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workforce analytics
To be truly valuable to the business, HR data should be combined
with business performance data to generate trends and correlations
that push towards the why rather than the what.
Talent has become a scarce commodity and organizations are now applying analytics to
understand their employees better. The essence of effective analytics in any segment of an
organization is the distillation of dizzying amounts of data into actionable information. An effective
analytics system must act as the conduit to information that is otherwise hidden from view.
Workforce analytics makes the data-driven decision making possible and moves businesses
beyond guesswork, intuition, and ad-hoc spreadsheets.
Market demand for workforce analytics is on the rise as business leaders increasingly recognize
that the right talent is critical to bringing business strategies to life. Equally important is the ability
to access and analyse the right information to support talent-related business decisions. For
delivering analytics that provides right insights at the right time, companies have started to
recognize that there is need to the end in mind while designing any analytical
framework. Workforce analytics has aided the HR industry in four broad aspects.
Does my organization have a sufficient number of individuals with the right skills to
support a new product launch?
What training interventions would be most useful to increase the productivity of my
offshore contact center?
Which recruiting channels are providing me with the most effective sales leaders after
three years at the organization?
What are the factors that differentiate higher-performing managers in my most productive
branches?
What percentage of my engineering workforce is eligible for retirement in the next three
years, and what is the propensity of eligible engineers to actually retire?
Without clearly identifying problems that have a direct impact on business performance,
organizations run the risk of investing time and energy in areas that are not a priority.
The purpose of measuring any business process is to obtain actionable information for
improvement. Key Performance Indicators (KPIs) offer a measure of the performance of your
business. The following are common KPIs covering talent management:
Overall talent retention rate
Cost to hire talent
Time it takes to hire talent
Average tenure of new hires
Time to full productivity per full-time employee
Revenue per full-time employee
Impact of voluntary and involuntary employee loss rates on revenue
Diversity statistics
Number of senior positions and the depth of bench strength