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October 8, 2024

HR analytics: The path to data-driven decision-making

HR analytics are a must-have for empowering HR teams to streamline processes and add greater value to their organization. Dayforce partner OnActuate explains why and how you can get started.

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HR teams are busier than ever. From recruitment, benefits management, employer branding, payroll, and more – sometimes much more – HR teams are tight on time. Without HR analytics, this often leads to slow decision-making and even slower approval processes.

Do any of these HR pain points sound familiar?

  • The HR team spends a significant amount of time gathering and analyzing data to answer questions for executives, managers, employees and other stakeholders.
  • There’s difficultly identifying top talent and potential leaders.
  • The recruitment process can be slow and inefficient, making it hard to find the right candidates quickly.
  • The HR team often struggles with accurately forecasting staffing needs and managing budgets, especially during planning cycles.
  • There is limited ability to track workforce diversity, making DEI initiatives hard to measure.
  • With data scattered across multiple systems and not updated in real-time, it’s difficult for the HR team to make quick decisions and identify emerging issues or trends.
  • Meeting complex compliance requirements is difficult and time-consuming, especially across different regions.

These pain points can be solved with HR analytics that lead to data-driven decision-making, benefitting employees and the organization alike. Let’s explore how data can help drive HR teams to solve common issues, meet their goals, and optimize already limited time and resources.

The role of HR analytics in addressing HR pain points

Data isn’t just for reporting numbers to determine if goals are being met. Data can be used to make important decisions and help improve an organization with actionable insights. With the right analytics tools, HR teams can streamline processes and address the HR pain points mentioned above.

For example, tools such as an HR analytics dashboard can provide essential, at-a-glance information. This allows HR teams to make fast decisions and easily provide information to executives, managers, employees, and other stakeholders. 

Analytics can also streamline HR processes by providing quick, data-backed answers to critical questions. For example, during budgeting or recruitment cycles, HR teams often need to provide data on workforce needs, diversity statistics, or benefits utilization. Instead of manually gathering and analyzing this information, a well-optimized analytics dashboard can provide instant access to these insights, saving time and resources.

Recruitment analytics can streamline the hiring process by identifying the most effective recruitment channels and predicting candidate success. It can also give insights into how long the recruitment process typically takes, so HR teams can strategically find ways to make it quicker. 

Utilizing analytics to gain deeper insights into employee performance, engagement levels, and turnover trends allows HR to identify high performers and potential leaders, ensuring that talent is nurtured and retained. Also, by monitoring engagement metrics, organizations can proactively identify and address issues that may lead to employee dissatisfaction or turnover.

Finally, compliance reporting is a very common struggle, especially for organizations that operate in different jurisdictions. Analytics tools can automate compliance reporting, helping HR meet regulatory requirements accurately and efficiently.

Optimizing HR analytics dashboards

HR analytics aren’t one size fits all. Not every organization will benefit from the same set of metrics, and not every dashboard needs to be filled with every possible data point. Instead, focus on a few key performance indicators (KPIs) that align with organizational goals and address executives' and managers' top priorities.

Start by identifying the key metrics that matter most to your organization. This will help you narrow down the data points that should be highlighted on your dashboard.

Ensure the metrics you choose align with the broader goals of the organization. For example, if your organization is focused on improving employee retention, your dashboard should highlight metrics related to turnover rates, employee engagement, and retention strategies.

Be mindful that different stakeholders may have different data needs and customize dashboards and reports accordingly. Executives may need a high-level overview while HR managers might require more detailed insights.

And don’t ignore the power of predictive analytics, which can help HR teams anticipate future trends. By analyzing historical data, you can predict potential turnover risks and take proactive measures to retain key talent.

Data-driven decision-making is key to overcoming HR challenges and optimizing resources. By using targeted people analytics, HR teams can streamline processes, improve recruitment, and ensure compliance. Embracing data empowers HR teams to make informed decisions quickly, driving organizational success.

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