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A Deeper Dive Into Why Analytics Are Important In Human Resources

Updated: Mar 29, 2023

To put it simply, human resources is the department responsible for managing the employee life cycle. To do so, the experts in the department need to be knowledgeable about a variety of skills and data. They should not only rely on feedback and background education but also on analytics.

But what does that mean, analytics? Why do organizations and companies rely on analytical teams so heavily?

What is Analytics?

Analytics teams take data related to the company and transform them into useful insights that make achieving goals and organizing more efficient and effective.

They primarily retain program, people, and performance data to answer descriptive, exploratory, predictive, and prescriptive questions.

In order to work together, they distribute and share the following responsibilities:

  • Taking numerical insights and turning them into communicative thoughts

  • Relating business insights to corresponding goals

  • Comprehending and analyzing organizational data

  • Collecting, compiling, and storing employee data

Once you have gained an understanding of what an analytical team is, what they do, and what analytics are, it is important to implement the proper skills to ensure your analytical team runs smoothly.

Six women belonging to the Forbes Human Resources Council recently shared ways people analytics is helping their teams navigate their industries. They are the following:

Promoting Diversity

Those on the analytical team take the responsibility of keeping a company’s diversity hiring goals on track and up to date. They take a closer, quantitative look at the candidate pool and current employees to decide how to initiate changes. Overall they can measure growth or lack thereof when it comes to diversity in the company.

Increasing Employee and Job Satisfaction

Tools such as surveys, interviews, and check-ins are good ways of measuring the overall satisfaction of employees. Far too many companies and organizations only take metrics once a year of how their employees feel about their jobs and employers. Continuous tools such as these are a solid way for an analytical team to gain an understanding of their employee's needs and engagement.

Retaining and Retraining of Top Talent and Company Performers

Stella H. Kim from HRCap Inc. shared how analytical insight can help companies train their employees. She compared currency and skills saying skills are the new currency. Investing in their employees is investing in their company. Through succession planning and maintaining competitiveness, companies can build training programs, competitive compensation packages, competitive benefits, and more to invest in their company and employees.

Establishing Succession Plans and Turnover Rates

An analytics team helps organizations pinpoint skills and talent that could be enhanced or already lacking. Having this ability makes way for planning, training, and possible promotions to increase overall performance and efficiency. In addition to promoting the enhancement of preexisting skills, this ability reduces an organization’s turnover rate. Employees who are better equipped for the ever-evolving environment, are less likely to be stressed and resign. Tiersa Smith-Hall from The Hartling Group shared this information with to promote analytics within organizations.

Translating Reports and Context Sharing with Stakeholders

Analytical teams have the ability to share insights with stakeholders across the board. These insights may include progress updates, company news, uphill challenges, industry insights, and more. This is a solid way to keep stakeholders in the loop and maintain communication.

Taking HR Initiatives and Goals Tracking

JacLyn Pagnotta from Allied Partners is yet another proponent of Analytical Teams within organizations. They claim that people analytics can help track and measure HR goals and outcomes when used effectively and efficiently. Analytics, specifically people analytics, is one of the easiest and most successful ways for organizations to track goals and objectives. More often than not, specific goals and initiatives will fail due to improper tracking systems; analytics is a great way to avoid this time of unwanted consequence.

There is more to analytics than one might think. Adding an analytical team to your organization can promote the overall success and organization amongst management and employees. RJ Reliance specializes in data analytics; our experts are ready when you are to get started!

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