HR analytics software is used by businesses and organizations to process raw HR data in an effort to produce actionable insights regarding their workforce, better workplace management, provide more effective staffing analysis, increase employee retention and improve recruitment processes.
The goal of using HR analytics software is to be able to experience all the aforementioned improvements while keeping costs down by simplifying the majority of all HR processes. One of the most important assets of any company is its workforce.
From the recruitment process to talent management to employee retention, HR departments handle quite a lot of responsibilities and various elements that are vital to placing the right talent to the right job position. HR analytics software facilitates a significant portion of those responsibilities through the collection and data-driven analysis of raw employee data, as well as identifying crucial people metrics.
These HR analytics tools work by combining business information and people data in order to determine the HR department’s positive impact on the overall business performance. Companies also utilize HR analytics software to highlight inefficiencies, forecast productivity and optimize workflow as well as workforce organization.
HR analytics tools offer more than conventional data analytics solutions. They provide organizations with actionable insights that are necessary to effectively manage human capital and maximize return on investment or ROI.
This type of software solution is equipped with predictive capabilities as well, designed to help inform decision-makers on how changes in policy and company structure might affect morale and performance among employees. The software may also help inform HR professionals of the possible impact cultural changes in the workplace might have on talent performance and productivity.
HR analytic solutions, which are often called people analytics software, facilitate proper maintenance of every employee data the company has while providing HR departments and decision-makers actionable insights regarding all HR-related processes, including those mentioned above. The fact of the matter is companies, managers and HR personnel use this kind of software to get a better understanding of their employees and to make better decisions intended to benefit everyone in the organization.
There are specific criteria that must be met in order for a software solution to qualify in the HR analytics software category. First off, HR analytics tools are capable of collecting labor, time and payroll information. They must also be capable of measuring personnel performance, evaluating risks, costs and impact of HR policy, as well as monitoring workforce development, objectives and goals. Finally, good HR analytics software must also facilitate the creation of theoretical HR-related scenarios for workforce planning.
There are different aspects in which HR analytics software can be very useful in providing accurate data analysis and valuable insights to help improve your HR initiatives, including:
HR analytics technology is quite capable of providing businesses with reliable recruiting analytics. This will enable companies, recruiters and headhunters better understand their recruiting approach as well as bolster their recruiting data management to help create more effective hiring initiatives.
Business intelligence or BI solutions provide valuable insight into an organization’s workforce needs and specifics, operations performance data, workforce planning and so much more. Top-tier HR analytics software almost always comes with a BI tool to provide reliable, data-driven analysis for decision-makers and stakeholders.
Performance analytics is one of the key components of HR analytics tools. This form of analytics solution is crucial to human resources as it allows them to efficiently assess relevant data in an effort to determine the needs of their workforce, including attendance, leave, benefits and time tracking. Performance analytics may also provide insights with regard to identifying who among the employees are in need of more attention and which ones are comfortable in their current situation.
People analytics provide very important HR data that pertains to employee sentiment analysis. This helps HR professionals, managers and organizations maintain a solid grip on initiatives geared towards employee engagement. People analytics may come with capabilities such as reporting absences and leaves, compensation plan modeling, talent management, succession planning and tracking employee turnover.
Fraud risk management features also feature in most HR analytics platforms. This particular data analytics can help businesses and HR departments quickly identify fraud or fraudulent activities if they occur. These include vendor fraud, asset misappropriation, payroll fraud, accounting fraud and data theft. HR professionals can then use the feature to properly assess the risk for future fraudulent acts so they can never happen again.
HR analytics software may also provide valuable insights into candidate and employee potential through data-driven analytics. In short, HR departments, managers and decision-makers can obtain information based on factual data analysis pointing to which of the new recruits have what it takes to be successful according to data gathered through some of the most successful personnel currently employed by the organization.
HR data collected by your analytics software can also be used to highlight the positive and negative effects of your workforce retention initiatives on individual employee productivity and overall workplace satisfaction.
HR analytics software can do many things to help justify different HR initiatives and prove their impact on workforce management and productivity. What follows are three main HR analytics technology features that make all the aforementioned HR data functions possible.
Automation has become a staple in many business process software solutions. HR analytics software is no exception. In this case, your HR analytics solution can arrange for reports to be automatically sent to and authorize HR professionals, managers and stakeholders. The automated process can then be sent to recipients on regular intervals for efficiency and consistent insight.
When you’re managing data, which in this case is employee data, security is paramount. With that said, your HR analytics software is equipped with the proper security protocols to ensure the protection of sensitive HR data. This way, your HR department and all of your personnel can sleep well in knowing their personal information is safe and well protected.
HR analytics software, while great at performing comprehensive data analysis, can also provide adequate and readily digestible reporting through charts, lists, heat maps and more. This will allow HR personnel, managers and decision-makers to easily visualize critical HR data trends.
Over the years, HR analytics tools have become very user-friendly, allowing HR professionals to get more in-depth with their data analysis efforts.
Most of the HR analytics solutions in the market are cloud-based, which means you don’t even need to install any program or software in your own company servers. This also means you don’t need to update or maintain the platform. Instead, those responsibilities are within the purview of the vendor or service provider.
The following are some of the other benefits your HR analytics software has to offer:
Core HR software platforms are equipped with analytics capabilities. In fact, it has become quite common these days in an attempt to be more comprehensive and versatile. The problem with the analytics function in such systems is that they are mostly unable to integrate data from third-party non-HR sources or platforms. This is not the case with HR analytics software. HR analytics technology will allow you to dive deep into your human resources data to see how workforce trends may affect your business sales and revenue.
While there are a few HR analytics software solutions that mainly focus on HR applications, there are a number of systems out there that can be utilized for other purposes, including distribution, financing, sales and marketing. Now, if analyzing HR data is all that you need, then you should go for HR analytics tools that are solely meant for that purpose. However, if you’re looking to diversify your software to other applications, then opting for a more comprehensive solution might be the more appropriate move for you.
Having the ability to gain actionable insights from multiple aspects of data analysis is a significant benefit. If you can get as much information as possible when hiring new talent and keep them satisfied and engaged, then that is a sure win for your HR department and the organization as a whole. The software will allow you to place the right employee in the right position, based on the accurate analysis of HR data, so new and existing personnel can be productive and properly motivated.
Additionally, HR analytics software can also provide you with useful data on recruiting trends, employee performance, employee turnover and other valuable insights relevant to your HR processes and initiatives.
Entering or transferring data manually can be a tedious and labor-intensive process. It is time-consuming and prone to human errors, especially when there are numbers involved. With HR analytics software, you don’t have to manually move HR data from one system to another. The software solution will do it for you automatically. Any integrated data banks/sources that are being updated will automatically update the information contained within your HR analytics solution.
There are a few good examples of HR analytics software worth checking out, if you’re interested in employing one in your HR department. Kronos, Workday and Visier are among the best-in-class solutions available right now. These three represent the majority of well-designed cloud-based HR analytics solutions in the market. And they offer quite impressive features and capabilities.
Visier, for example, is essentially a data aggregation service. It is an HR analytics software solution designed to provide actionable insights as well as answer questions relevant to your workforce. The cloud-based analytics platform is capable of integrating with various HR systems and connecting them into a centralized BI tool. Visier is designed to facilitate workforce planning and data-driven decision making.
Overall, HR analytics software is a type of business intelligence (BI) solution designed to help HR professionals, managers and decision-makers gain actionable insights from raw HR data. It is meant to help organizations make informed data-driven decisions concerning their workforce, talent management, employee retention, succession and other relevant HR processes.