HCM analytics ranges from basic metrics to comparative information, from reports, scorecards and dashboards to statistical and predictive models. The benefit of HCM analytics comes from the ability to use the information in a company to diagnose the current situation and make better decisions to move businesses towards their strategic goals.
Many organisations will understand their HR costs reasonably well. However most of the value in analytics will come when you start to go beyond simple payroll costs for example and start to look into what value people can bring to the organisation. Also when you integrate HR data with other company data real insights can be revealed. Unknown previously hidden trends and issues can become glaringly obvious when the data is available and is viewed in the correct way. Things such as identifying an aging workforce or workforce diversity can only be effectively identified and insights gained with good HCM analytics in place.
When done properly analytics can become an enabler, showing people across an organisation the things they need to know to make informed decisions. It can also identify areas in which to focus efforts and as such the metrics are not the end goal but rather they are the starting point. HR strategies and programs can then be developed to act on the insights gained from the metrics and implement them effectively.
The more HR departments use compelling and clear data that supports fact-based decision making the more credibility and influence they will have in corporate decision making.
Many companies do not do HCM analytics well and part of the difficulty has often been HR people don’t themselves know what they need to know or know what is possible. However the good news is that introducing better analytics into clients is now easier than it has ever been with new tools available through integrated analytics and the “POIT HR Analytics: Demographics” packaged solution.
The turnover dashboard from the POIT HR Analytics: Demographics package for SAP clients.