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Why Leaders Must Understand the Power of HR Data

Why Leaders Must Understand the Power of HR Data

You may have heard the phrase “data is the new currency." Where following the money was once the best practice for making business decisions, data has taken over as the foundation to plan and optimize business operations. 

HR may be seen as a department concerned more with people than numbers, but that’s evolving, too. As it turns out, the analytics you can get from employees can be a powerful tool for leaders as they strive to create a productive and positive work environment. 

HR data is an integral part of running a successful business in many ways.

HR Data Gauges Employee Satisfaction

Never underestimate the power of a satisfied employee. Employees that are happy where they work are more productive, provide good word-of-mouth about your company outside of the building, and keep turnover low. 

One powerful way to gauge the level of employee satisfaction is by conducting regular surveys. The data you collect is powerful when looking at strengths and weaknesses of an organization and making data-based decisions on how to improve work culture.

HR Data Promotes Inclusion

Knowing the ethnic and racial makeup of your workforce can be another way HR data helps leaders make decisions. This data can help improve hiring decisions, address gaps between applicants and new hires, and encourage leaders to widen their scope when it comes to recruiting new employees to the organization. 

HR Data Keeps a Remote Workforce Engaged

Over the past two years, many workforces have gone either fully or partially remote. That can make things a little trickier when you’re trying to ensure that your employees are engaged. 

HR data can help you spot trends when it comes to remote workforce engagement and treatment, versus in-person. For example, the data can show you whether remote workers have equal access to promotions, compensation, and benefits. Making sure that employees are treated equally no matter where they clock in can keep all employees satisfied with their job experience. 

HR Data Keeps You Compliant

With the evolution into a hybrid workforce, it’s now not uncommon for a workforce to be spread out all over the country or the world. When that’s the case, it is up to the company’s leadership to make sure the company remains compliant with different laws and regulations regarding labor. For example, even if your home office is in Indiana, if part of your workforce is in California, they are entitled to different benefits such as paid sick leave that other states may not mandate. Access to your employees’ data will keep you aware of different compliance issues. 

HR Data Improves Employee Onboarding

Once a new hire is onboarded and begins their new role, tracking turnover rates within your company can help you make decisions about the hiring and onboarding process. If the data shows you that turnover is high after a short period with the company, it can be a conversation starter for how new employees are brought into the company and what is being done to keep them there. Additionally, gathering further data with a new employee survey can help ensure you are making the onboarding process as successful as possible to avoid high turnover. 


HR data can be a powerful tool for HR and leaders alike and help fuel the decision-making process for all parties. If the goal is to create a satisfied, productive workforce, there’s no better place to start than looking deeper at who your workforce is and what they want from their job role. 

If you’re looking for the right tools to help you easily and quickly collect and analyze HR data, look no further than Advanced HR by Complete Payroll. Our comprehensive system can help you collect all the metrics you need to make informed decisions about how you run your company. For a free demonstration, contact one of our professionals today to discuss how we can make your job much easier and more efficient with Advanced HR. 

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