What Is Workforce Analytics?

Workforce analytics provides a way to measure the performance and productivity of an organization’s workforce, while also providing insights into possible trends that can help improve employee engagement. The usefulness of this technology extends beyond just measuring output; it is also capable of being used in areas such as time management or identifying employees who are likely to leave.

Workforce analytics refers to the use of data and statistics to predict workforce trends. Examples of workforce analytics include predicting employee attrition, identifying skills gaps in the market, and measuring productivity. Read more in detail here: workforce analytics examples.

Workforce analytics is a collection of software tools, procedures, and approaches that companies employ to collect and analyze data about how they operate. It’s also utilized to figure out how much of an influence it has on ROI (ROI). Workforce analytics may help you better analyze employee engagement, behavior, and general work processes so you can run your business more effectively. Technology has made it simpler than ever to collect and process huge data, making it easier for managers to make fact-based choices for their businesses.

What if I told you that

Although they are related, workforce analytics and HR analytics are not the same. People data is the primary focus of workforce analytics (though there is a growing trend to include robotic workers in these assessments). HR analytics encompasses a wide range of topics, including processes, operations, and strategies.

Workforce Analytics: What Are They and How Do They Work?

The goal of any workforce analytics is to find problems. Many people have ideas on how to proceed. They may be classified into the following kinds based on their aim and final goal: Descriptive, Predictive, Prescriptive, and Diagnostic are all terms used to describe how something works.

Although the question may involve more than one solution, knowing the sort of analytics you want may assist identify the issue. They’re used to answer the query, “Why do our staff quit after four to seven years?” in this case.

Descriptive

This information allows you to gain a comprehensive picture of your workers’ present situation or to comprehend a previous occurrence. A corporation with a high turnover rate, for example, may conduct a poll of departing workers to determine the reasons of unhappiness.

Exit surveys, for example, may reveal that workers departing after four to seven years want promotions or increases. The company’s increase schedule and promotion processes may need to be reviewed.

Predictive

Based on current and historical data, this analysis may help you predict future results. For example, a corporation may do analytics on its sales staff to find the characteristics of successful salespeople. They may use this information in their hiring and interviewing procedures.

Extroverts are more likely to depart the organization, according to personality tests and performance records of those who remain vs. those who leave. As a result, they may seek to provide greater possibilities for contact and engagement among middle managers—or they may want to hire introverts exclusively.

Prescriptive

Businesses utilize this information to make better decisions based on previous experiences. For example, a firm with a busy season may discover that hiring a temporary worker is more cost-effective than adding hours to the schedules of existing workers.

A lifestyle questionnaire suggests that the majority of employees departing are young families who no longer fit the company’s long-hours, work-hard-play-hard mentality, and that a cultural change is required to retain these people.

Diagnostic

This kind is used to solve particular issues by identifying the root cause and recommending a plan of action. For example, a firm with a high turnover rate may utilize workforce analytics to figure out whether the issue is related to compensation, company regulations, supervisors, or the office culture.

Example: According to a poll of workers who stay with the firm for four to seven years and previous employees who departed during that period, the No. 1 complaint is growing workload without corresponding remuneration or assistance. Job descriptions and duties may be altered by the firm.

Workforce analysis software in action. It may keep track of a variety of parameters, such as overtime hours, labor expenditures, and pay code hours. (Image courtesy of Worforcesoftware.com)

Taking Advantage of Workforce Analytics

It’s simple to gather worker data on a regular basis using today’s labor management software. Furthermore, certain HRIS systems, payroll services, and PEO programs provide employee survey data, which businesses may utilize every month to assess employee satisfaction. Notes from hiring interviews, exit surveys, and performance reviews are all good sources of continuous data for workforce analytics.

However, you should have a clear strategy in mind while using this information.

Begin with a question.

Begin with a clear understanding of the issue you’re trying to solve and how you plan to solve it. Don’t be vague: The phrase “causes of employee unhappiness” is fairly broad. The question “Why do workers quit after four to seven years?” helps you concentrate.

Decide what information you need.

Concentrate on details, just like you did with the inquiry. You’re seeking for information that you can use to make a business choice. You should also think about what kind of data you can collect.

The kind of analytics you do depends on how you frame the inquiry. Consider the following scenario:

• What makes them leave? Interviews and exit polls
• What can we do to keep them from leaving? a detailed questionnaire
• After four years, what sort of workers leave? Notes from the interview, personality tests, and comments from the manager
• Is it possible to boost retention by doing X? Investigating who received the questioned training, assistance, or advancements, as well as whether or not they stayed with the organization.

Establish the Benchmark Questions and Objectives

Decide on your benchmark questions to aid in the collection of data for your ultimate aim. If your aim is to promote staff retention, for example, you can inquire if a certain activity aids retention. Is it a minimum percentage rise or a flexible schedule that motivates workers to stay?

It may also refer to a certain quantity or percentage of responses, as well as the many metrics you employ: For instance, under the bigger topic of “Why do workers leave?” your benchmarks may contain particular lifestyle markers such as having a new kid or finishing an advanced degree, employee happiness at the time of leaving, performance criteria, and even personality types.

Knowing your limitations might also assist you in establishing standards. Whether you can’t afford to relocate your office or provide full-time telecommuting, asking if they enjoy the location won’t help. You might, however, inquire about the commute, since you may be able to solve it with commuter perks or occasional work from home possibilities.

Check out our list of the most essential HR metrics to discover more about some of the most prevalent HR workforce data points. How you’ll utilize them is determined by your workforce analytics system.

Decide How to Examine

You may decide how to obtain and evaluate your data after you’ve established your question, information requirements, and benchmarks. Conducting surveys and analyzing existing data, like as performance evaluations and training records, are the most typical methods. However, resumes, personality tests, and even social media may provide a wealth of useful information.

“Why do workers depart after four years?” is one example. You can choose to employ a broad emphasis, analyzing data from a given year from recruiting through dismissal and then applying it.

• Who remained was affected by their personality—how effectively was this factor evaluated throughout the recruiting process?
• Opportunity was cited as a concern in exit surveys; was advancement or training handled while employed? (For example, you could discover that workers who filed this complaint did not use the learning center or had a history of poor performance.)
• Those who left had established new families—how much does a single person’s health insurance cost compared to a family’s? Is the corporate culture one that encourages long hours, weekends, and making the workplace a social as well as a work hub?

Analytics with HR and Workforce Management Software

Employees management software, HR software, and even payroll software can help you collect data in real time and analyze your workforce. Some instances are as follows:

• Keep track of key performance metrics and organizational objectives to understand what factors impact their achievement.
• To find out whether more training helps with retention, look at training and learning center use records.
• Examine schedules vs. sales to examine whether there’s a link between the duration of an employee’s shift and the amount of sales they make.
• Run periodic informal polls to measure workplace wellness using the survey feature in your program or a communication platform like Slack.
• To identify flags and patterns, use keyword searches in chat software or workplace emails. Alternatively, do keyword searches on your present workforce’s resumes to identify the most frequent attributes or experience among your top workers.
• Examine the absences to see if there are any commonalities—is it a particular department? Manager? When is it (not just the season, but the ebb and flow of your company)?
• Begin succession planning by identifying persons who can fill responsibilities left vacant by someone who is promoted or fired.
• Analyze employee strengths and weaknesses to put together the optimal blend of skill and personality for each shift.

HR analytics is a form of workforce analytics (Source: Workday.com)

Workforce Analytics’ Advantages

Workforce analytics may aid in the implementation of meaningful improvements. They are an investment, but they will save you time, money, and problems in the long run. For example, the Workforce Institute’s 2017 Retention Report indicated that 75 percent of causes for employee turnover are avoidable, and that replacing an employee costs approximately 33 percent of their yearly compensation. Here are some examples of how analytics may assist.

• Improving Hiring: How do you know who the greatest people are for your company, and what should you look for while recruiting and interviewing them? What perks and company culture entice the best-fit candidates? In terms of talent, what forthcoming organizational changes do you need to prepare for right now?
• Managing Employees: What characteristics do high-performers have, and how can managers support them? What motivates high-achievers to stay with the company? What is the relationship between training and results? What corporate policies have resulted in better results? What variables influence absenteeism?
• Organizing Roles: Are there any jobs that are redundant? Do you need replacements? (For example, three workers may be working on various areas of a job and getting in each other’s way.) You might reassign the project to one person, either a current employee or a new recruit.)
• Employee Engagement: What policies have an overall impact on employee satisfaction? How can the workplace culture be improved to foster collaboration? Do you need a tool to help your employees communicate more effectively? How can you maintain a positive attitude during tough times?
• How Healthy Is Your Work Culture When It Comes to Reducing Employee Churn? Do you have a high turnover of employees? When and why?

Workforce Analytics: What to Think About When Collecting and Applying Data

A solid workforce study may help you save money, but it costs money to get started. Keep these things in mind when you create your analysis to get the most out of your money.

Employee Involvement

Employees must support your efforts in order to get the greatest outcomes, whether they are participating in data collection or adopting changes as a consequence of the research. The best strategy is to understand how the analysis will help them up front and to explain it clearly and enthusiastically.

Transparency

Be transparent about the process in addition to being explicit about the advantages. You don’t have to provide all the specifics, but you should address any worries about privacy or GDPR requirements. Also, be prepared to answer inquiries. This not only aids in buy-in, but also ensures that you remain compliant.

Productivity

This may seem self-evident, given that the purpose of any workforce analytics program is to increase workplace productivity. However, rather than increasing people or roles, the tendency is to focus on ways to boost internal efficiency.

Data in Real-Time

Not all workforce analytics initiatives need a substantial amount of effort or research. Check what data is instantly accessible to you before requesting a research. If it is unable to answer your query, it may be able to assist you in refining your research.

Teams vs. Individuals

Workforce analytics may appear to imply examining employee data, but the same methods can be applied to teams, revealing why some are more effective, determining the best team composition for a project, and determining whether you should have permanent teams or have employees come together only for specific purposes.

Conclusion

Workforce analytics employs data obtained from surveys and mined from personnel records to assist you in making educated choices about recruiting, managing, and retaining employees. It’s not difficult to develop and conduct studies to answer important questions about how to operate your business better, particularly for organizations that use HR or workforce management software.

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