HR Strategy & Advisory
Published on 13 Dec 2022
As businesses transition to become more integrated with technology, so does HR technology –this makes analyzing HR data much more convenient with better access to historical and present personnel data.
HR analytics are a core business element that generates different types of data within a corporation. Such data can be used to analyze and guide business strategies, as well as make reports and payments to relevant government tax authorities.
Employee data include personal information, payroll, employee details and tax information. Such information can be a determinant of many factors in a company such as the value of the company and its employees, and undoubtedly plays crucial role in ensuring compliance with local tax regimes and employment laws. Companies may also use this data to assist in improving recruitment and retention policies, allowing for better employee experiences especially in relation to fairer pay and promotion targets across the company workforce.
There’re some very potent ways that a company can leverage on its HR analytics. Here are a few ways!
1. Pay for performance
With information from HR data, companies are able to identify the best payment schemes to motivate employees. With HR analytics, various pay elements can be compared and tied with performance to assess which approach produces the best results. Studies have shown that a higher commission rate enhances motivation among employees, enabling greater work performance.
2. Predict movement
It’s important for a company to understand, turnover rates may not necessarily be a bad thing. With payroll data, companies can analyze and identify the patterns of employee turnover and retention and see if the data correlates.
3. Build work culture
With the help of HR analytics, companies can gauge what preferences their employees have within the workplace. Such information can help improve work environments and enhance a positive workplace culture for employees, which can result in positive long-term effects such as increased productivity and positive work postures.
Applying data science to your HR data is such a powerful tool that can tell you a lot about your employees, past and present. Whether you are a growing entity or a well-established enterprise, there is no doubt that HR analytics will help change the game for your HR strategy. But of course, with such power comes great responsibility. Leaders should only turn to HR analytics to benefit their most important assets – their people.