5 Ways HR Analytics Can Help Improve Bottom-Line Performance | Mansij Majumder | HR Head | UNext Learning
“People before Strategy! Strategy comes from people’s minds and not the other way round, prepare a leadership pipeline with the right skill set to drive and manage your business transformation.” – Dr. Ram Charan, Global Advisor to CEOs & Corporate Boards
Data-driven decision-making is defined as using metrics and data to guide strategic decisions that align with the organization’s or individual’s goals, objectives, and initiatives. Organizations are sitting on a vast repository of data gathered over millions of interactions on a day-to-day basis. When organizations realize the full value of their data, everyone— from the business analyst, to the sales head, to the recruitment specialist — is empowered to make better decisions with data, every time.
Organizations needs to make data-driven decision-making the norm—fostering a culture that encourages critical thinking and curiosity.
People data are an organization’s most valuable and expensive asset. HR leaders understand that data-driven insights based on people data can be pivotal in enhancing bottom-line performance. According to a recent McKinsey & Company report, organizations that have implemented advanced HR Analytics have seen an 80% increase in recruiting efficiency, a 50% reduction in attrition rates, and a 25% increase in business productivity.
HR leaders are increasingly using people analytics to
1. Identify ways to transform the recruitment process, and engage with a diverse talent pool
2. Aligning compensation, benefits, long term incentives with performance
3. Proactively identify and tackle decline in productivity
4. Improve processes and reduce mental fatigue around processes
5. Proactively identify signs of disengagement and determine talent at risk
The points mentioned above sum up how HR Analytics can be beneficial in boosting a company’s bottom line. Therefore, it’s no surprise that a recent Insight222 survey reveals that 90% of companies believe data and analytics play a significant role in their HR strategy. Organizations are actively seeking HR Professionals who are adept at using advanced HR Analytics to make data-driven decisions and contribute to enhancing their bottom line. Improving your workforce analytical skills can help you improve your decision-making abilities and position yourself as a data-focused HR professional.