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.