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People Analytics

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People Analytics

5 min

7 Ways You Should Measure Your Workplace Culture

7 Ways You Should Measure Your Workplace Culture

Can you easily describe your workplace culture? If you can’t, that could be a sign of a bigger problem. A weak or non-existent culture is not neutral; it signifies a lack of direction and cohesion. A strong and clearly defined culture is critical to taking your business to the next level.

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Can you easily describe your workplace culture? If you can’t, that could be a sign of a bigger problem. A weak or non-existent culture is not neutral; it signifies a lack of direction and cohesion. A strong and clearly defined culture is critical to taking your business to the next level.

Workplace culture is complex and unique to every organization, but at the same time, it’s often simply described as “the way things are done around here.”

Gallup expands on that by explaining that “culture is the unique way that your organization lives out its company purpose and delivers on its brand promise to its customers.” Culture will develop with or without your input. Without inputs and systems, culture will falter. With input, a system, and a strategy, culture can help you achieve your organization’s unique goals. That’s why organizations must define the culture they want and communicate it widely and often to stay top of mind and prevent unproductive fringe cultures from forming.

A strong and distinctive culture has countless benefits, including:

  • Improved and more straightforward people management (leaders know which behaviors to encourage and celebrate within their teams).
  • More effective hiring (candidates and hiring managers will have a better idea of cultural fit).
  • Increased levels of employee engagement that bring a whole other host of benefits.

The results also translate beyond employee well-being to business results. For example, culture directs how employees interact with customers and helps keep employees focused on your organization’s mission and purpose. What's more, a recent survey conducted by MIT and Glassdoor found that 85% of CEOs and CFOs believe that an unhealthy corporate culture leads to unethical behavior.

So, how do you manage culture to reap all these fantastic benefits?

As the saying goes, “you can’t manage what you can’t measure.” Once you and your leadership team have done the work to establish the values and behaviors you’d like to see as part of your culture – how do you measure success? How can you quantify the strength of your culture and the value it brings?

We’ve broken down culture analytics into these three broad categories:

  1. Sentiment: Sentiment data and insights tell you how employees feel about their role and organization - you would typically collect this through surveys or interviews. Sentiment data is very valuable. It can help you confirm/disprove assumptions and get a pulse on the overall employee experience at a specific moment in time.
  2. Behavior: Behavioral data provides insight into what your employees are doing day-to-day and the qualities they possess. Where sentiment data tells you how people feel, behavioral data tells you how they work in practice. Behavioral data can help you understand if your employees are living your corporate values.
  3. Relationship: Relationship data showcases how your employees are interacting with their colleagues and teams. It can highlight strong connections between departments and where those connections may be lacking. Connection and communication are critical to a healthy workforce; relationship data and metrics indicate your organization's performance when it comes to building culture.

With that in mind, here are 7 methods and metrics you should use to measure your workplace culture:

1. Surveys

Surveys are a great tool to get honest feedback from your entire workforce. You probably already run periodic employee engagement surveys - Inc has rounded up examples of facets indicative of culture you may want to ask about in your next round. Surveys help you understand overall employee sentiment and alert you to any trends or issues within your workforce.

That said, surveys should not be relied upon as your only culture metric. There can be bias and inaccuracies in surveys based on each respondent's frame of mind when taking it. The most effective way to track information about your culture and employees (also known as HR/People Analytics) is to layer survey data, with behavior and relationship data collected using other methods described below. Surveys collect data about what people think or feel, but not about what they do, nor how they interact. There are dozens of great survey tools and resources in the market ranging from Microsoft Forms and Survey Monkey to high-end solutions like Qualtrics and Glint.

2. Program & Event KPIs (Key Performance Indicators)

Sometimes what happens outside of employee’s roles and day-to-day tasks can be the most telling. Another way to measure the health of your culture is to track attendance at social events or wellness campaigns over time. While everyone’s reasons for not attending vary, a general lack of involvement could indicate a lack of social cohesion and shared values across employees. As a piece on workplace social functions by SHRM explains, “HR should view employees' reluctance to attend a social function as a window into a potential human-relations or culture issue at the company." This is an example of behavior data as it tracks the actions of employees.

"Sometimes what happens outside of employee’s roles and day-to-day tasks can be the most telling."

3. Anecdotes

Keep track of anecdotal feedback to uncover patterns or common themes. Make a point to review the anecdotes in leadership meetings weekly, monthly, or quarterly. Some examples of places you can collect these include exit interviews, Glassdoor reviews, and social media posts.

One remarkably simple but effective way many of today’s HR professionals are collecting this information is simply by regularly asking employees to complete this sentence: “I don’t know why [your company name] doesn’t just ____.” Anecdotes are another example of employee sentiment data but can often also give great insight into behaviors and relationships.

4. HR/Workforce KPIs (Key Performance Indicators)

Tracking HR KPIs is key to understanding important cultural shifts (positive and negative.) The good news is that most of this data is likely readily available in your HRIS (Human Resources Information System.) These KPIs include turnover rate, rates of absenteeism, internal promotions, and referrals.

Another important metric is the eNPS (employee net promoter score), which you can collect through the surveys mentioned above. Tracking these quantitative metrics against your culture initiatives can help you understand how you’re doing. For the most part, this is an example of behavior data as it summarizes actions taken by the workplace. eNPS would fall into the employee sentiment category.

5. Business KPIs

Tracking business KPIs in conjunction with efforts to improve culture can also provide valuable insight. Work with your finance team for data like:

  • Customer retention rate
  • Customer satisfaction (Net Promoter Scores)
  • Revenues
  • Sales

While this data doesn't necessarily fall into one of the three categories in our framework, significant changes in business KPIs can indicate positive (or negative) culture changes, especially when layered with any initiatives you're working on to improve your culture.

"In tracking behaviors, you may uncover that your organizational values are not known or resonating with your workforce, and that might explain why your culture isn’t where you’d like it to be. In fact, most people don’t know their company values, much less how or where they apply."

6. Tracking Behaviors

While culture itself is challenging to measure, its outputs, or behaviors, can be tracked. Tracking the prevalence of the behaviors associated with your values can be a good indicator of your culture’s strength.

Using your desired value-based behaviors, you can create culture metrics for your organization. For example, if innovation is one of your values, and sharing ideas is an associated behavior, you can ask managers and team leads to report on the prevalence of innovative ideas being shared. Similarly, if accountability is a value, an associated behavior might be meeting deadlines. Again, ask your managers to report on whether deadlines are usually met.

In tracking behaviors, you may uncover that your organizational values are not known or resonating with your workforce, and that might explain why your culture isn’t where you’d like it to be. In fact, most people don’t know their company values, much less how or where they apply. In this case, you have two choices: work on better communicating your values to your team or revisit your values altogether. Evidently, this is an example of behavior data, but it can also provide valuable relationship data.

Tools like Kudos make it easy to reinforce and measure core values and behaviors/qualities, automating the process and housing it all in one place. More on that in the next section!

7. Kudos - Analytics and Insights

With Kudos Analytics, you can automatically measure key components of your culture like the value-based behaviors just discussed, the collaboration between people and departments, and contributions to morale through the recognition and appreciation messages shared on the Kudos platform. Rich and valuable behavioral and relationship data.

Kudos Analytics is built into the Kudos employee engagement and recognition platform, a hub for peer-to-peer recognition messages highlighting employee contributions. With Kudos, each recognition message is tied back to organizational values and behaviors.

The great thing about a system like Kudos is that new data is gathered regularly, allowing you to correlate how your team appreciates each other and interacts with one another, allowing you to connect that information to HR and Business KPIs.

With Kudos, you can measure:

Feedback: Kudos can help you gather direct feedback by embedding your current survey tool in Kudos and sharing the results.

Participation: Kudos is key to measuring participation based on activity in the system. Kudos can also be used to promote and appreciate those who participate and manage your culture events.

Anecdotes: Every message in Kudos provides valuable insights on the connections between employees as well as the effort, act, or accomplishments by individuals, groups, and departments. These messages often capture how people have moved the dial on business KPIs.

Behaviors: The often hard to capture details on what behaviors or qualities individuals demonstrate are captured in every Kudos recognition message. This helps you reinforce your core values but also measure how people live them every day.

Beyond the “moment in time” measures, Kudos Analytics also tracks trends over time, allowing you to discover any changes in behaviors or contributions, ranging from one employee going above and beyond regularly to a notable improvement in culture.

These dashboards can help managers understand the culture of their team and leaders the culture of the entire organization. Individuals can see their contributions, too, allowing them to self-correct if they aren't exhibiting enough desired qualities (behaviors.)

Sample from the Kudos Analytics Dashboard:

CultureBlog

Looking Ahead

The MIT and Glassdoor survey quoted earlier in this piece found that 90% of CEOs and CFOs who responded believe that improving corporate culture would increase their company’s value, with 80% ranking culture among the five most important factors driving their company’s valuation. Being able to show that you’ve made strides in building up your culture through measurement and metrics will not only help you understand which initiatives are working but also highlight HRs role as a strategic business partner.

Culture is vital to employee engagement and business success - understanding how you’re doing is the first step toward managing and building the culture of your dreams.

Kudos Can Help.

Kudos is an employee engagement, culture, and analytics platform, that harnesses the power of peer-to-peer recognition, values reinforcement, and open communication to help organizations boost employee engagement, reduce turnover, improve culture, and drive productivity and performance. Kudos uses unique proprietary methodologies to deliver essential people analytics on culture, performance, equity, and inclusion, providing organizations with deep insights and a clear understanding of their workforce. Book your demo today!

People Analytics

5 min

HR Analytics and Employee Engagement: What You Need to Know

HR Analytics and Employee Engagement: What You Need to Know

Today’s HR professionals and business leaders face unprecedented challenges in attracting, engaging, and retaining their people, and this challenge is expensive!

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Summary:

Employee engagement is more important than ever, and HR departments are making the shift to using People Analytics to make better decisions. Using robust People Analytics takes the guesswork out of measuring employee engagement; it helps create an optimal employee experience to reduce turnover, absenteeism and increase productivity. Simply put, measuring the employee experience motivates people to change at all levels. The "push to pull" shift from surveys to passive behavioural data collection gives HR, managers, and employees more accurate data to act upon.

Key Points:

  • Employees Engagement can pay significant dividends given the cost of labor and turnover.
  • Employers are turning to People Analytics to optimize their employee experience.
  • When HR professionals are working with accurate data on who their employees are, who they interact with, and what they value, it takes the guesswork out of HR decision-making.
  • The most effective People Analytics measures people’s interactions, behaviours, and sentiment over time.
  • People Analytics are shifting from “pull to push” where rather than actively collecting data, managers, and employees can see or are “pushed” actionable data in real-time.
  • If managers have accessible employee engagement and recognition data, they can improve business results by addressing any underlying problems and building on strengths.
  • If individual employees have access to analytics about their behaviours and contributions, they will be aware of their performance and be motivated to improve.

Today’s HR professionals and business leaders face unprecedented challenges in attracting, engaging, and retaining their people, and this challenge is expensive! On average, 50-60% of Fortune 500 companies' business spending is allocated to labor, including turnover, which is costing US companies 1 trillion dollars per year - the cost of replacing an individual employee alone can range from one-half to two times that employee's annual salary.

With those labor costs continuing to rise, the natural question for an organization to ask is, “how do we retain our talent?”

One way organizations are managing employee engagement is through human resources (HR) data and analytics.

HR writer and thought leader Josh Bersin defines HR Analytics, or People Analytics, as data that “allows organizations to understand the way they operate, improve productivity and performance, reduce turnover, and really make work better for people.” If People Analytics feels like uncharted territory for you, you aren’t alone; a survey of HR professionals found that just 9% of people feel that they have a “good understanding of the talent dimensions that drive performance,” and only 8% reported to have access to “useable data.”

Luckily, the space is becoming more and more accessible and user-friendly through simple dashboards that summarize data and make the information more digestible and actionable.

Most of today’s organizations use Human Resources Information Systems (HRIS) that allow for easy access to data on the length of the recruitment process, employee retention/turnover rates, and employee demographics. However, measuring employee engagement data is a much less common practice as the data has historically been more difficult to access beyond traditional surveys or anecdotal interviews – but change is coming.

Employee Engagement Analytics

Employee engagement has many sides. At the top of organizations, conversations surrounding organizational culture, employee engagement, and values are typically subjective and specific to the individual experience of the people in the room. This is not an intentional outcome from leaders, they are doing the best they can with the information they have, and People Analytics can provide them with more information.

People Analytics on employee engagement brings numbers and reports into those conversations, giving everyone in the organization a voice through the data. As an example, the leadership team may think that their values are representative or even understood by their workforce, but a simple report from their recognition system could show that what the employees’ values don’t align – timeliness might be valued over innovation, authenticity over professionalism, or creativity over productivity.

A piece in Harvard Business Review (HBR) suggests that using People Analytics makes human resources management more “deliberate and systematic,” which in turn leads to organizations becoming more effective by being “more evidence-based, talent-centric, and meritocratic.” When HR professionals are working with accurate data on who their employees are, who they interact with, and what they value, it takes the guesswork out of HR decision-making. Returning to the earlier example, if the organization’s values are not resonating with employees, it might be time to revisit them. Or, if there are inclusion issues, HR could run training on unconscious bias and diversity, equity, and inclusion to address these issues head-on.

So, how do organizations make that shift to People Analytics - and where does the data come from?

Historically, HR data was only collected through surveys. The problem with that approach is that surveys are just a snapshot in time and often do not tell the whole story. What’s more, many factors can affect a survey's results and the value of the results provided, including the quality of the questions, the respondents’ mood, the events on the day leading up to the survey, and more.

Still, surveys are effective at gauging employee sentiment (how employees feel about their role and organization) and can alert an organization to a need for deeper People Analytics if the results indicate poor engagement.

The most effective People Analytics measures people’s interactions, behaviours, and sentiment over time. One approach to measuring employee engagement with People Analytics is passive data collection that uncovers trends and actionable insights by analyzing how employees interact in communication systems like Slack, Teams, or Kudos.

This gives an understanding of culture and engagement that you would never get from a survey. For example, seeing firsthand which teams collaborate most often, least often, and if there are any communication siloes in your organization, to name a few. In short, behavioural and relational People Analytics gives data that more accurately reflects the true employee experience.

A study from Deloitte frames this as a shift from “pull to push” where rather than actively collecting data, managers and employees can see, or are “pushed,” actionable data in real-time.

How do HR Data and People Analytics Benefit Individual Employees?

The psychology behind why data tracking is effective in changing behaviour is simple. An article by Wired distilled it down to two factors: measurement and motivation. The piece also quoted Lord Kelvin’s famous saying, “If you cannot measure it, you cannot improve it.”

Stefan Olander, VP of Digital Sport at Nike, explains, "There's incredible power in knowing how you're doing,” he continues “it's inherently, incredibly motivational."

The same philosophy can be applied to People Analytics in an HR context. If managers have accessible data on employee turnover rates, absenteeism, and even the quantity and quality of recognition and gratitude they provide to their teams, the measurement will motivate them to improve their results by addressing any underlying problems and building on what’s working.

Similarly, if individual employees have access to analytics about their own behaviours and contributions, they will be aware of their performance and be motivated to improve. For example, if they know their company values and can see, through data provided by a platform like Kudos, how often they are recognized for displaying those values in their work and behaviours, they will see where their strengths lie. When employees know their strengths and are encouraged to build on them, they are more engaged and better contributors. A piece from Yale University explains:

“Employees have long focused on fixing weaknesses to increase chances of success. But recent research suggests that this long-standing advice may not be the best coaching. In fact, when leaders, teams, cultures, and individuals focus on strengths, they have a better chance at winning than if they focus on improving deficiencies.”

Looking ahead

Research shows that more than 70% of companies now consider People Analytics a high priority. How is your organization using people analytics to improve employee experience and engagement? If you think you could be doing better – reach out to the Kudos team for an enterprise strategy session today!

Kudos is an employee engagement, culture, and analytics platform, that harnesses the power of peer-to-peer recognition, values reinforcement, and open communication to help organizations boost employee engagement, reduce turnover, improve culture, and drive productivity and performance. Kudos uses unique proprietary methodologies to deliver essential people analytics on culture, performance, equity, and inclusion, providing organizations with deep insights and a clear understanding of their workforce. Book your demo today!

People Analytics

5 min

Four surefire ways to measure employee engagement

Four surefire ways to measure employee engagement

The best way to measure engagement is to create benchmarks against which to check your progress – or regress (hope not!). A great way to do that is through surveys.

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Is your team engaged?

By now, most HR pros and executives understand the importance of employee engagement. (If you’re a doubter or aren’t sure what we’re talking about, here’s a good overview on why engagement matters and even some tips on how to achieve it. Bottom line: employees that are truly engaged are more productive, make customers happier, and are less likely to leave their organizations.)

How do you measure engagement?  

The best way to measure engagement is to create benchmarks against which to check your progress – or regress (hope not!). A great way to do that is through surveys. (There’s also another way we’ll let you in on at the end of this blog.) Let’s look at three types of surveys.

Net Promoter Score

Simple. Fast. Powerful. The NPS® lets you know the overall mood of your team, which in turn will give you an idea of their level of engagement. Check the whole team or get snapshots of subgroups by department, location, etc. to see micro trends.

The NPS is based on the idea that every employee can be put in one of three categories: promoters, passives, and detractors.

You simply ask the question, “How likely is it that you would recommend [your company] to a friend or colleague as a great place to work.” It really gets to the point, doesn’t it?

Responses are measured on a 0-to-10 point rating scale:  

  • Promoters (9-10) are definitely on board. Count on them to go the extra mile.
  • Passives (7-8) are okay with things but not exactly pumped. You’ll get decent effort out of them.
  • Detractors (score 0-6) are unhappy employees. Their lack of buy-in and low effort could affect morale and actually damage your company. Look out!

Your NPS is the difference between the percentage of promoters and detractors (passives don’t factor into your score). The NPS is not a percentage; it is an absolute number between -100 and +100.

Here’s an example: if you have 30% promoters, 50% passives and 20% detractors, your  NPS is +10. (30 minus 20.)

What’s a good score? According to the creator of the NPS, Fred Reichheld, the average American company scores less than +10 on the NPS, while superstar employers get between +50 and +80. But these may vary a lot depending on your sector and other factors like culture. But remember, you are benchmarking, so what matters most is the change in your score over time – per month or quarter, for example.  

It is important to note that “Net Promoter” is a registered trademark of Fred Reichheld, Bain & Company and Satmetrix. If you do use the NPS in your engagement benchmarking, you should provide an acknowledgement in the small print.

Pulse Surveys

Fast. Frequent. More in-depth. An employee pulse survey asks simple questions of your team weekly or monthly. You get a quick take on the health of employee engagement at your company, hence the name 'pulse'. A pulse survey is more in-depth than the NPS, but still simple enough. You’ll get the most honest results if you make the survey anonymous (highly recommended!).  

You know this type of survey. You present a number of statements, and ask team members to rate their agreement on a scale: Strongly Disagree (1 point), Disagree (2), Neutral/Neither Agree or Disagree (3), Agree (4), Strongly Agree (5).

Pulse survey questions on employee engagement  

Here are the questions we use at Kudos to help us measure employee engagement. Of course, you can ask any questions you want. These are just the ones that work for us.

Leadership Questions – looking at how employees see senior leadership
  • Our senior leaders are committed to making our organization a great place to work.
  • I trust our senior leadership to lead the company to future success.
  • I believe our senior leaders are honest and trustworthy.
  • The leaders of this organization set a positive example.
  • Our senior leaders inspire me to do my best.
Purpose Questions – about vision, mission and values and how they relate to individuals
  • I have a good understanding of the mission and the goals of the organization.
  • I understand the importance of my role to the success of the company.
  • Our work environment is designed to help employees do their best work.
  • I find my job interesting and challenging.
  • I know what is expected of me at work.
Respect Questions – about an employee’s relationship with their immediate supervisor or their team  
  • I trust and respect my immediate supervisor.
  • My opinions and input are sought and seriously considered in decisions that affect me.
  • My manager values and regularly recognizes my contributions.
  • I have a close and trusting relationship with one or more of my coworkers.
  • If I contribute to the organization’s success, I know I will be recognized.
Opportunity Questions – about how an employee feels about their growth and career opportunities  
  • I see ways to grow and learn in my current role.
  • My job allows me to utilize my strengths.
  • My immediate manager cares about my development.
  • I see professional growth and career opportunities for myself in the organization.
  • The organization makes investments to make me more successful.

To get your overall score, just add the values of all the responses. Divide the total by the number of your employees to get an average per person score. Of course, you can also check your score against each subsection. Based on the responses, you‘ll get an idea of which areas you may need to make improvements in order to increase engagement.

Delivering NPS and pulse surveys

As for conducting an NPS or pulse survey, there are a variety of survey tools, such as Survey Monkey that make it easy to gather data. We will be including the NPS and pulse survey capabilities in Kudos in the near future. But don’t let that stop you from gathering the data now and sharing it with your team through Kudos.

Comprehensive Surveys

Need to dig deeper? If you find that the NPS and pulse surveys just scratch the surface on organizational employee engagement, try an in-depth annual survey. Search online and you’ll see that there are many organizations that specialize in workplace surveys. They can design, conduct, and prepare detailed reports with insights and actionable strategies to address issues.

P2P recognition: another way to measure engagement

Kudos, our online employee experience and culture platform, provides several ways to help you measure employee engagement. Everyone in your organization can see the Engagement Leaders module, which tells you your company’s top senders and receivers of Kudos. Your leaders with admin privileges can see a variety of data showing how individual employees, departments or the whole company are being recognized by their peers for demonstrating engagement-related values like collaboration, communication, passion and accountability, for example (you can set your own values with which to measure your team on). You can easily see and track this data over time, so benchmarking is a breeze.  

More important HR-related analytics    

Here are some handy links to using data to understand and manage your people better:

How to Use Employee Feedback for Business Growth

Are you missing out on the benefits of HR analytics?  

Make it happen!

Whether you use NPS, pulse or comprehensive surveys, or the many benchmarks in Kudos, make a commitment to stay on top of employee engagement in your organization. Looking for tips on how to improve engagement?  We have some great ideas here and here.            

Want to talk?

At Kudos, we help hundreds of companies around the world improve employee engagement. Talk to us (well, to our chatbot first – it’s down in the bottom right part of the screen and it's amazingly helpful), and we'll let you know more about our easy-to-use online tool and how we can help you!

People Analytics

5 min

Are You Missing out on the Benefits of HR Analytics?

Are You Missing out on the Benefits of HR Analytics?

Professionals like financial advisors and marketing managers track key analytics and data to make informed business decisions with the goal of moving their organizations forward.

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Professionals like financial advisors and marketing managers track key analytics and data to make informed business decisions with the goal of moving their organizations forward.

While the use of analytics is common for such roles, it has only been in recent years that HR professionals have been encouraged to harness analytics for themselves, yet HR teams haven’t been ignoring this growing trend. Leading companies have been investing resources and time into data management for years; the insights simply haven’t been used or applied by HR to their full potential. Today, there is a wealth of insights HR professionals can use to better understand crucial business operations and steps forward for organizational success.

Surprisingly, though, not every organization’s HR department will use analytics to help transform their workplace and achieve their objectives. In fact, as Deloitte found, only 26% of HR professionals report actually using analytics and data. The breadth of data and the challenges associated with implementing it means most HR teams won’t take advantage of key insights.

What can HR professionals do to ensure they don’t miss out on the benefits of analytics? And, further, how can HR teams better determine which analytics matter and how they can approach harnessing these insights?

Understanding common analytics types

When we think of HR data, what likely first comes to mind is people analytics. In its simplest form, people analytics refers to the application of employee insights and data to people management and decision making. With people analytics, insights can be both broad and specific, such as looking at demographics, skills, education, etc.

These analytics allow HR professionals to identify trends in their workforce behaviour and performance, then make informed decisions in relation to their organization. These and other analytics types all fall under the umbrella of HR analytics, which revolves around data like people, programme, and performance analytics. Let’s break these types down further.

People Analytics

These analytics look at data involving elements such as demographics, skills, and engagement.

Programme Analytics

With programme analytics, data can include absenteeism, participation in training and development initiatives, talent management, leadership programmes, etc.

Performance Analytics

Performance analytics look towards data such as talent assessment, achievements and goal attainment, onboarding programmes, and more.

Now that we understand the common analytics types, what’s next?

Determining which analytics matter most

Companies use analytics to extract in-depth insights into the health of their businesses, in turn enabling HR teams to grow more adaptive, agile and proactive. For example, 69% of companies either already have or are implementing a people analytics approach, while studies have revealed that 69% of companies with 10,000 or more employees have a proactive people analytics team.

That’s not all.

LinkedIn’s research discovered that 45% of large companies and 51% of mid-size companies are increasing their spending on HR technology and analytics.

Those stats are compelling, given that 58% of executives feel having better insight into talent could improve profitability, while 60% say it could help improve revenue per employee.

But how are these companies determining which analytics they need to focus on in order to drive success?

The first step is to identify your organizational objectives, then outline the questions that need to be answered in order to meet those objectives

Consider your existing objectives and pain points, for instance. You may have questions like…

  • Which areas of our organization’s practices or operations could use improvement?
  • What’s hurting our company the most right now (internally or externally)?
  • Which teams or departments require assistance?
  • Which of our top talent is at risk of leaving, and why?
  • How does our compensation model relate to our employees’ engagement and performance levels?
The next step involves collecting the data

This step is often where HR teams stumble, as collecting data and assessing it is made difficult by all of the tools and applications HR has to juggle in order to actually see and understand the data!

You may feel compelled to create a ‘warehouse’ or ‘database’ for all of the data and information you gather from your analytics, but such warehouses can become difficult to organize, costly to maintain, and overly time-consuming to analyze.

A better investment of time and resources would be to implement focused solutions with information that is valuable and actionable.

Within the Kudos application, for example, we developed an in-depth yet simple analytics dashboard that provides HR teams access to the insights they need without having to build out custom reporting or data warehouses.

Now, you can begin answering your most pressing questions

By using the data and applying it to your questions, you are better equipped to formulate solutions. The objective is to get specific - use the data you capture through analytics to answer your questions in detail.

Then, share the results (answers) with leadership and fellow HR professionals on your team

Leadership has to be made aware of where improvements can be made and how they can make better decisions for their company and people.

On that note...

Don’t forget to get leadership involved

More organizations are using analytics and insights to develop better approaches for talent recruitment and retention, developing deeper understandings as to what draws prospective employees to companies and what keeps them invested in their organization.

That’s probably why 71% of companies see analytics and data management as a high priority. Insights and analytics can and will continue to provide HR with valuable information they need to make strategic decisions.

Without leadership buy-in, however, employing analytics is virtually fruitless. That’s because HR teams can’t implement the benefits of analytics alone. Leadership has to support and advocate for the employment of analytics, just as they do for engagement or recognition!

In a recent study, Deloitte found that 21% of HR executives felt HR technology and analytics was one of the top three challenges their organizations faced when moving into 2019. What’s interesting about that stat is that, while analytics is one of the most prominent skills HR professionals want to learn and deploy, only 7% of companies feel their organization has ‘strong’ or sufficient people analytics and data capabilities.

It’s evident that HR professionals want to learn how to harness analytics and, moreover, want to proactively use analytics to improve decision making; they simply need the support and tools in order to do so.

Those tools and support in using them are crucial for the future of HR. The landscape of both HR and the global workforce has changed drastically, where four generations are in the workplace at the same time and remote plus contract work is beginning to dominate the mainstream workforce. By bridging the gap between analytics and HR, organizations may just see a significant turnaround.

The benefits of analytics are there, you may just be missing out!

One of the main responsibilities (and challenges) HR teams have is recruitment and retention.

Both are no easy feat, especially given the myriad of factors that impact successful recruitment, onboarding and retention!

When you consider the importance of retaining top talent, HR professionals have quite the weight on their shoulders. Take, for example, salaries. Employee compensation typically represents up to 80% of an organization’s budget, which means high attrition and turnover rates present a key problem and significant cost, two elements HR is often left to solve.

Analytics may just be a significant solution to mitigating such challenges.

McKinsey found that, by harnessing analytics as part of key decision making, organizations can experience up to an 80% increase in recruiting efficiency, paired with a 25% rise in business productivity and a 50% decrease in attrition rates.

Clearly, analytics is key for any retention strategy, and HR teams aren't ignorant of this fact. 17% of HR professionals who use analytics and data to address retention, culture, and diversity in the workplace also have backgrounds in market research and analytics!

Organizations that have an advanced capability in people analytics not only benefit from 30% higher stock prices, 56% higher profit margins, and a 79% higher return on equity but also financially outperform their peers.

It’s fair to say that analytics can be both a driver of retention and growth, as well as a tool critical to the success of HR teams. Indeed, those same teams can use data collected from analytics to discern whether their existing strategies are effective, and look for patterns that either negatively or positively impact their organization’s business processes! Analytics as a tool isn’t going anywhere, anytime soon. It is, in fact, only growing and continuing to evolve as HR further embraces the benefits of analytics.

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