top of page
  • Writer's pictureAlfio Bonanno

Transform Your HR Strategy: How SMEs and Charities Can Benefit from HR Data Analytics

HR Analytics drive performance

HR Data analytics, also referred to as HR analytics or people analytics, is a data-driven approach to managing people at work. It may sound complex, but it doesn't necessarily require sophisticated tools or a hefty budget. Even small and medium enterprises (SMEs) and charities can leverage people analytics with simple, cost-effective strategies. Let's dive in.

Understanding HR Data Analytics

People analytics involves using data to make informed decisions about human resources. It can help organizations understand patterns and trends in workforce performance, engagement, and retention. By leveraging this data, organizations can make strategic decisions to improve productivity and employee satisfaction.

Simple Yet Powerful People Analytics Techniques

Even without advanced tools, organizations can still leverage people analytics. Here are some practical, straightforward strategies:

1. Employee Surveys: Regularly conducting anonymous employee surveys can offer valuable insights. The analysis of these insights can drive action plans that improve employee satisfaction and engagement.

2. Performance Reviews: The regular analysis of performance reviews can identify high performers and their common traits, and highlight areas where training might be necessary. A good analysis of performance reviews across the organisation conducted on qualitative or quantitative information contained in the reviews can also be incredibly helpful in understanding skill gaps across the organisation

3. Turnover Analysis: Looking at who leaves, when, why, and in which area of your business can provide powerful insights. It helps identify problem areas and take preventive measures to improve retention.

4. Job Application Analysis: Analyzing the data from job applications can help identify the qualities of those who are likely to be successful in a role.

Harnessing the Power of Dashboards and KPIs

Dashboards: An HR dashboard displays key metrics related to employee turnover, recruitment, retention, and engagement. These metrics can be visually presented, making it easier to spot trends and patterns. They can be useful and can provide insights on a real-time basis with contained costs. Applications like Microsoft Excel or PowerBi are excellent, and visually pleasing tools to achieve this.

KPIs (Key Performance Indicators): KPIs are the critical indicators of progress toward an intended result. For HR, KPIs could include measures like "Time to Fill" (how long it takes to fill a vacancy), "Turnover Rate" (how many employees leave), or "Employee Engagement Score" (measured through surveys). They can also be established as important monitors of key areas such as absence management, leave management, training, diversity, recruitment and more.

Why People Analytics Matter for Charities and SMEs

People analytics isn't just for large corporations. Charities and SMEs can also reap the benefits:

  • Enhanced Decision-Making: People analytics provides valuable insights for informed decision-making about hiring, training, and retaining employees.

  • Improved Efficiency: Identifying patterns and trends allows HR to streamline processes, saving time and resources.

  • Cost Savings: Understanding why employees leave and what keeps them engaged can reduce turnover rates, leading to significant cost savings.

  • Increased Productivity: Analyzing factors that contribute to employee productivity can create an optimal work environment.

  • Competitive Advantage: A deeper understanding of your workforce can be a differentiating factor in a competitive market. Being aware of the inner strengths and weaknesses of your workforce can help with strategic decision making, often much better than focusing on what your competitors do. Furthermore, for charities that constantly rely on external funding, HR analytics is a great way to demonstrate certain employee outcomes needed as requirements for grants or tenders

In a world where data is king, it's time to harness the power of people analytics in HR. Whether you're a charity aiming to maximize impact, or an SME looking to compete in the market, implementing people analytics can be a game changer.

Remember, it's not the size of your organization that determines its success, but the effectiveness of its people management. Start small, use what you have, and continually learn and adjust.

At EthosHR Consulting, we specialize in helping organizations of all sizes leverage people analytics for improved performance and engagement. We are well equipped to debunk the myth that people analytics and data is just for big enterprises! Contact us to learn more about how we can help you transform your organisation to successfully implement and harness HR analytics, and unlock a wealth of possibilities for the effective management of your workforce.

11 views0 comments


bottom of page