If you’re an HR leader in a fast-growing company, you likely prioritise the design of agile processes, assess risk tolerance, and evaluate growth potential. However, when it comes to workforce decisions, do you depend on intuition and anecdotal evidence, or do you leverage the immense power of data?
At a time when data-based insights are everywhere, relying on gut feelings can become a severe disadvantage. HR analytics is already empowering SMEs to harness the potential of their human capital, transforming data into actionable insights.
A recent study by Gartner showed that forty-four per cent of HR leaders said that driving better business outcomes is their top strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26%) and cost optimisation (17%) were ranked as the next most important priorities.
Are you collating the right analytics to serve your decision-making on these areas?
The rise of HR analytics
HR analytics as an approach utilises data to address crucial questions about an organisation’s workforce, aiming to enhance performance and inform intelligent business decisions. It consists of several pillars, including workforce planning analytics, talent sourcing analytics, talent acquisition analytics, employee engagement analytics, employee value and performance management analytics, talent attrition and retention analytics, and employee wellness, health, and safety analytics.
Moreover, it supports strategic workforce planning by aligning with business strategies, tracking employee performance, health, and satisfaction, and fostering effective communication within the organisation.
Here are areas where technology can play a critical role in fast-growing companies
Fast-growing companies often grapple with high attrition rates due to several factors. Where rapid expansion strains resources and processes, making it difficult to provide adequate support and development opportunities for employees, it can lead to frustration and attrition. Additionally, intense competition in dynamic industries creates an environment where employees are frequently enticed by job offers from competitors, increasing the likelihood of turnover.
Using technology-based analytics, companies today can access comprehensive analytics over a period of time. From understanding metrics related to gender, performance, experience and reasons, companies can use pointed inputs to inform their talent strategy. For example, Keka offers HR analytics that can help with attrition management by identifying workforce attrition rates. By using these insights, organisations can identify the reasons behind employee turnover and take proactive measures to reduce attrition rates. Keka’s HR analytics also generates instant insights that can help organisations make data-driven decisions to maintain and recruit talent.
Aligning performance metrics with the company’s evolving objectives can be difficult in a fast-growing company. Setting meaningful goals amid rapid changes and employee recognition and rewards may also suffer. Fast-growing companies face challenges in performance management, including scaling performance evaluations, setting clear expectations, and ensuring consistent standards.
To address these issues, companies should invest in HR technologies that offer robust performance management systems. They must train managers, establish consistent standards, and prioritise regular communication and coaching with employees. Monitoring key performance indicators (KPIs) like sales targets, project completion rates, and customer satisfaction is essential for evaluating individual and team performance. This practice enables the identification of areas that require improvement and facilitates the recognition of high achievers.
Rapid changes and uncertainty can lead to disconnected employees. Limited communication and lack of personalisation can reduce trust and make employees feel undervalued. Increased workloads and stress can cause burnout and decreased engagement. The lack of feedback and recognition can demotivate employees.
Assessing employee engagement levels offers valuable insights into job satisfaction, productivity, and the overall well-being of the organisation. This can be achieved by conducting surveys, implementing feedback mechanisms, or analysing employee communications for sentiment analysis. For example, Keka’s pulse surveys allow answering questions anonymously so your people can provide honest responses without contemplating how the interviewer thinks they should respond. Find out more about pulse surveys here.
Compensation is another area that can pose challenges for SMEs due to limited resources, difficulty in benchmarking, inconsistent practices, and lack of visibility and transparency. Limited budgets make it hard to offer competitive packages, while the absence of benchmarking data can lead to improper compensation levels.
HR technology-based analytics can play a crucial role in addressing these challenges by providing data-driven insights and facilitating informed decision-making. By leveraging compensation analytics, SMEs can align their practices with the market, make fair compensation decisions based on employee data, identify areas for improvement, address retention issues, and mitigate compliance risks.
Fast-growing organisations rely on various workforce trend data to effectively manage their workforce and make informed decisions. This includes tracking hiring and attrition rates to assess workforce stability, monitoring employee performance to identify high performers and address underperformance, and tracking engagement and satisfaction levels.
Keka’s trend line reports offer a comprehensive overview of workforce trends, allowing you to monitor employee productivity and review team attendance effortlessly. With detailed information on employee shifts and attendance tracking policies, you can generate customised reports to suit your specific needs and gain valuable insights into your workforce dynamics.
HR analytics emerges as a critical tool for fast-growing companies, enabling them to leverage data-driven insights to overcome challenges and optimise their human resources. By adopting HR analytics practices, these companies can enhance recruitment strategies, improve performance management, boost employee engagement, and foster a culture of continuous improvement.