It’s time to harness the power of HR data!
Making decisions based on gut instinct and outdated information can cost you thousands of dollars and limit your growth and success.
Concerns surrounding retention, employee engagement, productivity, and attracting top talent are a part of owning and operating a business. With the right data on hand, you’ll be able to understand what must be done to optimize your strategies and processes.
At Castle HR, we understand the challenges of hiring and retaining top talent, boosting employee engagement, and increasing productivity. That’s why we want to share the power of HR data with you.
By leveraging HR data, you can gain insights into your workforce that will enable you to make data-driven decisions, improve your business operations, and ultimately drive growth and success.
What is HR Data?
HR data is the information collected and analyzed by businesses to gain insights into their workforce. By identifying the appropriate data points, companies can understand the “hidden costs” of their workforce and take action to optimize their operations.
This data can include employee turnover rates, engagement levels, culture assessments, performance evaluations, productivity metrics, and diversity and inclusion data to employee net promoter scores (eNPS).
By collecting and analyzing HR data, businesses can identify trends, patterns, and potential problem areas within their workforce. This enables business leaders to make data-driven decisions based on factual evidence and take action to optimize their operations.
Forbes reported that 71% of executives see people analytics as a high priority for their organizations, and 92% believe it will significantly impact their business.
HR data can be collected in various ways, including surveys, Modern Performance Reviews, and employee databases. The data is then analyzed using software or tools to provide actionable insights.
By leveraging HR data, businesses can better understand their workforce, identify areas for improvement, and make informed decisions that drive growth and success.
Why Will You Love HR Data?
You will love HR data because companies that use data-driven insights in their people practices outperform their peers by 30% in revenue growth and profitability (Harvard Business Review).
Imagine the money you’d save (and what more you could achieve) if you didn’t make important decisions on a whim and instead focused on HR data.
When you utilize HR data to make decisions at your company, you’ll optimize your operations, consistently make the right choices, and find it easier to attract and retain top producers. Here are a few reasons why you’ll love HR data:
Identify hidden costs
Employee turnover, low engagement levels, and poor culture can all result in hidden costs for your business. By collecting and analyzing HR data, companies can identify these hidden costs and take action to mitigate them.
Optimize business operations
Businesses can optimize their operations by leveraging HR data and driving growth and success. HR data provides the insights needed to make informed decisions that benefit your business.
Discover hidden areas needing improvement
By measuring employee engagement, you can identify areas where your team may be struggling and take action to address those issues. This can lead to a more engaged and motivated workforce, which drives business success.
Review peer data
This can be particularly beneficial, as peer data relevant to your industry can help you understand the significance and context behind scores (for example, what scoring a ‘4 out of 5’ on a survey’ actually means).
At Castle HR, we provide our clients with data from 100+ companies to ensure they’ll understand what the numbers mean!
Make data-driven decisions
By leveraging HR data, businesses can better understand their workforce, identify areas for improvement, and make informed decisions that drive growth and success. Data can provide insights to make informed decisions based on concrete facts and figures.
Why Will Your Team Love HR Data?
Your team will love seeing the same data you used to make decisions at your business.
By leveraging HR data, you can align your team and leadership, use the data to answer questions quickly and let your team know when and why you’ll be making decisions that will impact them. Here are a few of the main reasons why your team will love HR data:
HR data can identify areas that employees need to improve on, and your team will love when you take action by providing accurate feedback and helping them tackle any issues.
Aligned with leaders
By measuring employee engagement and satisfaction, along with workplace trends, HR data can help improve communication between employees and management. This can also contribute to a more inclusive culture that encourages feedback.
Professional growth opportunities
HR data can identify areas where employees may need additional training or professional development opportunities, which can help them grow and advance in their careers.
Better performance evaluations
Using HR data to measure performance metrics makes performance evaluations fair and more objective. This can help boost morale and motivation!
What Else Do You Need To Know About HR Data?
Here are a few common questions we get about HR data:
What kind of HR data should my business be collecting?
This depends on your business’s needs, but common HR data points include employee turnover rates, engagement levels, culture assessments, performance evaluations, and more.
How can my business collect and analyze HR data?
Many tools and software are available to help businesses collect and analyze HR data, including HR management systems and HRIS.
How will HR Data save me time and money?
With HR data, you’ll save ample time and money because you’ll be able to identify hidden costs and areas needing improvement (and address them) and make data-driven decisions. As we stated earlier, studies have shown a notable profit increase in businesses that incorporate such data into their decision-making processes.
When you utilize HR Data to make decisions at your company, you’ll optimize your operations, consistently make the right choices, and find it easier to attract and retain top producers.
How can HR data improve things like engagement and inclusion in the workplace?
HR data can help businesses identify diversity and inclusion gaps and areas where employees require improvement in their workforce. From there, business leaders can implement and track progress toward more diverse and inclusive hiring practices and/or better engagement and growth strategies.
By collecting data (including employee feedback), businesses can create strategies to promote engagement, growth, diversity and inclusion.
What are the challenges of using HR data?
One of the challenges of using HR data is ensuring that the data collected is accurate and reliable. There may also be challenges in analyzing and interpreting the data, particularly if businesses lack the necessary tools or expertise – that’s one of the many ways working with a Senior HR Professional at Castle HR can help you.
Additionally, privacy and data protection concerns may exist when collecting sensitive employee information. It’s essential to have clear policies and procedures to address these challenges and ensure that HR data is used ethically and effectively.
How can Castle HR help with HR Data?
At Castle HR, we’re a team of Senior HR Professionals who have seen data collection and data-driven decisions’ impact on growing businesses.
Having peer data on hand allows for context behind the numbers – and helps our clients understand what their survey scores and other figures really mean. That is why we share peer data from 100+ companies with each of our clients! We’re here to help you understand the best methods for acquiring data for your business and assist you in developing an action plan to analyze the data and insights you collect and make decisions based on the information you have at your fingertips.