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HR Data Analytics Processes: Best Practices

There are so many available ways in which HR data can be analysed and interpreted to improve employee satisfaction, engagement, and essentially organisational performance. However, for HR departments, analysing this data in an accurate manner in order to find business insights is not as easy as it seems. 

Some say the best way to learn is by replicating what successful people do. This article aims to explore a few HR analytics best practices recommended by HR departments that have achieved the ultimate goal (high levels of employee performance and organisational improvement) through their decision-making based on their HR data analytics processes.  

 

Get Expert Capabilities & Help 

Many organisations struggle to implement HR analytics due to a lack of skills and expertise required to actually do the work. Traditionally, employees in human resources and even in IT departments do not have sufficient skills to take on analytics. This often results in badly collected, stored, and analysed data which leads to wrong or irrelevant decisions being made (or outcomes) in the department.  

Don’t be afraid to seek external expertise. Leading HR analytics teams have sought data analytics consultants for end-to-end data analytics support to properly define business goals, problem solve and manage, and learn how to find the correct insights for making future business decisionsThis will enable best practices for data collection, storage, analysis, and implementation for future departmental improvement and organisational performance.  

 

Vision & Strategy Alignment  

Successful HR analytics teams align their departmental strategy, goals, and vision with those of the entire organisation. Setting departmental goals helps create a team identity but it is important to place the team within the broader identity of the business based on the larger organisation’s aims and function.   

The very core of the HR department’s identity, should be being data-driven. By defining the HR Analytics team as a core component to enabling the rest of the HR team, the more the entire HR team identifies as data-centred and insight-driven.   

 

Use Visuals to Drive Action 

It is not enough to have great data collection, cleaning, and analysis if it is not being used to implement improvements or change. Successful HR departments understand that insights need to be visualised in such a way that resonates with its audience in order to inspire particular actions 

The HR Analytics team needs to be able to convey to the rest of the HR department what the data is “saying” in order for it to be understood and for change to occur. For example, if an HR manager is shown a clear visual that the length of time employees work for their organisation is one year, the HR manager can therefore base their employee retention strategy around this insight in order to drive an action in the broader organisation (and improve employee retention rates).   

See the Long-Term Benefits 

Successful HR Analytics teams has saved organisations more money in the long run than the initial cost of the projects initiated by the team. The benefits of implementing HR decisions based on HR data insights can be huge (if the HR Analytics process is done well, of course).  

For example, a large organisation’s “Proactive Retention Programme” analysed which of the employee groups were most likely to leave the organisation. This allowed HR managers to strategise the best ways to avoid this: saving the organisation millions of dollars since it began. Such great results don’t always come quickly, however with investment, time, and the before-mentioned best practices, value will show. 

 

Be Eager to Evolve 

Just like companies, industries, and departments these days, HR Analytics is always evolving thanks you fast-changing technology. Successful HR Analytics teams are proudly aware of any opportunities that could be of benefit for more efficient and accurate data integration, analysis, and visualisation.  

At first even data analytics may seem like an unharnessed opportunity to remain relevant but soon organisation’s may find their HR data analytics is optimised and the next step is, naturally, to look at implementing Machine Learning and Artificial Intelligence to continue this upward growth.  

 

Conclusion 

All organisations are unique and not all of these practices will be useful or even considered “best”. However, depending on the current phase of your HR Analytics processes in an organisation, at least one of these practices will be of use. Investing in and implementing HR Analytics in your organisation is a step toward deeper employee understanding for better, data-driven departmental decisions for the greater success of the organisation as a whole. 

 We provide an HR Analytics Solution customised to your organisational data and based on your phase of your HR Analytics journey with end-to-end support. Click here to find out more. 

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