If you want your organization to grow bigger, better and more powerful, you need a lot of things to go right. One of them being a smart and dynamic approach to human capital management.
In recent years, one major change in the field of HCM has been the rise of analytics. Data is available everywhere in business today – in the cloud, on mobile devices and circulating through corporate intranets, for example. The availability of data has led to a rapid increase in companies using it to improve their HR strategies.
Our team at Ceridian has explored this topic in a lot of depth recently on the blog. Below, you’ll find a recap of a few key messages we’ve explored relating to HR analytics.
Is your company ready? There’s an undeniable connection between HR and finance. The key to running a business is managing your budget and bringing in more money than you spend, and talent is always one of your greatest expenses.
That’s why today’s companies are investing a great deal in smart financing strategies that can help with HR. According to our research at Ceridian, almost 70 percent of companies have had at least one HR function report to the finance office before. In time, this figure will only keep increasing.
Time to play “Moneyball” In baseball, the Oakland Athletics used data to find a competitive advantage. They found certain types of players who were undervalued – such as those who emphasize taking walks and getting on base – and used those players to build a talented roster for cheap. In short, they were exploiting market inefficiency.
You don’t have to be a baseball team to think this way. Any business can get ahead by using analytics. All you need to do is report the relevant data, learn the important metrics and develop a sense for verifying your “gut feelings.”
It’s time to measure engagement Employee engagement is a vital ingredient in any successful business. If you want to get ahead, you need to have people that are dedicated to their jobs and willing to work hard. Engagement is important – super important, which is why data that shows where engagement is at in your organization, that you can analyze and act on, is crucial to your success.
We reported that according to Journal of Financial Economics research, employee satisfaction can cause a 3.5 percent increase in your company’s annual stock returns. And yet so few companies are taking notice! Another key data point is that 64 percent of companies are either not using HR analytics or are only doing so sporadically. This gap needs to close. Employee engagement is the future.
Drive your company forward If you want your organization to keep improving there’s really investing in HR analytics is a must. Set targets for your goals, then follow up frequently. Consider adding data specialists to your staff who can help. If you’re willing to go the extra mile when it comes to analytics, you might be surprised at the results you ultimately get.
To learn more on these topics click here to see Greg Trok’s work on the blog. A passionate HR tech advocate and holder of a Six Sigma Master Black Belt, he devoted an entire post to each of the 4 points above. Follow him on Twitter @Trok6439.