Many businesses create reams of data each and every day. Metrics allow you to turn this information into something more useful.
The same is true of HR reporting and analytics. Reports contain the data, while analytics turn that data into something useful for your business. With better analytics in hand, you can make smarter business decisions. This is only one reason you need HR reporting and analytics. There are many more, including these ten.
1. Boosting Profitability
The first reason any business should adopt analytics in any department is to take advantage of the profitability boost. Getting more information about your HR activities can tell you any number of things.
Analytics in HR let you leverage your most important resources more effectively. In turn, you can see where you can reduce overhead, giving your profitability a boost.
2. Lower Turnover
HR reporting and analytics provide insight about turnover statistics. In turn, you can use this information to lower your turnover and reduce your costs. Since turnover costs American businesses millions of dollars each year, this is nothing but good news.
Analytics can show you where you have high turnover and even assess why people leave. In turn, you can revise policies to keep your top talent longer.
3. Increase Productivity
How happy and engaged are your employees? How easy is it for them to complete their day-to-day tasks? HR reports and analytics give you the statistics to back up anecdotal evidence your employees provide.
It also shows you where your procedures can be refined. Maybe employees need a new tool to complete a job efficiently. Maybe there’s a repeated step in the process. Analytics can show you.
4. Use Time Effectively
HR reports and analytics illuminate many situations. Who are your most productive workers? When are your busiest seasons? Are you hiring many temporary workers, or are you scheduling too many people on certain shifts?
Essentially, better reporting and analytics can show you how to use your time more effectively.
5. Creating a Strategic Plan
How can you plan for growth? By creating a strategic plan, of course. How can you create a strategic plan if you don’t know your company’s strengths and weaknesses? By using HR reporting and analytics, you can discover those strengths and weaknesses. They’ll show you where and how you can improve.
6. Growing the Business
Similar to how they help you create a strategic plan, better HR reporting and analytics can show you how to grow your business more effectively. Many businesses feel unprepared for growth, so using the insights collected from your HR department can show you a better way forward.
7. Checking Compliance
Another reason you need analytics in your HR department? They can tell you how compliant your business is. Different reports can demonstrate just how well your policies reflect the letter of the law. They may even be able to show you what to change to become more compliant.
8. Give Better Benefits
Another key to employee productivity, engagement, and retention is offering a good benefits package. HR reporting and analytics can shed some light on your current offerings in this area. You might also find some recommendations for improvement.
9. Employee Performance Management
You want your employees to grow and succeed, but you can’t help them if you have no idea how their performance stacks up. Reports and analytics help you measure performance across all tracks: individuals, teams, and departments.
10. Monitor the Health of Your Business
Your people are your largest asset, so HR reports and analytics give you some insight into the “health” of your business by reflecting the state of your workforce.
Getting insight into the HR department shouldn’t be put on the backburner. It’s just as important as, say, measuring productivity in the IT department. HR reporting and analytics are vital to the success of your business.