Recent HR and people analytics Data by Deloitte suggests that while 75% of businesses see people analytics as "important," just 8% consider themselves to be "strong" in this area.
Despite the significant return on investment that a people analytics platform may provide, HR managers often struggle to implement a coordinated strategy. Moreover, in a job that is becoming increasingly data-driven, the fact that more than 80% of HR professionals rate themselves as having low analytical skills is cause for concern.
Why is HR Workforce Analytics Software the Need of the Hour?
The pandemic has changed the job market. Companies now realize that stable remuneration doesn't motivate workers. Workplace happiness, empathy, trust, and acceptance matter more. With all these factors adding up, measuring these parameters using obsolete technologies is a task for human resource leaders. Metrics on employee engagement, cost per hire, critical job attrition, and gender pay parity are tough to gather from different spreadsheets or complicated systems.
Know More: HR Alert: How People Sentiment Impacts Productivity!
However, modern, cloud-based HR analytics tools that enable HR to use people's data in more timely and effective ways to help organizational decision-making are quickly eliminating such technological challenges in many organizations. Because of this emphasis on talent quality rather than talent costs, effective people analytics software is essential.
Here's all you need to know about people analytics software and how it's transforming the HR game.
How will people analytics software transform the employee life cycle in an organization?
Attracting top talent, enhancing employee satisfaction, and boosting output and performance may all be achieved through a deeper understanding of the employee life cycle and the appropriate methods of engaging with employees at different stages of the cycle. An efficient HR analytics software makes this employee lifecycle management process seamless.
The employee life cycle covers the entire relationship between an employee and the organization they work for.
There are seven stages in an employee life cycle model:
- -Attraction
- Recruitment
- Onboarding
- Retention
- Development
- Offboarding
- Happy leavers
Here’s how analytics software helps manage the seven stages of an employee's life cycle.
1. Attraction Phase:
People analytics software helps you determine if candidates have the relevant skills and expertise.
Career page analytics show how many people visit, where they come from, how long they stay, and what activities they do.
2. Recruitment Phase:
The second stage of an employee's life cycle is recruitment. It's about hiring the appropriate people and giving applicants a fantastic experience from applying to accepting your offer.
In this phase, the people analytics platform can help you:
- Track hiring funnel entries, progression, and exits.
- Streamline operations to finalize the right set of candidates
- Get insights on Candidates’ Net Promoter score or level of satisfaction during the entire recruitment process
- Know the time-to-hire recruiting metrics that highlight how long it takes from a candidate's application to an offer.
3. Onboarding Phase:
The onboarding stage of the employee life cycle is where the foundation of the employer-employee relationship is laid. An effective HR analytics software will help you track the following metrics:
- Time to productivity:
New hires take time to become productive. This measure can assess your onboarding process's efficiency. You may need to improve new hire training if workers take a long time to become productive.
- New Hire Satisfaction:
This might help you assess how well you're onboarding new hires and making them feel at home.
4. Retention Phase:
Retention takes the longest in the employee life cycle model. Here’s how an HR analytics tool can aid your retention rate.
- Tracking employee retention: The percentage of employees who stay with a company for a year. High-retention companies have happier workers.
- Tracking voluntary turnover: The percentage of employees that quit voluntarily. Significant voluntary turnover is a sign of employee unhappiness.
- Tracking eNPS: This helps you gauge employees' recommendation rates for their company.
5. Development Phase:
Lack of career advancement is occasionally a contributing factor in post-pandemic job turnover. It's crucial to recognize your employees' capabilities, how the organization can use them, and provide adequate learning and growth opportunities.
Here’s how the best workforce analytics software can aid your development phase:
- Tracking the training ROI: This metric assesses training ROI. It can assess your company's training programs' efficacy and value.
- Gauge Post-training employee performance: This indicator assesses a company's training's influence on employees. It can measure whether employees are able to implement what they learned at work.
6. Offboarding Phase:
Offboarding is crucial once an employee quits. During their departure, employees should feel appreciated, prepared, and supported. In the offboarding phase of the employee life cycle, an efficient people analytics platform can help you track the following metrics:
- Exit interview completion rate: This indicator reveals how many of your employees completed an exit interview or survey.
- Offboarding score: A score that evaluates your company's offboarding process. High offboarding scores imply satisfied staff. A low score suggests you could enhance your employee leaving management.
7. Happy Leavers:
A company's largest mistake in employee retention and engagement is presuming people won't return.
The reality is that as many as 1 in 4 people who quit their job in the Great Resignation regret their decision, so you can capture boomerang employees who had a good experience at your organization.
Use the HR analytics software to track the following aspects and boost your rehiring rate.
- Registrations to alumni network: This indicates the success of your alumni outreach and engagement strategy. If they enjoyed their experience at your company, registered alumni will keep in touch and return.
- Email open rates: Alumni interested in staying connected with your company will open your emails. This measure can evaluate alumni outreach.
Understanding the employee life cycle model helps HR leaders make informed decisions that benefit people and the organization.
Exploring the Importance of Data Security for HR Analytics Software
Regarding people analytics, data security is a significant concern for the majority of HR professionals. Unfortunately, traditional methods for conducting people analytics expose sensitive information to security risks. This is because the approaches require the transfer of confidential workforce data from HR systems to spreadsheets or data visualization tools for analysis.
People analytics software eliminates the need to manually extract data from a secure HR database. The authorization procedure in people analytics software gives you command over the data's presentation and lets you tweak who has access to what at any given time.
In addition to enhancing HR functions like recruitment, training, and retention, HR analytics software may also boost the health of your enterprise as a whole. With the use of analytics, you can keep track of your progress, compare it to past results, and pick up on any major shifts. As a result of the shift in emphasis from the quantity to the quality of employees, businesses will need to invest in HR analytics solutions to monitor and report on workforce analytics in a secure environment.
With 300+ clients, 1.5 million+ platform users, and a global presence, you can trust HONO's future-ready, AI-backed HR analytics solution that is a part of our full-suite HCM to deliver. Do reach out to us to know more about our solutions. Schedule a Demo
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