How HR Can Harness the Full Potential of Employee Data
Human resources professionals at organizations around the world are increasingly seen as strategic business partners. They are taking an active role in achieving company goals, which include maximizing profitability, mastering compliance, boosting efficiency, supporting growth and spawning innovation.
For HR to reach these milestones, they must do more than interact with their employees on a personal basis. They also need to seek out and explore their employee data through employee data management.
Why Utilize Employee Data Management?
Employee data management involves analyzing employee data to make key business decisions. It's a critical component of transformational HR, a practice where HR professionals align their processes and goals with their company's objectives.
This type of strategic HR will not only give HR professionals a better glimpse into their employees. It will also allow them to make smarter decisions in terms of hiring, headcount reporting, succession planning, recruiting, development and engagement. Once they get a clear view of their employees' data, HR can help their companies improve their return on investment and decrease spending where necessary.
Employee data has the power to revolutionize how companies function, as well as save and increase revenue. According to the Wall Street Journal, when Xerox analyzed employee data, it was able to reduce its attrition rate by 20 percent. This could save a lot of money in the long-run, considering the investment required to successfully onboard and train employees: A survey by The Association for Talent Development revealed that organizations spend an average of $1,208 training and developing every employee. If HR can see which training and development practices are effective and ineffective, they can save their companies time, energy and resources.
It's clear that employee data management is crucial for HR professionals. They just need to figure out where to store this data and how to use it.
How Can HR Stock and Analyze Data?
HR professionals no longer have to keep employee data and information in Excel spreadsheets, Google docs or in filing cabinets. They can now input all the employee data into a Human Resources Information System, or HRIS. An HRIS can be set up in as little as a few weeks, and completely revolutionize the way that HR functions.
When it's first installed, an HRIS will sync up with any legacy systems HR professionals have in place and seamlessly transfer over employee data. HR teams as well as employees can quickly learn the technology because it is user intuitive.
Human resources information systems have found to be highly effective among HR professionals. According to a study by David Publishing, more than 70 percent of HR workers said that an HRIS helped them to store, gather and analyze HR information. Additionally, nearly 80 percent reported that an HRIS increased their administrative efficiency, and 76 percent said that HRIS is beneficial when it comes to “staff planning, identifying and retaining employee capabilities."
An HRIS will visualize the data and identify the top performers at the company. It will show HR exactly who is on the way to becoming a company leader so that HR can help guide these individuals on their path to success.
HR software also allows HR professionals to plan ahead. They can predict when they will need to fill gaps in their workforce, see any unnecessary expenses and report them to the company leaders, identify which training practices are working, and much more. With this type of knowledge, HR professionals can deliver valuable insight to the company's leaders and show them exactly how to get ahead.
Ready to dig into the data? Learn more about how to transform HR into a data-driven department with Cornerstone HR and Cornerstone View.