In today’s data-driven world, businesses increasingly turn to analytics to gain a competitive edge. Leveraging analytics across a variety of departments empowers organizations to make better informed decisions. And better informed decisions drive outcomes that positively impact their bottom line. According to McKinsey, the use of people analytics increases the efficiency of recruitment processes by 80% and business productivity by 25%.
In this blog post, we’ll go deeper into why these surprising statistics hold true. How? By exploring 10 ways people analytics enhance an organization’s performance and provide value. You’ll discover how to leverage a people analytics software partner to turbo charge your business’ analytics journey. You’ll also discover how to turbo charge your HR team’s strategic value.
So, let’s dive right into the 10 ways:
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A Single Source of Truth
One of the greatest challenges to implementing people analytics involves acquiring the data in a usable format. Each of your HR technology systems has its own set of data. And likely its own naming convention. Hence, you need to collect, integrate and normalize data from various HR and talent management systems. This is where people analytics software is so powerful.
Above all, it establishes a robust and comprehensive ‘single source of truth’ for HR teams. This in turn enables them to make data-driven decisions with confidence and accuracy. A holistic approach to data analysis arms you with valuable insights. And these insights help optimize your workforce and drive strategic HR initiatives for long-term success.
For example, JOEY Restaurant Group is a valued PeopleInsight by HireRoad customer. They use HireRoad’s people analytics software to centralize their data, enabling quick connections and regular updates. They consolidate information from disparate systems including store revenue/sales, performance metrics, people development scores, learning initiatives, secret shops, and focus groups. In summary, using PeopleInsight by HireRoad, they get a comprehensive view of their organization’s data and a single source of truth. This approach equips JOEY Restaurant Group execs with data-driven insights to guide important conversations and decisions.
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Optimize Recruitment
Talent acquisition benefits greatly from a data-driven talent acquisition analytics approach. Leveraging data across systems empowers HR teams to optimize recruitment by identifying high-performing recruitment channels and evaluating recruiter performance. Better understanding the quality and status of their candidate pipeline. And even minimizing bias in the hiring process.
Imagine the impact of arming your talent acquisition team with the ability to optimize and scale with greater confidence and intention.
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Reduce Turnover
For any organization, people are the most important, most significant investment. Also, with people analytics you can analyze patterns and trends to identify risk factors related to employee retention and turnover. These valuable insights allow you to take proactive measures to mitigate risks and deploy processes and programs to retain top talent. And consider that ddressing potential issues before they’re a problem enables businesses to maintain a positive work environment. One that promotes long-term employee commitment and reduces turnover.
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Streamline Performance Management
Next, streamline performance management with people analytics. How? With detailed insights into individual and team performances. Better understanding strengths and weaknesses throughout the organization enables targeted interventions and support where needed.
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Improve Quality of Hire
Enhancing the quality of hire is a crucial focus in recruiting. Yet how do you measure quality of hire? It’s a metric widely valued yet challenging to ascertain. But with people analytics, businesses can optimize employee investment, assess the impacts of first-year outcomes, and identify recruitment channels that deliver. And each of these data points establish effective metrics for measuring quality. As a result, this holistic approach to recruitment attracts top talent and sets the foundation for long-term success and growth.
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Increase Operational Efficiency
Insights into workforce data and processes gleaned from an effective HR analytics function increase operational efficiency. How? By equipping organizations to identify inefficiencies and recommend solutions to streamline operations quickly and accurately. With this data, you can develop and implement new processes quickly. Optimize workflows. Improve collaboration. And enhance overall operational efficiency.
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Boost Revenue
In addition, boost revenue by improving employee productivity and efficiency. In doing so, people analytics contributes to the bottom line. Armed with data-driven insights, you can identify areas for improvement and implement targeted strategies that maximize workforce potential and drive revenue growth.
Also, effective people analytics saves an enormous amount of time for HR departments. This means more initiatives can be tackled. As a result, HR is elevated as a more strategic business partner with direct, measurable contribution to growth.
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Improve Diversity and Inclusion
People analytics is a valuable tool for measuring, monitoring and activating diversity and inclusion within the workforce. And with robust people analytics, DEI is not limited to candidate pipeline and talent acquisition. Understanding diversity analytics across all areas of the business is important to informing effective strategies and initiatives. Imagine fostering a more inclusive environment. One where all employees feel valued and supported. This is much more easily achievable with effective people analytics. Additionally, DEI analysis and data-driven insights can help remove unconscious bias in recruitment processes, promoting fair and equitable hiring practices.
Having the right analytics for diversity and inclusion is crucial for organizations to develop effective programs. By analyzing key metrics, you can identify and address any gaps. For example, Mattamy Homes is a leading company in the home building industry. They introduced the “WiN at Mattamy” program to empower young women within the organization. Through valuable insights, they examined promotion and attraction rates between males and females and identified a turnover issue among highly talented millennial women. This information effectively demonstrated the necessity of the “WiN at Mattamy” program.
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Improve Decision Making
Implementing people analytics supports businesses to make informed, data-based decisions about their people and people processes. HR data is particularly challenging to analyze as it generally is non-transactional and is housed in multiple systems that don’t speak to each other.
But when data is aggregated and presented in a more easily digestible and normalized way, organizations can effectively reduce bias and enhance objectivity in decision-making processes. As a result, this allows for better, more strategic ways to act.
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Real-Time Decision Making
Better decision making is obviously great. And better decision making at scale and at speed, is a real superpower for HR teams. A reliable, live view into your holistic workforce data enables you to identify trends and patterns as they emerge. In summary, this agility in decision-making ensures that organizations stay ahead of the curve and seize opportunities as they arise.
Conclusion
In today’s rapidly evolving business landscape, data-driven decision-making throughout the organization is imperative. And nowhere is there bigger impact potential than your most valuable resource: your people. From optimized workforce planning to enhanced recruitment and real-time decision making, people analytics is essential for business objectives. Furthermore, it fosters diversity and inclusion, ensuring a fair and supportive work environment.
Are you ready to start the exciting journey of people analytics? Engaging with the right people analytics partner turbocharges your progress. PeopleInsight by HireRoad can get you up and running within a single week, and our team of dedicated analysts ensure your analytics journey evolves with the pace of your organization. Moreover, with our robust, both out-of-the-box and highly customized dashboards and expert guidance, you’ll gain actionable insights with unwavering confidence. Discover the power of PeopleInsight by HireRoad and unlock the value of your HR data today! Learn more.
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