Human Resources are the key drivers of success for any organization. Factually, nothing is valued as high as skilled minds when placed rightly in time. This is the reason that organizations worldwide are making tremendous efforts to find and then retain valuable talent. While companies put continuous emphasis on the costly process of recruitment, there isn’t enough attention given to addressing the issues which impel employee attrition.
Well, to save an organization from substantial and long-lasting damage, it’s important to identify the people’s problems and solve them using actionable insights. For this, people analytics empowers the business leaders and elevates the Human Resource Systems by guiding them to make necessary changes before turnover swells and productivity drops.
As per a 2020 retention report, more than 65 million employees left their jobs-voluntary or involuntary which cost more than $630 billion to industries. Out of these employees, 78% could have been prevented by the employer which means three out of each four-employee turnover was preventable. Relating this further, HR managers now understand the reason to adopt the process and practice of people analytics more than ever.
The rationale behind putting a high premium on analytics is that decisions are guided by facts and figures rather than intuitions. Further, it helps in cracking the formal or informal aspects of human relations at the workplace which guide their actions, strategies, and future course of action concerning their work.
Simply put, HR Managers, can no longer rely on gut feeling to design strategies for high-caliber minds. Advanced level managers would use the analytics to improve HR practices and measure employee satisfaction and business success through them.
Mapping Attrition Analytics
Attribution is always expensive; therefore, companies are intensifying their efforts to know employees on the verge of leaving so that they can be stopped. As mentioned, HR (People) analytics is a data-driven way that involves studying facts, functions, models, processes, opportunities, and challenges concerning employees to establish and maintain a database. Herein statistical techniques and other interpretation tools are applied to generate compatible insights for making rational decisions and answering key business questions.
Leaders understand what it costs to a company when a qualified and deserving talent leaves. It occurs like the feeling of getting a gut punch which leaves leaders scrambling both emotionally and operationally. Next, it is followed by an arduous process of finding and training a suitable substitute. Plus, it adversely impacts the overall productivity of the company, and its goodwill among its stakeholder and slows down the targets of delivering promises in time.
HR analytics measure and analyze data on employee behavior, challenges, and attritions and help in SWOT analysis. Further, it helps in designing workforce patterns, HR Planning, predicting turnover, addressing recruitment and retention-based challenges, mapping ROI on HR practices, and uncovering future potentials of growth that otherwise may have been missed. Collapsing narrow silos, HR analytics causes to intersect and join the employee’s wellness, issue, and attrition.
Implementing HR Analytics
In contrast to popular belief, compensation is typically not the factor that impels employees to quit. Rather a variety of subtleties do. Studies indicate career development as the first factor followed by work-life balance and manager’s behavior. However, job characteristics and well-being in the workforce are also ahead of compensation. Meanwhile, other discoveries indicate that during work anniversaries (6% to 9%), midlife milestones (12%), social gatherings or reunions (16%), job search activity jumps. Meanwhile, it’s not simply the professional life rather personal life also plays an important role in determining when he or she looks for a new job.
Companies are using these intelligent scorecards to locate employees with the highest ‘likely to leave’ scores. Even the behavior of employees on social media, entry and exit intervals at office buildings, or spending time in exploring unsolicited emails are tracked to get clues about the employees eyeing the exit. Some CEO compared this science with the way credit scoring predicts the chances of loan repayment. Well, having known that turnover rates are climbing, it is time to see the root cause of this problem and solve it to build a solid foundation for your business.
Devise Models and Mechanisms
Experts pinpoint that perhaps a working framework on ‘join-stay-leave’ can uncover the recent trends. Or maybe an anonymous survey can analyze the impact of micro and macro changes like leadership changes, policy or pay changes, office relocation, or changes in sitting arrangement, etc. When the employee turnover is found increasing, an organization shall look into the ideas that can help them flourish like learning needs, community needs or networking needs, etc.
Overall, for a higher turnover rate, there must be something bad in or around the system. HR Professionals can look to holding periodic reviews, on employee engagement, satisfaction, and touchpoints. Also, the trends within the data, demographics and cultural group, recognition level, and ability to integrate work-life can speak about the incredible patterns. More than helping the employees, it can also set a road map for internal mobility programs to provide welfare and growth opportunities to employees regularly.