3 insights your HR data should tell you-Reading time: 5 Minutes
Human Resources is a data driven industry. With so much company and employee information available, the challenge for many HR professionals is how to utilise it most effectively. No organisation can survive without data, and its importance within the overall business strategy only continues to grow as we enter a new decade.
In the recent 2019 annual Global Payroll Association survey, over half (51%) of respondents reported that they did not have the ability to report across all payroll operations. So, how can HR departments embrace and interpret their data, and what should they be looking for when they analyse it?
Cost analysis to make informed business decisions
This may seem to be stating the obvious, but do you know exactly how many employees you have working for you? For example, how many active and ended contracts do you have? Do you know how much your workforce is costing the organisation? It’s vital to have easy access to bottomline business information about operations. In fact, once utilised properly this data can be powerful for both the HR and payroll departments and the organisation as a whole.
Getting the basics right is important when making high-level and informed predictions about other aspects of the business. For example, with a clear understanding of month-on-month labour costs, it is possible to highlight any anomalies that may have arisen from unpredictable factors, such as employee absences or accidents. With more efficient ways of spotting spikes in costs, these can be minimised as much as possible, with HR and other departments swift to react and provide a solution.
Vital insight into preferred benefit packages
Employees are human beings - not just expendable business resources. Businesses need to have more of an understanding of how employees operate and how the organisation can best react to and support employee happiness and wellbeing. Whether it’s optimised onboarding or self-service HR, HR and payroll teams have a huge role to play in employee satisfaction and engagement.
This insight will inform the business which benefits employees are prioritising, who can then tailor their recruitment and onboarding packages accordingly to make the business more attractive to potential talent. For example, employee benefits can really impact employee happiness and wellbeing. A Flex Income Plan, can give employees the power to choose their own salary package - including cash salary, statutory benefits and fringe benefits - which fit their personal needs.
Holistic and Healthy Business Operations
The ability to pull consolidated reports on employee data from a single dashboard, and to see trends and predict based on existing data, means HR professionals can be quicker to spot anomalies, quicker to act on them, and quicker to solve them.
A single dashboard can be especially helpful to multinational organisations, as these trends can be tracked across large global workforces as well as drilled down to the local level to spot individual trends with specific teams and employees. Since an increasing amount of the workforce is changing from permanent to flexible and part-time roles, organisations need an end-to-end workforce approach that can give them a clearer view of the employment options and which departments are responsible for freelancers (e.g. procurement) and full-time staff (e.g. HR). This gives organisations a more holistic view of how healthy the business is as a whole and guarantees that HR teams have a seamless payroll experience in different countries.
With data giving HR teams 2020 vision within the organisation, employees will be happier and operations will be more efficient. The ability to look into the future with a new level of accuracy can ensure that the organisation is prepared for whatever this decade has in store for the European business landscape.
How HR analytics helps you work smarter
Already a key concern since the beginning of COVID-19, operational efficiency stays top of mind. A recent employer survey by SD Worx, showed that over half of European companies (55%) plan efficiency projects in 2021. Understandable, but don’t just concentrate on doing things right. Doing the right things is just as important. And HR analytics could well be the glue between efficiency and effectiveness. Check the opportunities in 3 HR domains.
How payroll reporting can power-up your staff planning
We often talk about how payroll technology can improve the efficiency of the HR and payroll department itself, but what about the efficiency of the organization as a whole? It’s vital that global organizations are run as efficiently as possible – however, this isn’t only the concern of the finance department in today’s data driven business landscape. With potentially easy access to a broad and detailed selection of employee data, the HR and payroll department can ensure that the organization’s staff planning is accurately informed to better control staffing costs and improve efficiency across the business as a whole.
The benefits of big data in HR and payroll
Big data and analytics have now entered numerous industries, including healthcare, financial services and retail. Despite many HR and payroll providers now using big data as part of their services, the industry has predominately been slow on the data uptake, in comparison to adoption within others. HR and payroll is largely an industry that relies on human intuition, rather than data and statistics, however, providers have started to see for themselves benefits of big data and analytics, and thus are beginning to implement these into their services.