5 Ways HR Data Can Benefit Your Business

Human Resources teams look after and take care of the business’s most important assets: its people. An HR function that can support people throughout the employee life-cycle is essential; from smooth onboarding to proper offboarding, and everything in between.

What’s more, HR departments can also be a strategic business unit of any company or organization, by providing accurate and constructive employee data. It should not come as a surprise that quality HR data helps companies make better decisions.

HR Analytics may be a new term to some, but many companies have been intentional about using people metrics as part of their wider business strategy for some time. Here, we highlight 5 ways HR data can help your organization.

1. Workforce Planning

Businesses can improve their workforce planning, including hiring, retention and succession strategies, by using HR data. In order to conduct this well, the business will need employee metrics such as performance data, feedback, career trajectory and more. With this data, businesses can build a strategy for their workforce to be on top of their game. In a competitive market, it is important that companies identify and use metrics to improve their workforce planning, helping to identify and overcome challenges when they arise during the employee lifecycle.

2. Provide a space for employees to share their voice

There are various platforms that companies can use to create and implement surveys that help employees share their thoughts and feelings. Tools such as eNPS surveys and engagement surveys provide a space where employees can freely and anonymously share their feedback, without fearing any repercussions. Companies can then analyze the response data to identify trends and pinpoint issues early, so that they can begin to make improvements as an organization. Using this data to take necessary actions can help to boost employee engagement and reduce absenteeism and voluntary turnover.

3. Make better decisions without bias

“Without data, you're just another person with an opinion” is a famous quote that comes to mind in this context. Analyzing HR data to help the business make better, more informed decisions is a key requirement that progressive organizations are expecting of their People leaders. Making data-driven decisions is a sure way to avoid unconscious bias when it comes to improving talent and business management. Whether you want to reduce attrition, improve your workforce diversity or close pay gaps, HR data will play a big role in measuring and reaching your goals.

4. Improve Employee Experience

Hiring, training, engagement, performance reviews, culture etc are all a part of the employee experience. When you use data, businesses can differentiate between a good and a great hire. Similarly, they can decide on a better retention strategy for the people they need to promote based on their performance, leadership strengths and peer feedback. Not only does this mean the company doesn’t lose great employees, but it also improves the overall experience and culture within the team. Moreover, using data can help you understand and identify what kind of training individual employees need, so that they feel engaged and empowered in their role.

5. Optimize HR Processes

When businesses use data and analytics effectively, various people processes and HR reporting activities can be automated or optimized. Repetitive tasks are streamlined by using platforms that are easy to use and understand for both employees and HR staff. Also, managers can be provided with access to team data so they can keep on top of everything - making it easier and quicker for HR and managers to make decisions.

Overall, Data & Analytics helps to create a more strategic HR function that can have a positive impact on business operations and success. Intentional and effective use of people analytics and data should be on your agenda, if it isn’t already. HR Data can benefit your business in many ways, including those discussed in this blog.

DayoneHR supports businesses to implement HR Technology and Analytics systems. If you are looking to improve your HR Data and Reporting tools, then reach out to us here. We’d love to hear from you!