Retaining top talent and increasing workforce productivity are two major concerns, particularly for SMBs. The current job market is highly competitive and many of the top candidates are extremely choosy. Additionally, retaining the right employees is critical to the success of any business. However, most companies have access to a wealth of human resources data that can be highly useful in providing insights into the retention and productivity of your workforce.
HR Data Points
There is a wealth of data that would fall under the HR umbrella. Each industry has unique data points that can be collected and helpful for in-depth analysis. Here are just some of the more common data points available in a human resources department.
- Utilization and Time Entries: Looking at what employees are doing throughout the day, and how time is utilized, allows you to identify underperformers and overperformers. This can be helpful in balancing workloads and increasing productivity and overall project management, potentially improving morale. It can also help with determining staffing needs and whether departmental shifts or reorganization of staff roles is needed.
- Employee turnover rate and length of service: This data provides valuable insights into employee satisfaction and can highlight areas where the company needs to make improvements. For example, if the turnover rate is high, it could indicate that employees are not satisfied with their job or the company culture. Conversely, if it is fairly low, it might mean that employees are happy and best practices are working in your company’s favor.
- Performance evaluation scores and feedback: This data can provide important insights into employee productivity. This data can be used to identify top performers and provide targeted training and development programs to help less productive employees improve. It can also highlight strengths and talents in your workers that you can tap for particular projects or for rising leadership potential.
- Attendance records and punctuality: These data points can assist with monitoring and improving employee engagement. If an employee has a high number of absences or is consistently late, it could indicate a lack of motivation or other underlying issues. By addressing these issues, organizations can improve employee engagement and productivity will rise.
- Training and development programs participation: Data points in this area provide valuable insights into employee engagement and development. By tracking program participation, organizations can identify employees who are seeking to improve their skills and provide targeted programs to help them reach their goals. This leads to higher job satisfaction and a more motivated workforce, which again, drives business outcomes. It can also help with talent spotting in your workforce.
- Employee engagement surveys: These surveys provide insights into employee satisfaction, motivation, and overall well-being. By using this data, organizations can identify areas where improvements are needed and take steps to address these issues. This is especially valuable in a positive workforce culture where there is significant ownership of the company’s mission, vision, and belief systems.
- Demographic information: These data points provide valuable insights into employee engagement and satisfaction, and they allow for disaggregation which is often hidden behind the aggregate. For example, organizations can use this data to identify patterns or trends in turnover rate or job satisfaction among different groups of employees. This information can then be used to develop targeted strategies to improve engagement and satisfaction among these groups where a higher need is noted.
- Salary data and promotions: Organizations can identify patterns or trends in pay and promotions, which provides a window into employee satisfaction and motivation, as well as inform leadership structures. This information can then be used to develop targeted strategies to improve employee satisfaction and motivation or provide incentive or recognition programs to further support those who are demonstrating higher levels of satisfaction.
- Job Satisfaction Surveys: This is another measure that enlightens leaders about employee satisfaction and motivation. By using this data, organizations can identify areas where improvements are needed and take steps to address these issues. This can lead to a more motivated and satisfied workforce, which can drive business outcomes.
- Exit Interviews: When an employee leaves an organization, it is often valuable to discuss reasons for leaving and other topics related to the ending of one’s employment. This can provide valuable insights for the employer around strengths and weaknesses of the culture within the organization that can help point them in the direction of what is working well and make informed decisions about potential areas needing change.
What’s the Impact?
According to a study by the Society for Human Resource Management (SHRM), the cost of losing an employee can range from one to two times their annual salary. This includes the cost of recruiting and training a replacement, as well as decreased productivity during the transition period.
Given the high cost of employee turnover, it’s important for SMBs to understand why employees are leaving. HR analytics can provide valuable insights into why employees are quitting and what can be done to retain them. For example, data can reveal patterns related to employee dissatisfaction, burnout, scheduling issues, and job fit. This information can then be used to make changes that improve employee satisfaction and engagement, ultimately influencing the bottom line.
Productivity is another important metric for SMBs. It’s a measure of the efficiency of a company’s workforce, and it can have a significant impact on the company. According to a study by the Harvard Business Review, increasing employee productivity by just 1% can result in a 3-4% increase in a company’s profits. HR analytics can provide valuable insights into which employees are the most productive and why. Additionally, if HR data shows that a high number of employees are frequently absent, the organization can identify the root cause of this issue and implement strategies to reduce absenteeism. All of these data points can provide valuable information that can then be used to make changes to improve employee productivity, such as providing flexible work arrangements or offering training and development opportunities.
Morale and motivation can have both positive and negative impacts, depending on the climate within the organization. Collecting data in this realm can provide insights into organizational culture, factors that are enhancing or detracting from the work environment, and aspects of employee motivation. This can aid HR in creating customized incentives, recognition programs, and support services to best bolster employee morale and further fuel productivity and retention.
Using HR data can help organizations retain employees, improve morale, and increase productivity. By utilizing HR data, organizations can make data-informed decisions that improve the overall employee experience. When employees are satisfied with their job, motivated to do their best work, and engaged in activities as a member of a team, productivity and performance will likely rise. By using data analytics to adjust action steps around clearly identified strengths and weaknesses, SMBs can improve business outcomes and increase their competitiveness in the market.
If you would like to improve your use of data and data-driven decisions, reach out to your Solution Advisor at Klik Solutions. Your data can take you places! What’s your destination?