Data Analytics

Key to developing your company’s competitive recruiting edge

HR leaders have access to a mass of impactful data-driven insights and most (83 percent) rely on such analytics to make more informed business decisions, according to the Paychex Pulse of HR Survey. Still, many HR leaders face common challenges such as finding qualified candidates (56 percent), finding candidates who fit their company culture (41 percent), and retaining their best employees (41 percent) – especially in the current labor market.The importance of benchmarking and leveraging analytics to combat hiring challenges at businesses of every size has perhaps never been more critical.
 

The first crucial step is understanding the difference between metrics and analytics and how each can drive business growth and success. Metrics and analytics are commonly confused; they’re related but the distinction is important. Metrics show what happened as a result of decisions made in the past. They’re useful in gauging service levels and holding people and groups accountable. In contrast, analytics look to the future, aiming to project the potential impact of business decisions you make today on tomorrow’s outcomes.Establishing baseline metrics to assess past performance is a great place to start as HR leaders set out to use data analytics to inform future business strategy.

Leaders should then look to effectively utilize data to establish HR goals that are aligned with the organization.One of the simplest and most widely applicable examples of leveraging data to make better business decisions is with employee retention. Turnover occurs in every organization, but it should be consistent rather than sporadic with unpredictable ups and downs. The ability to track turnover and compare it against historical patterns gives HR leaders the big picture vantage point they need to see if their numbers deviate from industry or geographic norms. A consistent deviation could indicate a pattern and HR can then use that insight to drive strategic conversations with leadership about the underlying larger issues that may be causing employees to leave the company.

In today’s tight labor market, it may indicate a larger concern with the competitiveness of your compensation and benefits package or your traditional recruiting approaches.

Lastly, you should find an HR technology solution that will help take steps to meet those goals and measure progress along the way. It's more than likely you have access to data but may lack the tools you need to gain meaningful insights and a competitive edge – which is essential when hiring in today’s market.

The responsibilities of an HR leader continue to increase. From being tapped into company culture and morale to encouraging a high level of accountability and engagement that delivers business results. It is critical for HR leaders to establish a baseline set of metrics and analytics to compare their results against the norm and allow for immediate course correction when necessary.With the right strategy and tools in place, HR leaders can leverage analytics to ensure that they recruit, hire, and retain the right talent to drive company growth.

Author Bio

Tom Hammond is VP of Corporate Strategy and Product Management at Paychex. Tom assumed the role of vice president of corporate strategy and product management in January 2017 with more than 25 years of experience at Paychex. Visit www.paychex.com