HR managers have experienced challenges in an attempt to make sound people decisions within their organizations. It has always been daunting to acquire information and to get metrics about the cost per hire, employee engagement, gender pay equity, and significant turnover rates in critical positions.
Although some small and medium-sized businesses are still struggling with these challenges, others have invested in sophisticated, cloud-based tools and software to streamline their operations. Such tools allow HR managers to utilize people data effectively to support their business decisions.
Today, companies are emphasizing talent quality more than talent costs. The changes in how the C-suite views the workplace are triggered by a renewed focus on people analytics in HR.
Here’s what you need to know about people analytics software and how they are changing the HR game.
What are people analytics tools and software?
People analytic software helps HR managers gather people data, including workforce composition, diversity, gender pay equity and cost per hire, in a streamlined and effective way.
The software allows HR to explore causation and correlation and make data-driven decisions on progress or adjustments.
Furthermore, HR can use insights gathered and visualized by the people analytics software to transform business operations, HR best practices, and the HR-employee relationship.
People analytics options expand
Today, HR professionals have access to cutting-edge cloud-based people analytics software. The evolution of this software has given rise to a competitive marketplace.
However, companies have the chance to decide how they want their people analytics software — either build their own in-house or use embedded tools from a stand-alone provider.
Sometimes, the biggest concern is whether the companies are willing to pay for the people analytics HR software tools.
HR functions that utilize a variety of software tools get the most value from the analytics dynamism. Therefore, organizations looking to generate significant returns on technology investments should ensure that data entered into their systems is accurate and timely.
Additionally, the HR staff operating the tools and systems should have adequate skills and analytic experience. The decision-makers must have access to the insights to make informed decisions based on the data.
But despite the technological advancements, organizations are still struggling to bring out timely and accurate insights from their people data. Such companies should utilize people analytics HR software to eliminate these challenges.
Dealing with data access and security issues
Data security is a significant concern for most HR professionals regarding people analytics. Unfortunately, traditional processes for people analytics expose sensitive data to security risks. This is because the approaches involve transferring sensitive workforce data from HR systems to spreadsheets or data visualization tools for analysis.
But with people analytics software, you don’t have to take sensitive data out of your HR system and expose it to security risks. Instead, you place your external data into the vendor’s systems for reporting and analytics. Your data is encrypted and only accessible to authorized users.
It’s worth noting that today, companies should be concerned about people who view, create, or share reports about people data.
However, people analytics software comes with safety features, including an authorization process that provides control of the display while allowing you to modify the authorization of people data.
Beyond standard metrics
People analytics HR software has become more sophisticated, versatile and user-friendly, triggering an expansion of metrics that HR leaders track and report. Metrics that have grown beyond traditional measures include employee headcount and turnover data.
There’s a growing interest in using people analytics software to measure areas like worker overtime trends and the progression of diversity and inclusion initiatives.
Conclusion
People analytics HR software aims to solve the popular struggles and obstacles HR teams face while making people decisions based on their analytics. And now that the focus is on quality talent and not the usual talent cost, companies will have to invest in people analytics tools for tracking and reporting analytics while securing sensitive workforce data.
If you’re looking for ways to manage your employees, use our HCM software to manage your workforce and HR processes. Contact us to get a quote.
