Strategic Planning with HR Analytics: Uncovering Patterns and Enhancing Performance

Using data for all HR-related decisions is essential for strategic planning. It helps measure various aspects of the people function, such as hiring, turnover and retention, compensation, and more. By analyzing this data, you can uncover patterns that inform strategies for better hiring processes, improved retention rates, and increased productivity.

HR analytics were developed to help businesses optimize their internal processes related to hiring, employee onboarding, benefits, performance, morale, and payroll. It offers a comprehensive view of how well a business is performing by providing a systemic analysis of the people driving business outcomes. Without HR analytics, leaders lack the full picture of employee morale and can’t make well-informed decisions about hiring, terminations, or promotions. Having accurate data, backed by proper oversight, can also provide legal protection by ensuring employee-related decisions are based on more than just opinions or feelings.

Good HR analytic software can provide insights into several key organizational metrics, including:

• Time to fill an open position
• Voluntary and involuntary turnover rates
• Offer acceptance rates
• Retention rates
• Absence rates
• Revenue per employee

Setting clear organizational goals and understanding them is crucial for gathering the right data. HR professionals and business leaders use HR analytics to enhance business performance. These data points offer better ways to serve employees and help maintain top performers, providing a competitive edge and reducing the risk of losing talent to competitors. When employees are unhappy, they start seeking other opportunities.

Presenting managers with HR analytics gives them insights into staffing ratios, the number of staff hired, and turnover rates within their departments, helping them understand business operations better. This can streamline processes and enable better decision-making, saving the company time and money.

Comparing your HR metrics year over year helps identify trends that lead to better decision-making. Additionally, comparing your HR metrics to industry benchmarks validates the accuracy of your data and helps set better goals to improve organizational strategies. HR analytics provide a unique insight into the business that no other data collection method can offer.