HR Analytics Archives | Novative

HR Analytics, the key strategy for a high-performance company.

Patricia Maniscalco — Wed, 12 Oct 2022 14:05:59 +0000

Summary

Why an HR Analytics tool is the smartest move?

What are the key features to look for in an HR Analytics tool?

How does HR Analytics greatly improve your daily management?

You’ve probably heard of the concept of data-driven HR and how the development of HR analytics has marked the biggest progress in the world of human resources since the spread sheet.

But what precisely is HR analytics and how is it helpful? Data is where the answer starts.

If you are still using paper files or spreadsheets to accomplish HR tasks, you are already collecting and storing HR data.

HR data includes information about the organisations and their workforce. Most HR teams use dedicated HR software to collect data on a daily basis across a number of different areas.

But collecting is only the first step if you wish to utilise the full potential of your data. You must be able to read data and figure out what it means to you and your organization. That is where HR analytics comes into play.

What is HR Analytics?

HR analytics helps HR professionals to make data-driven decisions that have a significant impact on an organisation’s success. It covers the entire process of identifying, collecting, analyzing, and reporting on HR data.

Human resource management should use data to its fullest extent. Data is important because it shows historical trends, numerical values, and other types of information a business can benefit from to better develop and manage human resources.

In other words, HR analytics is the math you use to analyse the data and facts you have in front of you to determine how you are performing.

Why an HR analytics tool is the smartest move?

An HR Analytics tool is a tool that helps you collect and analyse key workforce data. It simplifies the process and make it easier to visualise the data and create insights that can drive HR decisions.

If you use an all-in-one HRIS, you are already gathering metrics. While these software applications help you manage attendance, hourly time tracking, candidate applications, job postings, hiring, and benefits, they also naturally collect a wide range of data.

The main challenge is then to identify what data to use and how to use it. That’s the reason why you need an HR analytics tool that will collect, structure, and analyse data according to a set of KPIs relevant to your organisation. With the right HR analytics tool, you will be able to conduct analysis that can drive smart and growth-oriented HR strategies.

You will be able to record the number of actions you take and how much time it takes to accomplish a specific task. Based on this data, you will have insights on how you are doing with your missions.

HR analytics makes it possible to carry out operational and concrete reporting on human resources but also to predict or simulate a set of scenarios related to human capital.

What are the key features to look for in an HR Analytics tool?

There are many HR analytics tools available on the market. Some are integrated into bigger HRMS packages while others are sold as a separate piece of software.

Before you make your choice, it’s important to evaluate your HR procedures and determine exactly what you need from your software. Each of these solutions has its unique features set tailored to fit particular use cases.

That being said, here are some features every organisation should look for to choose the right HR analytics tool:

Reporting and Visualisation

One of the most crucial features of any HR analytics solution is data visualisation —This is what enables HR departments to extract patterns and useful insights from the mountains of employee data they are storing.

So, there are a few points to consider regarding this feature:

You must be able to customise your reports so that you can quickly access pertinent information and monitor the KPIs for your organisation.
Your team must be able to share reports easily and access them in different formats (Excel, PDF, etc.)
The tool must include a system of access rights in order to allow access to statistics and reports only to the persons concerned.

Security by design

All HR tools contain sensitive and confidential personal data, from contact details, bank accounts numbers and addresses to personal health information and performance reports.

Did you know that the PII – Personal Identifiable Information – such as the ones we have mentioned is the most compromised type of data when it comes to cyberattack?

Therefore, HR analytics tools or HRIS should come with built-in security features such as access rights, two-factor authentication, high security and confidentiality policies as well as compliance with ISO standards such as ISO27001.

User-friendly interface

Last but not least, your software must be simple to use. If you choose a solution that is too complex, your HR team could require further training to use it. Make sure the tool is easy to use to avoid going back to spreadsheets.

How does HR analytics greatly improve your daily management?

1 – HR Analytics improves the candidate & employee experience

56% of job applicants encountered a technical issue during the application process.

Talentegy, 2019

Recruitment analytics allows you to monitor the time between a candidate’s application for a job and their acceptance of an offer. So why should you track such a thing?

Because the applicant experience is crucial to the employer brand. It’s important to know how much time you take to hire a new employee to measure the effectiveness of your hiring process.

Reducing the time to hire may raise your hiring success rate, which increases your chances of acquiring top talent in a crowded market.

Novative’s HR recruitment module and our Nova Smart NG analysis and report tool has been designed with high consideration of these factors. HR analytics will be a powerful ally in your recruiting process.

2 – HR Analytics can analyse the turnover rate

The turnover rate, which is expressed as a percentage that illustrates how many workers left a company during a given period of time, usually a year.

An analysis of employee turnover data can help pinpoint why employees are leaving your organisation . As an example, you may analyse the turnover and then find out this happens in a specific department with a specific supervisor. Accordingly, this will let you deduce that maybe the supervisor lacks management skills. You can then take action and provide the manager with training on different management methods and how to implement them. Later, you can compare and see if the actions taken have had an impact on the turnover rate in that department.

That is why turnover analysis should not be left behind. A turnover analysis can be used to identify issues with engagement, compensation, development, or hiring.

With the use of such data, businesses can develop focused retention strategies, minimise turnover rates by identifying the root cause, and avoid losses before they occur.

3- HR Analytics helps you keep track of your expenses & save money

Organisations can use expense analytics to compare expenses to budgets and make sure they are not overspending or making unnecessary purchases.

Tracking expenses helps you stick to your budget. Keeping track of your finances is the best way to control your spending.

Our advice

At the end of each month, review the expenses you kept track of to see how much you spent compared to what you expected to spend. If you go over budget, try to reduce your expenses in that area. If you don’t spend too much, you might want to put more money toward debt repayment and savings.

In either scenario, you should use the data that your expense tracking tool provides you with and then adjust the budget for the following month.

4- HR Analytics monitors employee engagement levels

Did you know that companies with highly engaged employees are 21% more profitable?

Gallup

One of the hottest HR topics is employee engagement. And it’s becoming more important due to the current age of remote-based working.

The use of big data* to improve employee engagement is a lot more than using employee engagement surveys to track data. Reward and recognise top performers is also possible.

Big data can be utilised to spot employees who are underperforming and possibly losing motivation. Analysing employee performance KPIs can all help HR to provide the support to employees in need and effectively evaluate the employee.

This information can then be used to guide and assist managers in identifying opportunities for growth, support, and engagement of their teams.

* Big Data refers to the software tools that can quickly analyse enormous amounts of data from various systems. In regard to HR management, people related data is used to better understand an organisation’s human capital, risks, and business performances.

HR Analytics and its proper use are without a doubt advantageous to HR and the business as a whole. The changes that can be made thanks to relevant analysis have the potential to be profound and far-reaching.

It’s a smart move that any business can benefit from. To start, HR people should move beyond the limitation of the manual HR process. The future of HR is promising, all you have to do is seize the opportunity.

Learn more about our HR analytics solution

The post HR Analytics, the key strategy for a high-performance company. appeared first on Novative.

Best Practice: Conducting a Pay Equity Analysis

Patricia Maniscalco — Tue, 01 Sep 2020 08:00:26 +0000

In our previous article, we have highlighted the importance of a pay equity analysis and have pointed out benefits for your business. Besides better retention and compliance with the law, it can also reduce the risk of a bad reputation. But still, the uncontrolled gender pay gap indicates that women earn 19% less than men showing that pay equity is still an issue within the workplace.

According to HR People + Strategy, only a 5% difference in starting salary ($50,000 to $52,000) can result in a $200,000 cumulative pay gap over a 40-year career. And this is exactly where the analysis of pay equity comes into play. It aims to eliminate overall wage disparities based on race, gender or other unjustified criteria.

In this article, we look at how you can conduct a pay equity analysis to eliminate these factors.

The Pay Equity Analysis

Conducting an annual pay equity analysis is an important tool for your business. When people hear the word pay equity analysis they automatically assume that it is about paying everyone equally. However, this could not be further from the truth. A pay equity analysis is a method of researching pay rates within your company. It can provide you with the information you need to identify pay disparities and opportunities to assure equal pay for work of equal value. The main objective here is to limit the risk and ensure compliance with federal and state laws.

To conduct such an analysis, it is advisable to set up an audit team of experts in human resources, payroll, finance and legal matters. This will ensure that the analysis is conducted in compliance with data protection laws.

	First, you will need to think about why you are doing an analysis. Do you want to stay ahead of regulation and law? Or do you want to improve your overall company policies and system around pay distribution? Writing down the purpose of your analysis will help you in the process of allocating needed resources (personnel, budget, time).
	The next step is to look at your current compensation model and process. This will help you to find the gaps in your system that may have led to pay disparities. Ultimately, the goal is to close those gaps within your compensation model by developing new pay rates and criteria.
	Now you will need to collect all data that is needed within the scope and purpose of the analysis. Data you most likely need are employment status, historical employment, demographic information, job details (level, full-time/part-time/responsibilities, compensation) and performance rate. Since this data contains sensitive & private information, data security & anonymity must always be guaranteed. In addition, it is recommended that certain sensitive data be removed before the data is transferred to another member of the audit team, which is not necessarily required for analysis, e.g. name & birthday.
	To gain better insight, group your data into job categories that you consider important for your analysis, such as similar departments, locations, full-time employees or job titles. Once you have grouped the collected data, you can now identify factors that may justify noticeable pay differences.
	Analyze your data by comparing the job descriptions of the job with the data you have collected about the people working in that job. Then compare employees with similar positions and responsibilities. Also, focus on your gender distribution within the jobs and how they are compensated. An example of a first analysis is to look at entry-level positions and compare the hourly rate.
	When you have analyzed the data, you may have found some discrepancies in the payment for work of equal value. You should pay attention to differences in the remuneration of people in the same positions, with good performance ratings or with the same experience and skills. You should also look more closely at high pay for an employee with very poor performance ratings. Assess whether these differences in pay are legally justified.
	Lastly, report any inequalities identified to the management team and to take immediate corrective action. This should include a discussion on whether the results should be communicated to all employees in public. However, affected employees must be informed immediately. Salary adjustments should be effective immediately to avoid the risk of penalties from the judicial authorities.

Overall, a regular pay equity analysis is highly recommended ensuring compliance with the law. It is very beneficial for creating a workplace where employees feel valued and have the confidence, that their company wants the best for them.

Contact us & find out more about how Novative’s services and solutions can help you to carry out a simple and efficient pay equity analysis.

The post Best Practice: Conducting a Pay Equity Analysis appeared first on Novative.

Pay Equity & its Benefits for Your Organisation

Patricia Maniscalco — Tue, 25 Aug 2020 06:34:08 +0000

For years, the legal landscape surrounding pay has become increasingly complex. Employers have to justify salary disparities between jobs of equal value.

However, it is no news that women earn 19 % less than men when comparing all working women to all working men. One reason for this is that women often work in professions that are known for their comparatively low income. As a result, women are clearly under-represented in the best-paid jobs – not to mention people of colour. To change this, human resource departments need to take corrective measures to achieve pay equity within their company.

In this first article, we highlight some of the benefits of conducting a pay equity analysis and how it creates a workplace of trust, enthusiasm & commitment. But first: What is pay equity?

What is Pay Equity?

Pay equity can easily be confused with equal pay. However, it is not about men and women earning equal wages in similar jobs. Pay equity means equal pay for work of equal value. This is why the analysis compares the value and pay of different occupations, such as a marketing specialist and IT specialist.

What is a Pay Equity Analysis?

When people hear the word pay equity analysis they automatically assume that it is about paying everyone equally. However, this could not be further from the truth. The analysis is a method of researching pay rates within your company. It aims to resolve the issue of undervaluation of occupations typically performed by minority groups of society. In general, this means that the analysis supports the elimination of overall wage disparities based on race, gender or other unjustified criteria.

Benefits of Pay Equity for Your Organisation

Pay equity analysis makes the alarm bells ring for many business owners and managers because of many associate costs with it. The result? Wages are not looked at or touched at all. However, when you check and compare the wages of all employees regularly it can provide you with many competitive advantages.

	It enables you to comply with the law and avoid penalties and potential wage discrimination lawsuits. In addition, you minimize the risk of employees talking negatively about their payment and treatment within your company. This could result in your brand & company losing its reputation and thus damage your business in case of any discrepancies.
	A regular analysis and adjustment of wages in case of unjustifiable disparities improves work ethics and reduces turnover. Your employees will have the confidence that you will take care of them and ensure pay equity. They will be more committed to the company, which will show in the quality of their work.
	During the analysis, you will also have a closer look at your job descriptions and requirements. This will probably lead to revising and updating them for future positions. The greater precision in the definition of requirements and tasks of the various jobs leads to a better match between the profile of the potential candidates and the job requirements. This, in turn, will guarantee competitive pay rates that attract new employees and lead to even higher retention and improved performance.
	You may also notice that in the past you have calculated your budget on the basis of wrong assumptions regarding tasks, projects & responsibilities of different departments. With the new insights into the distribution of tasks in the company, you can allocate the budget much more efficiently, because you know exactly who is responsible for what.

Overall, a regular pay equity analysis is highly recommended. It not only ensures compliance with the law, but it is also very beneficial for creating a workplace of respect and equality. Wait for the second part of this article on how you can conduct a pay equity analysis.

Contact us now & find out how Novative’s services and solutions can support you to carry out a simple and efficient pay equity analysis.

The post Pay Equity & its Benefits for Your Organisation appeared first on Novative.