Anyone familiar with running a website has some idea of what analytics are. Programs are designed to collect specific data, which can then be analyzed to determine results. In terms of websites, analytics can be used to chart anything from traffic, to time users spend on certain pages, to the funnels that lead consumers to complete purchases.
Such data is invaluable to business owners, helping hone efforts and make choices that will increase traffic, sales, and other types of conversions. The same basic principles can also be applied to employee management.
The right human resources (HR) analytics software can help improve metrics in a number of ways where a company’s workforce is concerned. So what is this software and what exactly does it do?
What are HR Analytics?
HR Analytics, sometimes referred to as talent analytics, involves the application of analytic processes to the workforce. These systems gather data about employees in order to chart efficiency, spot problems, develop insights into the role employees play in company successes and failures, and, ultimately, to provide employers with the appropriate quantitative data to make informed decisions to increase productivity and profit. HR analytics also refers to the software (and sometimes hardware) created specifically for the task of gathering such data.
Generally speaking, the goal of analytics is to collect and analyze data in order to gain a better return on investment (ROI). This pertains to HR functions in a variety of ways.
The HR department is often responsible for hiring, firing (or at least conducting exit interviews and handling layoffs), and managing employee-related issues. It can be difficult to make direct cause-and-effect connections between employee behavior and business outcomes. With the right HR analytics software in place, however, even seemingly unimportant data can be viewed as part of the bigger picture.
For example, a flu bug that sweeps through the office over the course of a fiscal quarter, resulting in an unusually high amount of sick leave, could be linked to reduced productivity and profit during the quarter (and perhaps even the next as everyone plays catch-up). Without HR analytics, your organization might never even consider this factor.
Integration with Other Analytics
In most cases, employers will use HR analytics data in concert with other analytics pertaining to manufacturing, sales, customer retention, and so on. By correlating this data, business managers can get a more comprehensive overview of their operations in order to see what is being done right and where performance issues are impacting business goals, generally providing insights that allow for improvement moving forward.
Choosing HR Analytics Software
There is no shortage of options to choose from when it comes to HR analytics software, with different solutions offering a variety of useful tracking and reporting features.
When looking into providers, employers should consider selecting one that understands each particular goal, helps find workable solutions, offers integration with other applicable software, and provides ongoing support.
Naturally, cost is always a concern, as well, but with many options to consider and software (and hardware) providers dedicated to finding solutions for every client, any business should be able to get the HR analytics products that are right for their company.