Unleashing the Potential of Data Analytics in HR: A Game-Changer for Decision-Making

Decision-making in human resources is both crucial and complex, as it requires evaluating HR metrics amidst evolving business and workforce dynamics. Although over 64% of HR professionals still rely on manual methods, shifting from traditional intuition-based methods to strategic, data-driven approaches has become vital for effective decision-making.

Understanding trends and potential issues is essential for gaining a competitive edge in attracting and retaining employees, yet some HR professionals struggle to implement these strategies.

So, how do we get started?

Well, for starters, HR professionals can leverage the use of analytics tools and software to analyze large amounts of data efficiently. Two key solutions for this are Sprout Insight and Sprout Pulse, which streamline HR processes.

• Sprout Insight: An analytics solution that gathers and analyzes employee data to provide companies with valuable insights. It offers a thorough look into absenteeism, attrition, attendance, headcount, planned leaves, salary, and the general workforce.
• Sprout Pulse: An employee engagement measurement solution used to survey employees across various business aspects. The insights gathered are used to inform decisions and develop initiatives to improve the workplace, with a primary focus on employee engagement.

Let’s look at how powerful data is for HR and how Sprout Insight and Sprout Pulse aid in making data-driven decisions that help companies’ bottom lines.

Harnessing the power of data offers complete workplace visibility. In the past, HR data remained underutilized due to storage and processing limitations, but with the rise of big data analytics and technological advancements, 77% of executives now prioritize HR analytics for driving business success. In fact, effective use of HR analytics has led to an 82% profit increase over three years for organizations.

So, what is HR analytics? And what is driving businesses to prioritize HR analytics?

HR analytics, sometimes referred to as people analytics, is the process of gathering and using employee data to enhance key business and talent outcomes.

Some of the key benefits of using HR analytics in HR include:

• Boosted Employee Engagement: Through HR analytics, organizations can recognize factors impacting employee satisfaction and, as a result, devise strategies to enhance employee engagement and retention.
• Effective Performance Management: Analyzing performance data equips HR professionals with the capability to distinguish high-performing individuals, address underperformance, and initiate performance enhancement plans.
• Strategic Workforce Planning: HR analytics contributes to forecasting future staffing needs, aids in succession planning, and tackles potential talent scarcities.

Aside from these benefits, there are a number of reasons why companies are adopting HR analytics into their operations. Here’s why:

1. Increased Adoption of Integrated HR Systems

The global market for HR tech was worth $23.32 billion in 2021, it is projected to grow by about 5.7% per year and reach $38.36 billion by 2030. Because of this significant growth potential, there has been a boom in the vendor market and many companies are turning to integrated, cloud-based HR systems.

This solution allows organizations to review their HR data comprehensively without the need for time-consuming manual processes. Today, about 3.2 million small-to-medium enterprises (SMEs) rely on cloud-based HR software to handle and oversee intricate HR operations.

2. Influx of Analytics Experts into HR

There’s a growing trend of bringing individuals with analytical backgrounds into HR. Positions in data science have become appealing career paths for recent graduates.

Bersin by Deloitte’s 2017 High-Impact People Analytics research indicates that 69% of organizations that have a workforce of 10,000 or more employees currently have a dedicated people analytics team.

3. Increase in Awareness

As the significance of analytics is increasingly covered in business media, CEOs are pushing their Chief Human Resources Officers (CHROs) to develop this capability. For instance, TRBank partnered with Sprout to enhance employee data management. As a result, they were able to simplify their operations and speed up their onboarding procedures.

With numerous HR tools available on the market, Sprout Insight is a great choice with its advanced data analytics capabilities. It aggregates data from clients’ HR and payroll systems and provides benchmarks on absenteeism and attrition.

Sprout Insight’s standout features are its detailed absenteeism, attrition, and attendance dashboards. 

Each dashboard consolidates critical data into an easy-to-understand visual format, providing a clear image of the company’s status.

• Absenteeism Dashboard: Users can track the Total Absenteeism Rate, Total Late & Undertime (Hours), as well as the Total Unproductive Hours and Total Absences of Employees. The dashboard also lets users estimate the cost of absenteeism and unproductive hours, making it easy to highlight their significance to decision-makers.

• Attrition Dashboard: Users can track total attrition categorized per gender, civil status, department, and assigned supervisor, as well as monitor employee tenure upon separation, the percentage of voluntary (resigned, AWOL), involuntary (terminated), and the reason for leaving. Users are also provided with an attrition benchmark to know their performance compared to their peers.

• Daily Attendance Dashboard: Provides insight on who reported for work, their clock-in time, the method used for clocking-in, and if using the Sprout Mobile, their exact location.

Access to these features can give you a “bird’s eye view” of your entire workforce. By analyzing employee data from Sprout Insight, you can identify trends, predict future issues, and make data-driven decisions to enhance employee management and improve overall well-being.

Embracing data analytics goes beyond employee performance; it also means considering the human factor — the employee experience. Conducting surveys is crucial for gaining insights into the employee engagement and experience, and Sprout Pulse excels in measuring, analyzing, and representing employee engagement to drive innovation and adaptability.

Sprout Pulse was built to simplify employee engagement monitoring, even in hybrid work setups, by automating manual HR tasks. Since this solution is integrated with Sprout’s ecosystem, users no longer need to go elsewhere to answer employee surveys. Plus, users can have peace of mind knowing that this solution ensures anonymity across all surveys and provides accurate data.

• Pulse Analytics Dashboard: Shows different charts and filters to easily visualize what’s driving engagement, productivity, and turnover. These are organized into different sections: Engagement Metrics, Participant Responses, Engagement Scores, and Analysis per Demographic. The demographics section lets users track and monitor the proportion of respondents by: Age Generation (Gen X, Gen Y/Millennials, Gen Z, Baby Boomers), Job Level (Rank and File, Manager, Officer), Tenure Group, and Gender.
• Prebuilt Surveys: Sprout Pulse automates manual tasks for its users, providing pre-built templates and analyzing results. This makes it easier for users to access engagement scores from past surveys without having to sift through lengthy reports. Additionally, Sprout Pulse uses demographic data (age, tenure, and job level) from Sprout’s system to streamline the survey process for employees. This means users no longer need to input personal information repeatedly when answering engagement surveys. One of the prebuilt surveys available is the Needs Analysis Survey, which is used for baselining to determine the weakest employee engagement areas.

• Engagement Scores: Users can track and observe the average engagement scores for each department, tenure group, and job level, as well as the average engagement score and respondents trend over time to assess employee loyalty and pinpoint areas for improvement

Sprout Pulse does more than just collect and analyze data; it provides the means to address employee engagement and foster a positive workplace culture. With the insights from this solution, you can gain a deeper understanding of what’s happening within your company and take actionable steps towards improving engagement, productivity, and overall job satisfaction, which a simple form cannot do.

As we have thoroughly examined, data analytics opens up new doors for insights to help you innovate your existing HR processes and stay aligned with the evolving industry needs and standards.

To stay ahead of the curve, you need to utilize the latest HR data tools as they keep your business agile, resilient, and competitive in today’s data-driven world.

However, effective data analytics in HR doesn’t come easy; it requires a well-defined strategy and a forward-thinking mindset.

In this context, Sprout Insight and Sprout Pulse can be game-changers for your business as these tools work together to facilitate a smooth transition toward making strategic data-driven decisions.

Take the leap and see the difference in a data-driven workplace. Invest in HR innovation today!