<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=690758617926394&amp;ev=PageView&amp;noscript=1">
Skip to content

All About Human-Resources Data Analytics

All About Human-Resources Data Analytics - Complete Payroll

Analytics will likely play a large role in the future of human resources. Data analytics are already a valuable tool in the HR utility kit and can help optimize businesses in a number of ways.

Human-resource metrics help measure how successful HR is at hiring, engaging and keeping premiere talent as well as filling core competencies a company needs to function. They also can reveal vulnerabilities and gaps in employee training and proficiency. 

Below we’ll cover some of the core human-resources data analytics you can use to optimize your human-resources department. 

Employee Churn Analytics 

While some employee churn always will exist (there’s always going to be a necessity for turnover and for HR to remove “toxic” employees), hiring, training and integrating new employees is expensive. In fact, it costs over $4,000 to hire a new employee. 

Most companies use employee churn analytics in three steps:

  1. To uncover their past turnover rates
  2. To calculate their future turnover rates 
  3. To reduce future turnover rates. 

There are many ways to view employee turnover rates through data analytics. Most companies take the number of employees who quit within 12 months and divide it by the average number of employees working within that same 12 months to get what is referred to as the “annual turnover rate.”

Request an HR Software Demo

Employee turnover also can be calculated through various key performance indicators (KPIs) that include: 

  • Employee satisfaction indexes.
  • Employee engagement levels.
  • Staff advocacy scores.
  • Surveys/exit interviews.

When all of this data is applied in actionable ways, it should be able to answer practical questions such as: 

  • How much of our staff is leaving every year? 
  • Which portion of our staff chooses to leave the most? 
  • Where and why is it occurring? 
  • Do age and length of employment impact the decision to leave? 
  • Can other future departures be predicted? 

Capability Analytics

Any business needs a workforce with certain skills and talents, and it’s HR’s job to find people who can fill those roles. 

Capability analytics is a method of identifying the core competencies your business needs. If you can define what competencies are required, you can compare the skills of applicants against the skills of the employees that are already on your workforce. You’ll be able to spot any gaps in your current team and properly focus your hiring efforts. 

Remember that competencies aren’t just about degrees, certificates, accomplishments or other traditionally recognized qualifications. Abilities like charisma, empathy and interpersonal relationship skills are also valuable. 

Competency Acquisition Analytics

Competency acquisition analytics help to understand how effective a company is at attracting and hiring employees with the desired competencies. 

The first step is to have a solid grasp on capability analytics so that you understand what competencies your business requires to operate, how competent your current staff is and where any gaps in competency may exist. 

When you’ve located any competency gaps, the goal is to monitor how effective you are at either developing those competencies from within the company or attracting and recruiting those candidates through your hiring process. 

Recruitment Channel Analytics

Recruitment channel analytics identify where your best employees come from and what channels are most effective. 

You can assess related historical data using KPIs such as:

  • Human capital value-added.
  • Return per employee.
  • Surveys and entry interviews.

It’s also important to source your channel effectiveness and measure your conversions per channel (how many hires are you getting via LinkedIn as compared to Glassdoor?) You can even use Google Analytics to track inbound traffic to the job opening on your website. 

Don’t forget to take channel cost into account as well. Divide ad spending with the number of visitors who successfully applied through the channel to get the cost per applicant. 

Corporate Culture Analytics

Culture plays an incredibly vital role in whether a business succeeds or fails. 

But corporate culture (the set of unspoken rules and behaviors that make up your company) is hard to pin down in a tangible way, so it’s even harder to track on an analytical level. 

Corporate culture analytics attempt to understand more about the culture, track changes, offer ways to implement changes, and create early warning signs to detect toxic cultures in development to ensure you aren’t recruiting people that clash with corporate culture.

Traditionally, the most effective way to collect data about culture was through surveys. 

As HR outlets focus more on data analytics, new methods of culture analytics that embrace big-data processing are emerging. Some of these methods involve the exploration of digital traces in outlets such as Slack, email servers and Glassdoor reviews. By utilizing language analysis, it’s possible to better understand how a workplace culture evolves over time. 

Capacity Analytics 

Capacity analytics attempt to identify how efficient employees are, ascertaining whether employees are spending too much time in one area (such as administration) over another (such as communication). Capacity analytics also seek to establish if employees are stretched too thin. 

It’s difficult to create a capacity analytics system without large administrative burdens or becoming overbearing on employees. Forbes recommends big data and sensor systems. 

Forward-Thinking Human-Resource Solutions

At Complete Payroll, we understand the need to look at the future of payroll solutions while keeping a firm foot in the present. We recognize that you can have all the best HR technology in the world, but it won’t mean a thing if you forget that people are more than just resources. 

We apply innovative payroll and human-resource solutions, offer industry-leading HR tools and supply a number of options specialized for startups of any size. 

Request an HR Software Demo

Get The Newsletter

Bi-weekly on Thursdays. We compile HR best practices, labor law updates & other content to help you pay and manage your workforce more effectively.

Ready For a Move to the Country?

Talk to Sales