Why Do You Need HR Reporting and Analytics For Your Company
HR reporting and analytics are an indispensable part of any company’s HR department. As a part of HR management skills, a smart HR manager knows how to deal with this modern approach and apply it strategically.
HR analytics is a data-driven approach to managing people at workGal, Jensen & Stein, 2017
Both reporting & analytics have a close relationship with each other. If reporting helps to keep track of metrics, analytics focuses on the larger picture taking help from those metrics. And these metrics are all about data that helps HR professionals to make – better decisions on different HR-related facts.
It says that from the recruitment to the onboarding process, from their salary management to ensure benefits, data helps HR managers perform these activities without making any mishap. That means whether you’re managing a smaller group of people or just a larger one, data will always come to assist you in finding out what’s going on in the workforce or how to deploy resources and make organizational decisions properly.
So, in today’s post, we’ll briefly talk about some of the significant facts regarding HR reporting & analytics. We hope that this will help you know about its basic functions & the importance of utilizing it for business to thrive.
But before we get started with the importance let’s begin with the basic question.
What is HR Reporting and Analytics?
HR reporting mainly refers to a process to analyze & compare many critical metrics about the workforce. It includes full-time versus part-time workers, workforce gender ratios, employee turnover, open jobs, hiring new candidates, etc.
In this fast and competitive business world, you as an HR manager must have the proper reporting skills to figure out what’s going around in your organization. From monitoring each employee to ensuring a good workspace, you need skills and a good HR management mindset.
Tracking key attributes of your workforce can help your leadership team make important decisions about your businessPatrick Proctor, Assistant at Robert H. Smith
That’s why HR reporting is entirely a critical component that every HR manager should adopt right away. It helps to control each part of the HR department to take your business to the next level. Continuously observing employee’s performance report can help identify areas of improvement within the organization.
What is HR Analytics
While talking about HR reporting skills, analytics is also a significant part that boosts reporting process by giving a crystal precise dimension. It’s a systematic way to identify and measure the impact of the HR metrics on overall business performance. If reports help to organize data, proper analysis helps to make data-driven decisions.
HR analytics, referred to as people analytics, workforce analytics, or talent analytics, involves gathering together, analyzing, and reporting HR dataErik van Vulpen, Expert in modern HR practices
The statement shows that analytics is all about data and its perfect execution. Reporting helps to visualize them to figure out gaps, missing facts, and the scope of improvement. The ever-changing nature of Human Resource Management has shifted from the traditional one to a more strategic one. Reporting and & analytics are a core part of this strategy.
Check out the below article that explains how HR management report helps to make better decisions for the business:
Related Article: How HR Management Report Help You Take Better Business Decisions
Why Should You Use HR Reporting & Analytics – 7 Top Reasons
Generally, analytics is a potential element for any sector of a business. We already discussed that HR report & analytics is necessary to collect data and draw a picture of your HR department. A professional HR knows very well that employees are mainly responsible for a company’s growth and progress.
Apart from preparing reports and perform other crucial activities, there are many more reasons that you should know. Here we’ll share the seven most effective causes of using HR reporting and analytics for business. Let’s check out step-by-step:
01. Make Well-informed Hiring Decision
Hiring the most talented person for a company is the first and foremost task for HR admins. Sometimes it seems to be tough to find the right people at the right time. After getting access to all your previous reports & analytics, it will be easier for you to make the right candidate from past hires records.
Let’s say you want to hire developers with five years of experience in a developer post. After getting the applicants’ resumes in hand, you observe that most of them have under five years of experience in that particular post. Therefore, by examining the reports & previous analytics, you can conclude by modifying the job requirements criteria.
02. Implement New Things to Your Hiring Process
Most companies don’t have a precise recruitment process, and it seems to be inconstant. The main reason behind this – lack of proper data management. Knowing how to utilize past hiring data could reshape your entire recruitment process and filter out the right people for your organization.
Therefore, regardless of the size of your business, data will come to support you in every case because it helps you view the past hiring needs and prepare the report in time. So whenever you’re called upon to hire the candidates, you have data in hand and a precise hiring process. These will help you to find out the best people for your company efficiently. Also, there will be enough space & time to implement new things in your existing hiring process.
03. Provides Your Employee Turnover Reasons, Ways to Solve Them
We already know that data can deliver insightful information about anything especially if you’re managing your HR department. Even it can give you who is performing well, their executions and contributions, etc.
But did you know?
80% of all employee turnover is a result of poor hiring decisionsBuilt In
It’s such alarming news for any company. A flawed HR management system and lack of proper knowledge to analyze data could drive your company to hire inappropriate people. However, sometimes turnover may be unpredictable. But if you closely look for the reasons by taking help from previous data & reports, you can figure it out.
Generally, employees always look for better opportunities, pay & benefits. And that’s okay because it’s human nature. So if you have data and reports in hand, you can identify “star” employees from average employees and ensure you proactively work to retain them and make them feel valued.
04. Tracks Employee Performance & Ensure Maximum Output
With report & analytics, you can track your preferred employee’s performance. It lets you review their overall performances, feedbacks, and actions over their work time. You can filer it quarter-wise for your convenience. It will be easier for you to determine whether s/he is a rockstar performer or just an average one.
Based on their performance, you can offer increments, give promotions, provide additional training or performance bonus, etc. It will encourage employees to perform like a rockstar which leads to profitability.
Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled.Anne M. Mulcahy – former CEO of Xerox
Therefore, you need to ensure a world-class work environment with 100% employee satisfaction.
05. Helps to Find Reasons of Your Employee Unhappiness
Like we said earlier, if your employees are not satisfied, your business will no longer progress. As an HR admin, you must interact with each employee to ensure whether they’re feeling good or facing any obstacles. For instance, you can talk to them, consult them to ensure they are happy with your policy.
However, with traditional HR policy, it may not be easy to find out the root causes of issues in the workplace. You may even think that employees will come to you when they face any problem. But that doesn’t happen all the time. In this case, you need to go one by one and fix their issue.
Don’t worry! HR reports & analytics is right there to sort out all the probable reasons for their grief. You can create a survey and ask your employee to put their issues, suggestions, feedback on the HR policy, or even if they’re not happy, etc. And then collect them in a spreadsheet or through HR software. Finally, take action to resolve issues or internal conflicts.
06. Manages Your Employee Compensation
Another tough and challenging task that HR admins have to deal with is – managing employees’ wages. You must have to ensure all employees are being paid according to their expectations. That means you have to maintain a proper balance and give what they deserve.
In this crucial case, HR analytics could help you act smartly. You can view employees’ pay scales, current benefits, work time, other compensations. And then compare previous reports to present employee performances, costings, and other circumstances. Lastly, make the final call on increments or adding other deserving benefits.
07. Helps To Make Strategic Decisions for Business Growth
Apart from giving excellent employee management facilities, HR reporting & analytics is also helpful to make strategic decisions for the business. It might help your company grow with payment management, a first-class work environment, or ensuring paperless work facilities, etc.
With these so many advantages and use cases, it is wise to employ HR reporting and analytics in every company. You can invest a considerable amount in reporting & data analysis to improve the HR functions and benefits of your business.
How WP ERP HR Module Helps to Analyze and Prepare Essential HR Management Related Reports
To get started utilizing an HR reporting & analytics feature, you can certainly do that from available free solutions in the WordPress ecosystem. Instead of using spreadsheets or hand-made paper, these human resource information systems are fast, accurate, easy to use & integrate, and error-free.
Like all the available HR solutions in the market, WP ERP is one of the top-notch solutions that regulates all HR-related functions with its Human resource module. So we’ll share some of the most remarkable features of the WP ERP HR Module that helps you to analyze & prepare HR management information reports for your business.
Using the Recruitment feature you can publish job posts and manage the entire recruitment process right from your WordPress dashboard. And the reporting system shows you all essential details about your job openings and candidates at a glance.
The payroll feature enables you to manage your employees’ salaries. Such as pay calendars, pays runs, and finalize the pay run. You can also generate useful reports to take important business decisions regarding employee salary.
It is an automated training system for WordPress users to increase the productivity of employees within the company. You can assign training sessions department-wise or arrange a session for your low-performing employees so that they can get themselves motivated. Finally, you can check employee’s completed, current, or upcoming training always to stay updated.
04. Document Manager
Store and organize your office documents and share them with the managers with this smart file-sharing feature. Also, you can search for the preferred file whenever you want, apply privacy to your important one.
The attendance feature helps you to fully manage the attendance system of your company. You can enable an auto check-in and check-out feature that helps to prepare attendance reports. Also, you can import-export data, create shifts, restrict IP, and get a full overview of your employee’s attendance.
06. Import-Export Data
Data is the most valuable thing that helps to make decisions. So with the WP ERP HR module, you can import-export your essential data whenever you want. Here you can import-export employees details, designation, department, compensation details, etc.
Check out more WP ERP HR Extensions here…
Using these HR reporting tools of the WP ERP HR module, you can easily handle your HR department and uplift your business growth to the next level.
Some FAQ Regarding HR Analytics & Report Management
Ans: Reporting is the process of organizing data to a summary of how various parts of the business are performing. And analytics helps to explore data and reports to sort out different meaningful insights.
Ans: 01. Zenefits, 02. WP ERP HRM, 03. Bamboo HR 04. Zoho People, 05. Breezy HR, etc.
Ans: There are several types of HR reports that you can wish to analyze. Such as attendance & absent reports, recruitment reports, turnover & retention reports, performance management reports, training & development reports, and so on.
Ans: Analytics is a combination of the two terms ‘analysis & statistics’. Taking help from statistics analytics gives you a data-driven result.
Ans: It’s an ability to create, read, and execute HR reports using data that drives from various Human resource information systems.
In this digital age, you’ll always need new and innovative ideas to boost your company’s growth. It will keep your company ahead of your competitor. You can make it happen if you can take enough care of your potential and talented employees. HR reporting & analytics are such important factors that could help you in this case.
Utilizing it perfectly, you can hire talented people, provide world-class working facility and make them fight for your company. Thus your team productivity will improve and your business will surely dominate the industry.
If you’re aware of its importance & execution, it’s high time to use a Human Resource Management tool for your company. And WP ERP HR Module could be your ideal choice for all that. You can get all essential HR-related functions & essential features in one place, which comes at an affordable price as well.
Anyways, we all know that It’s better to manage all the departments in one place than handling them separately. It will kill your time & effort. So you can utilize the WP ERP plugin to automate & manage your growing business with Project Management, Accounting Management, Customer Relationship Management, and Human Resource Management right from your WordPress dashboard.