Analytics are paramount to running a business intelligently and successfully. However, countless organizations struggle with work environments that fall behind trends; a 2019 Deloitte survey of U.S. executives found that most – 63% – do not believe their companies are analytics-driven.
Now, 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.
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. Measuring data and trends that were once hardly accessible has been the key to countless human resources branches bringing their companies into the 21st century.
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 departures 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.
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. 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.
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.
The scope of people analytics a business needs to succeed may be vast, but HelloTeam can help you excel in all of them. 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”.
If you’d like to see how HelloTeam can help you with People Analytics, schedule a demo today!