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People Analytics | 5 min

HR Analytics – everyone is talking about it, but what exactly is it?

HR Analytics – everyone is talking about it, but what exactly is it?

HR Analytics simply refers to drawing insights from employee data to make strategic decisions. 

Sounds simple, right? If we could have all the information we need to make important decisions available at our fingertips, just think how much easier our lives would be, and the results we could generate. 

These are the capabilities available to all organisations today, and yet we know many businesses are yet to take full advantage of People Analytics. So why is this the case?

In 2020, it’s clear that HR Analytics is no buzzword. It’s not going anywhere, yet many organisations are yet to embrace it to its full extent.

Deloitte cites a few reasons for this, from organisations struggling to capture the right data accurately to not having the right skills in-house to analyse it.

But the truth is that utilising HR Analytics effectively doesn’t need to be out of reach or reserved for only major companies. These capabilities are now accessible to any business, and you certainly don’t need the skills of a data scientist to get value from them.

If you’re in a position where you’d like to explore the world of HR Analytics more but are facing some roadblocks, let’s explore everything you need to know to start getting value from your people data. 

This is what HR Analytics really means to us:

 

HR Analytics is not separate from your current processes – it’s a by-product of them

One common misconception about making use of People Analytics is that it requires the HR team to spend extra time and energy on data collection; this is not the case. Now of course, if you want effective insights to base decisions on, you need to have quality data to analyse in the first place – but that doesn’t mean any additional data collection is actually required. 

Our tip here is to not think about your people management, data and analytics tools as separate entities – but rather one continuous and integrated process. With a system like intelliHR, all you need to do is carry out your normal HR processes, and all relevant people data is automatically captured and analysed in real-time. Now the insights you need are available on demand, in just a few clicks.

Let’s look at an example. When you complete your normal monthly check-ins through intelliHR, these are just a few things that happen automatically in the background:

  • Any qualitative answers on the feedback form undergo Keyword and Sentiment analysis. 
  • If you’ve asked your people to rate their happiness in their role, this information will flow through to your Happiness Analytics.
  • Your Task Analytics will show you how people are engaging with feedback and who is (or isn’t completing) it on time.

Even the need to complete some of these processes in themselves can be reduced by using automation tools to send out requests for repetitive tasks, and allowing employees to self-service where appropriate. 

One great example of this is training. With an integrated system in place you can:

  • Allow staff to enter their own training records whenever training is completed.
  • Set-up an automated email asking their manager to create a training action plan
  • Set-up an automated email requesting feedback from the manager and direct report after this has been actioned.

The best part of these automation tools is you only need to implement them once, and then it’s just a matter of ‘set and forget’.

Then, as a result, you will be able to:

  • Instantly see what training programs are having the biggest impact on performance.
  • Instantly see which training programs are delivering the biggest returns.
  • Instantly see which business units or individuals are making use of their training budgets.

 

HR Analytics is accessible to anyone, in any business

On that note, HR Analytics today doesn’t require specialist data analysis skills to interpret or understand. Because today’s tools can automatically process your existing people data for you, and present the findings in simple, visual graphs or charts, they’re accessible and helpful for everyone. Using a tool like intelliHR also means these insights don’t have to be reserved only for the HR team. You can also allow leaders in the business to access relevant insights about their team, allowing them to share in the benefits of this information, without needing to request it from HR. 

Advances in technology and the expansion of Software-as-a-Service options with affordable monthly subscription models also means these tools are more competitively-priced than ever, making them accessible for even small businesses.

 

HR Analytics gives HR a seat at the table

Looking at the impact People Analytics can have on HR more specifically, it’s a game changer in terms of allowing HR teams to make decisions backed by data. This is absolutely key in moving HR’s responsibilities away from a support role, and into a strategic decision-making space;  giving HR a seat at the table where they deserve to be. As we know, it’s your people that are ultimately responsible for the organisation’s performance, and no team has a better idea of how to motivate and support them that the HR team – especially when armed with the right data!

 

HR Analytics helps keep your organisation performing

With the HR team now able to effectively share insights on people and performance on a leadership level, and directly contribute to strategy, the whole business will be able to enjoy the subsequent positive impact on bottom line results. We know that organisations with engaged employees can see 2.5x greater revenue compared to those with a disengaged workforce, thanks to increased productivity. In this way, organisations really taking advantage of their people data can continue performing at their peak and remain competitive. 

 

HR Analytics is a tool to give your people a voice

There are endless possible uses for HR Analytics to motivate your team and keep people engaged, but one of the most impactful effects it can have is giving your people a voice (especially in large or geographically dispersed locations). Even if we are asking for feedback from every team member, the large sums of quantitative responses gathered can be difficult to read, process and absorb word-for-word. Keyword and Sentiment Analysis tools allow us to break down and understand trends across the whole organisation, so we can act on feedback from everyone, without important information slipping through the cracks. Achieving this has simply never been possible before.

We hope this has helped to clarify your HR Analytics knowledge and inspire you to make some changes in your own organisation. If you’d like some guidance on how to get started, our team is here to help.

 

 

 

People Analytics | 5 min
HR Analytics – everyone is talking about it, but what exactly is it?
HR Analytics simply refers to drawing insights from employee data to make strategic decisions.  Sounds simple, right? If we could have all the information we need to make important decisions available at our fingertips,...
People Analytics | 5 min
What to do with sentiment analysis data
Recently we compared how employees were feeling in 2019 to the COVID-19 outbreak of 2020. Sentiment analysis data can be a powerful way to track how your team is going, but sometimes when you...
People Analytics | 5 min
Monitoring employee wellbeing during COVID-19: What we’ve learned.
At intelliHR we’re lucky to be able to help our customers with the collection of employee engagement and sentiment data, as well as helping them extract insights from this data and understand the dynamics...

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