How Can HR Analytics Improve Employee Performance Evaluation

There is more to human resource function than just onboarding and hiring. With the addition of HR analytics, the human resources domain has experienced a radical makeover. Companies use HR analytics to figure out employee turnover, enhance the talent supply chain, obtain insights to help decision-makers, and more.

When unified with a company’s overall action, HR analytics can improve profitability, performance and productivity. Further HR analytics offers a single-window into the talent and workforce data to drive business processes. 

HR Analytics and Performance Management

HR analytics covers five leading areas:

⦁ To develop HR performance

⦁ Converting the role of HR as a strategic partner

⦁ Forecast demand in vacancy and skills within the company

⦁ Determining attrition and its cause

⦁ Performance evaluation and management

A decent appraisal process and performance evaluation is key to a joyful workforce, and leads to superior business outcomes.

Traditionally, performance evaluation has given towards practices such as the Bell Curve Method. The methods are time-consuming and subjective. Poor dynamic, inaccuracy, bias and inadequate feedback make such methods a worst fit for current work environments. 

This is where HR analytics come in convenient. Its first element is tracking and collecting high-quality data. The collected data usually comes from the HR system already in place, development and learning systems, and other techniques of data-collection such as cloud-based systems and mobile devices. The type of data collected includes – performance data, training, retention, employee profile, salary and promotion history, absenteeism, engagement, etc. 

For the performance evaluation, HR analytics can help in the following ways:

⦁ Establish clarity in annual reviews using data – backed decisions, granting authority to the whole process. 

⦁ practicing performance prediction to measure hand out benefits and business performance

⦁ By adequately extracting insights from the available data, HR managers can identify better performance and encourage them, leading to lesser attenuation. 

HR Analytics for the evaluation process

Predictive analytics: It is applied to the workforce to classify patterns on both team and individual level. The correlated algorithms can provide objective insights into the performance drivers and work preferences. 

Engagement: With analytics, HR can classify engagement activities that indirectly or directly impact employee performance. It has two advantages – encourages companies to invest more in activities of performance building and in characterizing a metric that associates performance with engagement. 

Real-time analytics: Many companies such as Microsoft, Google and others are moving from an annual performance evaluation to more real-time performance analysis to make timely decisions. This measures performance more broadly and helps notice red flags and predict which workers come under the flight risk division. 

Succession: Using HR analytics for valuation and performance evaluation also means that HR can use the same data for succession planning. It can assume promotions, transfers and professional break-ups beforehand. 

Better Insights: Analytics helps workers derive most from feedback. Since it is data-backed, such performance feedback in most cases had an effective impact on employee productivity. 

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