Separating HR Management Software Analytics fact from fiction

Analytics are a progressive feature that many businesses can benefit from. However, the degree of benefit from integrating predictive analytics into daily decision making may vary greatly from business to business.

Analytics and Staffing:

Analytics can help businesses figure out how to optimize staffing by comparing historical data to current trends and making recommendations. For example, if a retail store would have promoted from having five additional workers during a peak season during the previous year, analytics may assist hiring managers to recognize this need and hire temporary employees as needed. It is vital to remember that external factors that the system is unaware of my also come into play, however.

Objective Recruiting:

When analytics are working during the recruitment phase, worker candidates may be asked to take certain psychological, skill, and personality tests. The information from these tests and from resumes may be run through the system against other candidate’s information so that the top candidates can be designated.

While applying Analytics to Recruiting can assist large companies to more objectively move employees from one phase of recruitment to the next, this may be overkill for medium or small companies. If recruitment processes seem to be working well and the business culture is favorable, spending the time and money to add analytics to the mix may simply be unnecessary.

Predicting Turnover:

Being able to spot patterns that lead to turnover can be advantageous. When analyzed and applied properly, predictive analytics may help organizations to change practices that are causing employees to quit or that are contributing to an unsatisfactory work environment. It is important that these patterns are reviewed and discussed before action is taken, though, as some patterns may be correlative as opposed to causational and an HRIS will not be able to discern the difference.

Managing Performance:

Analytics may help companies to figure out how to optimize performance management. By cross referencing the right information, employers may be able to tell whether a raise, performance review, or perks have a higher motivational impact. Analytics may even help companies figure out exactly where to apply raises to receive the greatest ROI, whether at a certain level or department.

Performance Management:

It can be improved greatly using technology and analytics, it is important to integrate these tools with the human element. It is significant to integrate and leverage technologies, but retain personal touches and recall that new does not always mean better.