What are Employee Analytics?
Gartner defines Employee Analytics, also known as Workforce Analytics, as, “an advanced set of data analysis tools and metrics for comprehensive workforce performance measurement and improvement. It analyzes recruitment, staffing, training and development, personnel, and compensation and benefits, as well as standard ratios that consist of time to fill, cost per hire, accession rate, retention rate, add rate, replacement rate, time to start and offer acceptance rate.”
Ivey Business Journal explained, “Successful workforce analytics involves modeling data (both qualitative and quantitative) to understand the past, present and future drivers of organizational performance. It is a rigorous and systematic approach to defining workforce problems and testing successful solutions. It informs what tools and processes the organization should put in place to achieve its highest potential. Finally, analytics is most successful when applied to an immediate and pressing business problem whose solution is critical to competitive success.”
Why Do I Need Employee Analytics?
Ivey Business Journal emphasized the importance of Employee Analytics by mentioning that, “According to a newly released study of over 1,700 CEOs from around the globe, human capital was cited as the most important factor in maintaining competitive advantage. Other traditional sources of advantage, such as access to raw materials and physical assets ranked far lower on the scale. These findings highlight what many of us who have worked in the human capital field have known for years: people are essential to the long-term success of the organization. Yet, organizations have not applied the same rigor to understand this critical asset. Compared to functions such as finance and supply chain management, HR has not had a traditional depth of experience in making fact-based decisions. Another recent IBM study of over 700 Chief Human Resource Officers highlighted that only slightly more than one-third felt that their organization was able to use analytics to effectively make strategic decisions about their workforce.” Although most organizations fail to value, prioritize, and/or utilize employee analytics, integrating it into your organization’s strategy “can provide the opportunity to build a more effective, empowered and engaged workforce that increases the value of the larger organization.”
Why Choose Competitive Analytics to Assist with Employee Analytics?