Companies that use HR analytics see 82% higher three-year average profits than their low-maturity counterparts, according to research by Deloitte. 

McKinsey found that companies with a strong background in using HR analytics saw:

·       80% increase in recruiting efficiency,

·       25% boost in overall business productivity  

·       50% reduction in attrition rates.

HR analytics is the grease that enables the smooth functioning and relevance of HR technology. It uses data to help make intelligent decisions about your employees.

With the right data set, you can look at how well your employees are doing, how many are leaving, and how happy they are. This helps you figure out where things could be better, and you can fix them right away.

So, if you're in charge of HR for a small or medium-sized company, HR analytics could become your secret weapon!

The Roadmap to HR Analytics 

The journey of a thousand miles begins with a single step. So, the roadmap to HR analytics effectively starts by collecting data about your workforce and making sure it's accurate and reliable. Focus on generating reports and analysing this data to uncover insights that help you understand current trends, diagnose problems, predict future challenges, and prescribe solutions. 

Embrace a forward-thinking, design-oriented approach, develop a commercial mindset, and view HR decisions in financial terms. Here are some of the basic steps you need to take:

1. Understand Existing and Future Data Sources 

You should start by understanding the data sources in the organisation for HR. It serves as the foundation for any analytics capability, enabling you to grasp the financial implications and insights within your organisation. 

Equally important is your external awareness – knowing what your competitors are up to in areas like recruitment and development. Internally, you must be well-versed in the strategies of your affiliated business units, their initiatives, and the vital role of people in driving these strategic imperatives. 

2. Design Interventions that Showcase HR’s Strategic Value

The next step is to explore how you can demonstrate your strategic value. One effective way to achieve this is by supporting strategic initiatives. This involves revisiting and applying some forgotten techniques from the past, like job design, organisational design, and scenario planning.

Employee experience is a crucial strategic initiative HR should embrace and champion alongside the broader business objectives. Lastly, there's a need to future-proof talent practices. This requires shifting the focus from outdated models to forward-thinking frameworks.

3. Demonstrate Impact and Build for the Future

Post-intervention, encourage interaction, ensure data ethics, and always follow up with actionable steps. Strive for a balance between visuals and verbal explanations, linking insights to key performance indicators. Continuous improvement and adapting to audience needs are essential in this iterative process.

In summary, data-based insights are best communicated when they are accessible, relatable, and actionable. By understanding your audience, using effective storytelling and visuals, and maintaining a feedback loop, you can bridge the gap between data and informed decision-making.

Download the ebook for a detailed guide on how HR analytics can boost your HR decisions. 

This ebook is designed to help you dive into the details of embarking on an HR analytics journey and to underscore how analytics can empower HR leaders like you to assume a more strategic role.

Within the pages of this ebook, you will learn about:

Understanding the Role of Analytics: Understand the vital role that analytics plays in HR, giving you valuable insights into how it can benefit your organisation.

Navigating the HR Analytics Implementation Journey: You'll explore the step-by-step process and considerations involved in implementing HR analytics successfully, helping you on your journey.

Best Practices for Maximising Impact: Practical strategies and best practices to enhance the impact of HR analytics within your organisation, helping you make the most of this valuable tool.

In summary, HR analytics tools are indispensable for enhancing workforce management and productivity within your organisation. Despite the wealth of data available, the need for more skilled individuals to harness its full potential remains a common challenge. 

Ultimately, you can embark on a data-driven journey towards HR excellence by modelling the financial impact of your HR initiatives, understanding the enduring importance of data metrics, and preparing for necessary managerial, cultural, and educational shifts.