The Impact of Analytics on Workforce Planning

Data is critical to HR. This is because it allows professionals to make better, more informed decisions. The more precise the data, the more effective the results become. Data highlights trends and patterns. From these, it is possible to create new policies, rules, and responses to existing issues. With time, this process sharpens the workforce. Here is what else good data does for a company when used correctly:

• Finds areas for training and employee development.
• Streamlines the hiring process, reducing the time and financial investment.
• Improves employee satisfaction and retention.
• Keeps organizations more competitive.
• Removes organizational weak points, reduces friction, and streamlines workflows.

Pay data

Pay data is one of the main components of compensation planning. Professionals can use it to create compensation that is both internally fair and externally competitive. Internally, this data can find areas of potential bias, such as gender or racial pay gaps. Once found, these issues are solvable.

Pay data can ensure that the organization holds to its policies and initiatives around equal pay. However, it influences more than just internal company policies on fairness. It is also critical for staying compliant with new transparency laws.

Pay data is a crucial element of building a workforce. This is because it is one of the biggest factors in both hiring and retainment. For example, without pay data, an organization cannot be competitive. This is a dangerous long-term situation for a company to be in. If salaries are lower than market rates, it will be difficult to grow (or even support) a motivated organization. If the compensation is too high, salaries are unequal, damaging both corporate image and company morale.

It is also an essential element in understanding the trajectory of a company. An optimized, cost-effective plan backed by sound data is necessary for a company to effectively strategize.

There are multiple ways to get data. For example, consultancy, or industry surveys, employee feedback. Internal self-made and completed surveys give useful information on the culture of an organization. External, industry-wide ones keep it competitive. They give the broadest, deepest understanding possible of the industry.

They are effective for evaluating compensation and provide insights listed by geography, job title, new hires, and company size. Industry surveys are comprehensive. However, users must be diligent when buying survey data. Incorrect data sets or ones from a questionable source undermines the entire process.

Employee engagement data

This type of data shows how satisfied and involved the workforce is. The goal is always to have the highest engagement possible. Individuals should be enthusiastic about the company. They should feel as though their organization values and respects them. Crucially, their interests need to align with those of their organization.

The alternative is to have a workforce made up of uninterested, unmotivated employees. This is ineffective for a list of reasons:

• Disengaged employees are more likely to leave. It will also be harder to find replacements.
• The corporate identity and brand power will be weaker.
• This will contribute to further disengagement, and an unwillingness to do extra work when needed.

Employee feedback is one of the most reliable methods of gathering data. The goal is to ask only the necessary questions, keeping the process as concise and easy as possible. Minimize topics. For example, the survey may be entirely benefits-based. This will enable HR teams to get the highest quality, most relevant information in the shortest number of questions.

A successful survey gives a snapshot of the workforce at that moment. However, continual data gathering gives a much higher level of detail. This allows discovery of deeper trends. It allows the creation of more effective responses to the issues that an organization faces. With this, it will be easier to respond to organizational issues. It will also be easier to refine employee workflows.

Employee culture data

This type of data does have a crossover with the earlier section, however there are key differences. Engagement surveys focus on the individual. Culture surveys focus on the work environment, and corporate identity.

This data relates to the sentiment of the company. What is more, it takes data from those that are in the best position to give it. Employees can give insights into the values of the company from a unique perspective. As a result, they will have important insights into public feelings about the organization. They may have spotted their own trends and patterns and simply need an opportunity to bring this to someone’s attention.

Culture surveys often have more open-ended questions. For example, “How could the workplace be improved?” Or “Do you feel that you are compensated fairly for your work?” Doing these surveys anonymously is preferable. This is because employees may feel that the information they share could result in punishment. This will lead to self-censorship, and lower quality data.

It is important to keep employees in the loop when updating them on the findings from surveys. Ensure they are aware of the results and intended actions.

These surveys put the focus on improving workforce morale. When done on an ongoing basis, they can strengthen the culture of the organization.

Analytics and the workforce

When gathering data in your organization, follow these tips:

1. Start small. Pick a team or department in your organization to start. Use this opportunity to tweak your methods and processes before scaling up.
2. Ensure internal support. It is important that those that will be involved understand the “why” behind it.
3. Be specific. There should be a clear purpose behind each metric. If it is not of benefit, do not include it.
4. Have compatible tools. Do research to find and use the best programs available. Consider an all-in-one choice where possible to minimize friction points.
5. Evaluate. After finishing the process, reflect. What went wrong? What went well? What will be different next time?