatives.
Alongside these growth and retention reports comes a data-driven glance into your team members’ skills. For businesses small and large, it’s vital to know who specifically is best fit for a role or project based on their past experience and proficiencies. This is equally important when building a project taskforce – whether choosing likeminded workers or ones from each corner of the field.
Studies from USI have shown that it costs an average of 6-8 months of a respective salary to find a replacement for a salaried employee, while some postulate it could cost over a year’s worth. It can be difficult to recognize the impact of high employee turnover until you evaluate the volatility in your payroll and recruiting budgets. For reasons of both culture and finance, employee retention is essential.
The scope of people analytics a business needs to succeed may be vast, but HelloTeam can help you become one of the companies with the best employee retention programs. For a deeper dive into the types of data CPOs should deliver to their organizations, check out our E-book: “People Analytics Reports Every CPO Should Have”.
We have much, much more to say about employee retention in HRM – to learn more about the steps of employee retention, check out our article, How to Retain Employees in 2022! We have a lot more on the subject as well – take a look at our e-book on Mastering the Employee Experience, or our 10 HR Strategies For the Retention Crisis piece, as told by experts from many of the industries we discussed above. All of our resources can be found in our Library – check them out here! To see HelloTeam, the employee retention platform, in action, click here — and to set up a meeting with us, go here!