1. People Engagement
Our favourite reason for supporting people analytics is that it makes your employees feel you care about them. And that’s good news for any business that wants to put its people first and create a healthy workplace culture.
When armed with people analytics - managers have the power they need to get attention and results.
With undisputed facts and figures, your managers can start proving the benefit of initiatives and provide persuasive arguments to support recommendations.
2. Get to grips with retention
Improve business performance by getting to the heart of your retention rate and turnover data negate the need to always recruit, its expensive and very time consuming.
Not only will you be reducing the cost of turnover – estimated at an average of £ 10,000 per employee - but you’ll also cut the lost productivity suffered when employees quit their jobs.
The simplest place to start is by calculating your business’ turnover rate:
The formula is:
(Number of leavers over given period x 100)/Average total number employed over given period
So, if you employ 75 workers over a year and 8 leave, then the calculation would be:
(8 x 100)/75 = 10.66% employee turnover rate
Now take this data and compare it to your industry average and split it by employee group to understand the patterns.
Turnover data is most powerful when you review it against other information such as employee exit interviews, training and performance data, payroll data and employee engagement surveys.
3. Improve health & wellbeing
Health & Wellbeing are recognised as a key tool in growing productivity, but it can be difficult to determine whether they’re a problem in your organisation.
Analysing absence data, benchmarking it against your industry and reviewing it over time can give you a better insight into your health and wellbeing performance.
But the story doesn’t end there - as with all measures in people analytics, the value comes with what you do with this data and be receptive to change in some instances.
Coupling it with an employee survey or your knowledge about the pressure your team has been under can help you decide what to do as a result.
If for instance, you notice that parents are taking extra time off, then this may indicate they need extra support to care for their children, especially during colds and flu season or during the summer holidays.
Implementing a flexible work policy or better communicating parental leave rights may help your employees better manage their commitments, as we see home working more acceptable new working practises can help your engagement.
4. Make your recruitment more effective
Using people analytics can help you recruit the right people more effectively.
Instead of firing out job ads to the same channels and recruiters time after time, analyse where your successes have been. It’s worth noting that the same channels won’t always work for different role hires.
This will help you understand the cost of hiring and reduce costs where possible. Not only that, but by focusing on recruitment channels that work for your business, you can save yourself money in advertising fees and fill your vacancies more quickly and help you keep it in-house rather resorting to agency assistance.
And there’s another benefit, too. By analysing your recruitment data and time to hire, you’ll get a more accurate idea of how long it takes to fill gaps in your teams.
This information can help managers plan more effectively and budget for temporary staff if necessary.
5. Help you pay more fairly
Paying your employees more fairly is proven to increase engagement and productivity.
Ultimately, it drives success. What’s more, there’s an increasingly strong push for pay equalitydriven by the need for larger businesses to publish their gender pay gap, do you current analysis this?
You can use your payroll data to analyse your gender pay gap, why stop there? It’s important to ensure all your employees are paid fairly, so consider using the same principle to measure potential pay gaps in ethnicity and disability.
Once you’ve uncovered any discrepancies in your pay equality, you can start addressing the gap and create an action plan.
So, what next?
Digital HR North East are happy to sit down with you and look your business holistically, to help plan the way forward for you free of charge.
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