Businesses have increasingly been making use of data about their customers, operations and products to better understand and react to their customers’ needs in a timely manner. Data-driven analytics are now a common tool used by business owners for growing their business. Another type of analytics that is starting to catch in is HR analytics, also called people analytics or talent analytics. Employees are the biggest investment that a company makes and businesses are looking for ways to increase their return on investment.
What are HR analytics?
Business owners are recognizing that relying on gut instinct for hiring and promoting employees is not the best way to reach their business goals. HR analytics is a type of analytics used by managers and executives to help make decisions about individual employees and their workforce overall. Specifically, talent analytics uses large sets of talent data in conjunction with statistics, technology and the expertise of trained HR professionals to help businesses make better talent decisions and improve processes. Organizations that have the most success with people analytics are able to separate out the relevant data and determine how to use it to make effective decisions about their workforce.
According to a report by LinkedIn, 71% of companies see people analytics as a high priority but only 22% are currently using HR analytics. While the buy-in is still relatively low, more and more businesses are realizing the benefits of using data as a predictive talent model to manage their workforce.
Benefits of HR Analytics
There are many benefits to HR analytics tools, including:
- Helps businesses make more strategic talent decisions.
- More efficiently and successfully find, recruit and hire the most qualified and passionate employees.
- Identify characteristics of the highest performing employees.
- Analyze employee engagement to improve retention.
- Better tailor employee training programs to specific needs.
- Identify the right career paths for employees.
- More easily recognize the best candidates for leadership positions.
- Quickly identify “pain points” or worker gaps in the organization in order to identify needed investments.
- Gain a competitive advantage over competitors by hiring, promoting and retaining the best employees.
Part of the reason that more companies are using analytics tools these days is because systems are more accessible than they used to be. Once a tool for large businesses only, small to medium sized businesses can now easily buy ready-made analytics tools and adopt integrated, cloud-based HR systems.
Feeling overwhelmed with HR tasks for your growing business? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!