Developments in Human Resources Management operations are being merged with comparable changes in data and information processing, which are restructuring our business strides. The capacity to capture and successfully make sense from their data has made many enterprises worldwide to restructure their processes and sustain their growth. Data analytics has become the benchmark across functions like Accounting, Finance, Retail, Marketing and operations. Yet, a field as ubiquitous and vital as Human Resource has only woken up to Data Analytics in recent times in predictive decision making.
The current global scenario in which businesses are struggling to stay afloat is truly extraordinary. Lockdowns have been enforced, the global supply chain disrupted, and businesses pushed to adapt and thrive in the new normal. HR analytics is a well-rounded tactic that leverages statistical modelling and advanced analytics methodologies to analyze employee data sets and extract actionable insights to improve resource allocation and decision-making. What HR Analytics does, is to transform the raw HR data into comprehensive information for the strategy formulation and successfully Develops a great Innovation .
Just like other departments in an organization, HR has targets and monthly goals to be achieved and also have a continuous challenging task of controlling attrition at the Workplace. Companies are now using HR Analytics to help the businesses save time and money by reducing employee attrition rate while improving retention. Unlike Employee Turnover which is specific to jobs that an employer will seek to fill shortly or immediately after the employee leaves or is terminated, attrition rate refers to positions or jobs within a company that an employee retires from or leaves and the employer chooses not to refill the position. HR Analytics can help a Company reduce attrition and costly changes and losses in its human capital.
It can be difficult for an organization to measure the causes of attrition, however, with the recent developments in technology the HR department can now predict attrition and control it through HR analytics. By offering crucial insights on employee metrics, happiness index, contentment levels among others, HR analytics helps a Company to come up with proactive measures to keep attrition under control. In this article we have discussed 6 ways that HR Analytics can help reduce attrition in an organization.
Clear Data Definition
HR Analytics helps in defining data in a more vibrant manner. When you have a clear goal in mind, you end up building the best Data sets. As an HR professional before analyzing attrition, it’s important for you to separate the relevant data from the rest, since indistinct definition, Leeds to confusion when dealing with a lot of data. Data associated with the satisfaction of workers is crucial when one wants to make a decision of leaving the Company. When you become more detailed in your reporting, that’s when the data becomes beneficial. The HR professional should always consider all the metrics and touch points that are directly related to the satisfaction levels of employees from all the departments in the Organization, right from the managerial level to the junior workers. Factors like age, sex, marital status, monthly income, job group, promotions done, job descriptions, work-life balance, salary increment among others should always be considered.
All the above factors affect the emotional levels of an employee and the outcomes on these will give the HR professionals a clear image on possible attritions and the time, allowing them to take any corrective measure.
Job Description Analysis
Employers are usually interested in knowing whether each job role adds value to the Organization as a whole. There is an increasing focus on this in competitive markets where minimizing costs while increasing profits has become essential. Attrition usually requires the HR officers to analyze the role of that particular job before anything else. Many at times a new position is not really needed in the Company or maybe the need description needs to be updated to match the current organization needs. One way of reducing future attrition is keeping the job roles current by looking at any factors that may impact the role in the near future, such an expected shutting down of some Company branches that may create redundancies in the near future.
Through HR analytics the HR managers will be able to clearly understand the importance of each position in their organization. This is achieved by examining the following areas: Is the said position necessary/can the work be divided among current roles? Can this be done without drastically impacting the daily duties of others? Could it be more cost effective to add the duties of this role to someone else’s and pay them more to do it? If the position is necessary, should it be a full, contract or part-time role? Is the position likely to become outdated with advances in technology?
Personnel Employment History
As an HR professional, it is important for you to find patterns in an employee’s work culture and career and predict if they would fit into the organization or stay for a longer period. This is made possible through HR Analytics. For an employee who has worked in more than five companies in a short span of two years, it is easier to come to a conclusion, using HR Analytics that the maximum duration that the employee will work for the Company before getting bored is 6 months.
Records Patterns and Data on this trend can give the HR staff a new perspective on a likelihood of a turnover and even analyze the reasons behind his actions. If the employee kept changing employers for better working conditions or better salary, the HR can easily organize for a meeting and take necessary measures to control attrition when the time of the year for the employee to leave arrives. When a meeting is organized and the underlying issues discussed, this may save the Company from losing their talent to another company.
Distinct Records for Each Division
Each Organization has several departments which are unique in their functions. When you have a database as a whole and then work on attrition reports, the results can be confusing since whatever happens in Finance department is not the same as what happens in the marketing department. To be able to manage retention in the best way possible, it is important for the reports to be classified through departments and work on Analytics. Using HR Analytics, human resource managers will be able to polish the organizations necessities and get a clear picture on which department has more attrition, reason behind the attrition, any attrition pattern that can be spotted, morale of the staff in that department, challenging tasks available, among others. The working conditions and level of satisfaction level for an employee in operations can be different from the one in front office management. Breaking down the factors into fragments using HR Analytics gives HR managers vital information that will help the organization to come up with better and distinct results and insights. Again, dealing with each section separately, will help the organization to take predictive and preventive measures for each section and therefore reduce attrition.
HR professionals are in possession of a lot of data that can help the Company prevent their good employees from leaving. Using this data, HR Analytics helps a company with attrition problems to be able to reduce it through improving engagement with the employees. Several factors that drive employee engagement at work can be observed through stories that they share. Every person has job related stories which can play a key role in defining how people connect in an organization and therefore help figure out how employees feel about their work.
HR analytics allows one to get into the data which helps the HR Managers to discover why the staff have different stories to tell. Since many HR departments get so buried in data which makes it difficult to discern the most valuable insights, it’s good to start with the basics when asking for feedback from employees. One such basic story can be to find out whether the employees are proud of working with the Company. It helps measure their engagement and give HR professional a heads up if methods are not working to create an effective and committed employees. By looking at performance reviews among other data, managers will have a measurable way to understand which employees are performing well and better identify why; is it their supervisors, their past education and experiences, their personality, or the organizational culture? Through HR analytics the company will get a foundation for finding out what works and what doesn’t.
Effective Feedback Management
Feedback is vital in any business operations as capturing that feedback is essential for the company’s growth and adaptability. HR Analytics helps reduce attrition by ensuring that employee feedback data is captured effectively. If for instance, the HR manager has focused on only analyzing feedback from exit interviews, he is just doing a post-mortem instead of getting in front of the matter early enough. As much as Exit interviews are important, it would be beneficial to know about the bad stories early enough.
HR should make it a habit to regularly request feedback from their employees while keeping track of current sentiment among employees. In order to make that feedback effective, the HR professionals should reassure the employees of the importance of giving honest feedback to clear the suspicions that usually come with gathering data.
Creating a culture of encouraging transparency helps with getting valuable feedback before it comes to an exit interview. Regular reviews and exit interviews is the best way to help an organization understand why employees leave, why they don’t feel satisfied, or what your Company can improve. Feedback is essential to growth and HR Analytics helps you grab that data, understand its worth, then use it to create solutions.
Employee attrition can be disruptive and costly for an organization especially during this times that many businesses are struggling. In the current markets where competition for talent is aggressive, HR Analytics plays a critical role in finding practical ways of helping reduce attrition.Its therefore important for all staff in the HR Departments to make data-driven decisions to attract, manage, and retain employees, which improves ROI.
If you haven’t started off with HR analytics yet, it’s not late as this is the perfect time for you to up-skill and make 2020 the best year for your career, department and organization at large. Click Here to know how Predictive Analytics Lab can help you become a data-driven HR Analytics professional. .