It seems like everyone is talking about HR analytics, but few companies are actually putting them to work. According to one CEB survey of 350 HR professionals, only 5% felt their organization was using human capital analytics effectively—although 89% indicated they’d like to do better.
If you’re an absolute beginner, you may still be asking (under your breath)…but what are HR analytics, exactly? For our purposes, basic HR analytics is statistical data collected by a human capital management system—using HR analytics software built right into the HCM system.
HR analytics allows employers to measure and monitor certain aspects of their workforce’s behavior, managers’ performance and even the effectiveness of some HR processes. This not only allows organizations to make continual improvements, but forecast their future human capital needs.
Key HR Analytics to Know
While HR analytics software can generate a goldmine of valuable information, for many employers, these are the areas of greatest interest:
Recruiting Metrics - Recruiting metrics offer unprecedented insights into the talent acquisition process, such as: how long does it take to fill various positions within the organization? Which sources provide the most quality candidates? And what’s our interview-to-hire conversion rates?
Attrition and Turnover Rates – HR analytics software can track attrition and turnover rates, by worksite or department as well as company-wide. Not only will this help you identify what’s working and where’s there’s room for improvement, it can help you anticipate future talent acquisition needs and plan accordingly.
Talent Management Data – How long does it takes to onboard and train new employees? How many employees have specific certifications and competencies? Assuming your HCM system includes a professional learning portal, your HR analytics software can even tell you who’s using your learning platform and how, yielding valuable data about your in-house talent.
Time and Attendance Reports - For most companies managing an hourly workforce, employee time and attendance continues to be a very real issue. HR analytics software can keep you on top of incidents of tardiness, absenteeism, overtime and PTO—filtered by worksite, shift, manager, etc. Some HR analytics also provide insights into related manager activities. How long does it take to close open time clock punches? Who’s making unauthorized time card or payroll changes? These HR analytics can offer fresh transparency into how your workforce works.
Labor Compliance Oversight – Robust human capital analytics software will allow you to run reports on your EEO, OSHA, VETS, and ACA compliance, as well as COBRA events and wage garnishments. You can maintain oversight into these programs without collating time-consuming manual reports, allowing you to ensure—and prove—you’re operating in compliance.
3 Questions to Ask When Evaluating HR Analytics Software
If your company looking to upgrade its HCM system, HR analytics software should be part of your evaluation process—even if it’s new for you. For organizations just starting to use human capital analytics, these are some important questions to ask:
How easy is the system to use?
Ask your potential HCM providers to give you a live demo of the HR analytics software. Does the system include a real-time dashboard, and is it user friendly? Can the dashboard be customized by each HR user and manager as needed?
What standard reports are included?
It’s important not only to know how many standard reports are included, but what they are. Request a list! In addition, ask if data can be filtered through various lenses, so you can view the information on your own terms.
Are custom reports available?
If it doesn’t look like the reports you need are part of the standard package, ask if the HR analytics software includes a custom report writer function or if the HCM vendor offers custom report writing services—and if so, how that works.
Keep in mind: when it comes to HR analytics, some HCM providers are more advanced in their capabilities than others. Don’t be misled by high-tech terminology. Ask as many questions as you need to understand how it works. In this brave new world of human capital analytics, there are no stupid questions.
How EPAY’s HR Analytics Software Stacks Up
EPAY’s HCM system is designed to be easy to use—and so is our integrated HR analytics software. It gives employers the intelligence they need to manage their workforce and HR processes better.
EPAY’s HR analytics software features a customizable, user-friendly dashboard and a library of 1,200 standard reports, complete with a range of filtering options. Many reports were designed at our customer request. Users cannot only run ad hoc reports, but distribute them electronically or export the data to other applications.
In addition, our HR analytics software includes built-in custom report writer capabilities—and you can offload custom report writing to our in-house experts as well.