{"id":6711,"date":"2015-04-20T13:00:08","date_gmt":"2015-04-20T20:00:08","guid":{"rendered":"http:\/\/recruitloop.wpengine.com\/?p=6711"},"modified":"2023-05-12T12:16:04","modified_gmt":"2023-05-12T19:16:04","slug":"hr-analytics-software","status":"publish","type":"post","link":"https:\/\/www.zippia.com\/employer\/hr-analytics-software\/","title":{"rendered":"Why HR Analytics Can Help Improve A Company&#8217;s Bottom Line"},"content":{"rendered":"<p>\u00a0<\/p>\n<p>Human Resources (HR) analytics falls under the umbrella of \u201cbig data,\u201d a popular buzzword in the software and technology space.<\/p>\n<p>Everybody seems to be talking about it.<\/p>\n<p>I&#8217;m not kidding here, but\u00a0while walking over the Golden Gate Bridge last weekend, I seriously overheard 3 different couples discussing big data while jogging past me.<\/p>\n<p>(OK so maybe the likelihood of joggers talking about big data is <em>somewhat<\/em> higher in San Francisco!)<!--more--><br \/>\n<a href=\"https:\/\/www.zippia.com\/employer\/7-lessons-on-hiring-from-googles-big-data-research\/\">We&#8217;ve posted<\/a>\u00a0about big data\u00a0in the past, and we&#8217;ve also published several\u00a0posts\u00a0about <a href=\"https:\/\/www.zippia.com\/employer\/recruiter-tips-6-metrics-to-always-keep-a-close-eye-on\/\">important recruiting metrics<\/a>.<\/p>\n<p>During my years managing recruitment teams, I always encouraged my recruiters to keep a close eye on a specific set of metrics. At the same time we always\u00a0made sure we knew what metrics our clients were measuring. These often included:<\/p>\n<ul>\n<li>Time to hire<\/li>\n<li>Cost per hire<\/li>\n<li>Employee retention<\/li>\n<li>Completed employee trainings<\/li>\n<li>Employee productivity<\/li>\n<li>Employee diversity<\/li>\n<li>Competitive compensation<\/li>\n<li>Competitive benefits<\/li>\n<\/ul>\n<p>It&#8217;s all well and good to <em>measure<\/em> these stats or\u00a0talk about the importance of these metrics.\u00a0But what do recruiters and hiring managers actually <em>do<\/em> with all the information?<\/p>\n<p>Given how\u00a0little research has actually been done on just <em>how<\/em> analytics impacts key HR and recruiting metrics, our\u00a0colleagues over at Software Advice (an online reviewer of recruiting technology) recently conducted\u00a0a seven-day online survey, and gathered over 100\u00a0responses from a random sample of \u00a0businesses across\u00a0North America.<\/p>\n<p>The report explains how for less tech-savvy companies, HR analytics may be as simple as a formula in a spreadsheet. For example, a sales team manager might calculate the number of orders\u00a0the company receives per day to determine how many new salespeople need to be hired next quarter.<\/p>\n<p>Alternatively, these analytics can be more sophisticated. For example, some companies may leverage data collected by\u00a0their human resources teams, which often includes <a href=\"https:\/\/www.zippia.com\/employer\/do-you-provide-your-staff-with-training-or-development\/\">completed trainings<\/a> and <a href=\"https:\/\/www.zippia.com\/employer\/how-to-run-an-effective-end-of-year-performance-review\/\">performance reviews<\/a> for individual employees. This data can help identify common skills and attributes among the company\u2019s strongest performers in order to look for similar candidates when hiring.<\/p>\n<p>In both examples, HR analytics is used to improve a company\u2019s bottom line. This occurs either by ensuring there are enough employees to bring in maximum revenue, or that new hires have similar skills and attributes to the company\u2019s most successful current staff. The second example, however\u2014which involves using software to aggregate data and identify trends\u2014is the type of HR analytics the report from Software Advice focused\u00a0on.<\/p>\n<p>I wanted to share some of the key findings.<\/p>\n<h2 id=\"1-companies-using-hr-analytics-software-outperform-companies-that-do-not\"><strong>1.\u00a0Companies using HR analytics software outperform companies that do not<\/strong><\/h2>\n<p>Believe it or not, less than half of global companies use analytics to make talent-related decisions.<\/p>\n<p>This is a pretty scary concept since it means that more than half of the talent-related decisions being made in businesses today may still be totally reactive and often still be based on gut feel.<\/p>\n<p>This can be very dangerous.<\/p>\n<p>The survey findings showed that\u00a0when it comes to the common recruiting metric of time to hire, those respondents using HR analytics software reported\u00a0significantly better performance than non-software users: a combined 86 percent report \u201cgood\u201d or \u201cvery good\u201d performance, while only 58 percent of non-software users report the same.<\/p>\n<p>Looking at these findings, how would you rate your own performance?<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-6714\" src=\"http:\/\/recruitloop.wpengine.com\/wp-content\/uploads\/2015\/04\/HR-Analystics-software-users.png\" alt=\"HR Analystics software users\" width=\"686\" height=\"456\" \/><\/p>\n<h2 id=\"2-nearly-30-of-small-businesses-are-most-likely-to-be-using-some-form-of-an-hr-analytics-solution\"><strong>2. Nearly 30% of\u00a0small businesses\u00a0are most likely to be using some form of an HR analytics solution<\/strong><\/h2>\n<p>If HR analytics software clearly has a positive impact on a company\u2019s hiring success, why don\u2019t <em>all<\/em> companies use it?<\/p>\n<p>Does your business have an HR analytics solution?<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-6715\" src=\"http:\/\/recruitloop.wpengine.com\/wp-content\/uploads\/2015\/04\/Business-sizes-using-analytics.png\" alt=\"Business sizes using analytics\" width=\"724\" height=\"446\" \/><\/p>\n<p>If not, what are you doing to keep track of your talent attraction, selection and retention strategies? And more importantly, why are you not incorporating an HR analytics solution in your human capital practices? Perhaps you will find your answer below.<\/p>\n<h2 id=\"3-budget-is-the-greatest-obstacle-to-implementing-hr-analytics-software\"><strong>3.\u00a0Budget is the greatest obstacle to implementing HR analytics software<\/strong><\/h2>\n<p>As a recruiter I can&#8217;t tell you how many times I have heard the excuse &#8220;<em>we can&#8217;t afford to pay a <\/em>[traditional]<em> recruitment fee<\/em>&#8220;. (Fortunately there&#8217;s <a href=\"https:\/\/www.zippia.com\/employer\/portfolio\/hiring-with-recruitloop\">a very easy solution<\/a> for any hiring manager or internal recruiter who feels that way!).<\/p>\n<p>So it didn&#8217;t surprise me to read that\u00a0the <em>perceived<\/em> cost of implementing an HR analytics tool\u00a0was the greatest obstacle for most (53%) of the businesses surveyed.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-6716\" src=\"http:\/\/recruitloop.wpengine.com\/wp-content\/uploads\/2015\/04\/Reasons-for-not-using-analytics.png\" alt=\"Reasons for not using analytics\" width=\"736\" height=\"502\" \/><\/p>\n<p>Perhaps you can relate to one or more of these reasons. However\u00a0despite the initial investment, HR analytics software can help any organisation\u00a0save critical funds by making smarter hires. Thus, it may be in the best interests of any business planning to\u00a0grow their employee base to thoroughly evaluate the return on investment of implementing\u00a0an HR analytics solution.<\/p>\n<p>As the team at Software Advice point out, in the end, the decision to invest in an HR analytics solution will depend on your company&#8217;s\u00a0unique situation.<\/p>\n<p>The\u00a0first step in successfully using HR analytics software is having a data collection process in place. Then after an HR analytics software solution is purchased, it then needs to be integrated with any current systems in place used to track employee data.<\/p>\n<p>Once they gain confidence in the use of their reporting tools, companies can then begin to use their analytics software to make better hiring and performance management\u00a0decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Given the hype about how HR is shifting from an administrative department to one that plays a crucial role in outlining business strategies, should HR analytics be more widespread across HR departments?<\/p>\n","protected":false},"author":3,"featured_media":8827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[73],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why HR Analytics Can Help Improve A Company&#039;s Bottom 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