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  • Writer's pictureAlfio Bonanno

The Importance of Data Driven HR for Small Businesses and Charities: Why You Should Invest in It

As a small business owner, you may be wondering if investing in data-driven HR is necessary and how it can benefit your organization. The answer is yes, it is important and can bring about significant cost savings and improved decision-making. This blog post will delve into the world of data-driven HR and how it can assist small organizations in improving their HR and business operations. At EthosHR, we understand that the journey to being data-driven can be daunting, with our expertise in data analysis and HR systems, we can assist you in making the transition as effortless as possible.

The Benefits of Data-Driven HR

Data-driven HR enables a business to make more informed decisions about hiring, retention, employee performance, and training, among other things. Through the analysis of metrics such as staff turnover, employee engagement, absenteeism, and performance, small businesses can make intelligent and strategic decisions that will improve their operations.

Small organizations can also benefit from cost savings, as data-driven HR can help to identify inefficiencies in their HR practices (a sickness scheme being abused, for example), leading to a reduction in the associated costs.

Furthermore, for organisations that heavily rely on external funding and often bid for tenders, or need to comply with reporting to funding providers on a regular basis, Data-Driven HR can really reap countless rewards. In fact, funding bodies will be more likely to finance organisations that have a consistent and transparent reporting mechanism compared to organisations that don’t!

Finally, by identifying and improving HR metrics, organisations can leverage the power of data to enhance their employer branding on the job market, thus contributing to the attraction of candidates in a job market where there is a fierce “war for talent” and being a good employer matter more than ever.

EthosHR - Your Partner in Data-Driven HR

At EthosHR, we understand that small organizations have limited resources and may find it challenging to transition to data-driven HR. That is why we have a team of experts that provide a range of solutions to assist small businesses in making the transition, including ad-hoc HR analytics reporting, bespoke HR analytics reporting, ongoing training and support services. Our people analytics can be customised according to your organization’s unique needs and can help to improve employee morale, productivity, and retention. Whether you are interested in a short-term reporting solution or you want to build your data infrastructure to scale your organisation, we have the right tools for you to succeed as our solutions are always completely bespoke. We do take the time to really know you and your organisation!

Choosing the Right HR System for Small Businesses

There are numerous HR systems available on the market and selecting the right one can be challenging. At EthosHR, we assist small businesses in choosing the right HR system that is tailored to their organization’s needs and budget. A good HR system can make a big difference in the efficiency and effectiveness of HR functions, data collection, reporting, and ultimately the overall success of the business. Further, having a cloud-based system increases accessibility and reduces reliance on paper-based records.

Examples of People Metrics

People metrics are data points that are used to measure different aspects of an organization’s human capital. Examples of these metrics include staff turnover, employee satisfaction, absenteeism rate, time to hire, and employee retention. By analysing these metrics, small businesses can identify patterns and areas requiring improvement, enabling management to make better decisions on aspects of HR management.


In conclusion, data-driven HR is an essential aspect of business that should not be neglected, especially by small organizations, that can really leverage data-driven HR in relation to other competitors who do not.

Small organizations that embrace data-driven HR can reap significant benefits in terms of cost savings and improved decision-making.

At EthosHR, we are committed to assisting small businesses in making the transition to data-driven HR as seamless as possible. Get in touch with us today to find out more about how we can assist you in your journey to data-driven HR.

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