By nature, human resource professionals tend to enjoy the softer side of business, willing themselves toward relationships with people and steering as clear as possible away from analytics and numbers. Although this practice seems to have worked just fine for businesses for many decades, an HR evolution is upon us -- Welcome to the world of using human capital management data to boost your team and future talent to the next level!
Forbes summarizes industry estimates as follows: "There are over 3,000 credits available in the U.S. on both federal and state levels, and 50 percent are unclaimed due to insufficient HR technologies, poor analysis habits or a sheer lack of data-driven HR resources." In short, there's plenty of money being left on the table because it takes an organized system to efficiently categorize members of a workforce such that tax credit opportunities are easily, quickly, and continually identifiable.
Although there are plenty of opportunities to cut tax costs, the task of tracking and understanding potential credits can be daunting if it's only managed by human team members. Automating these processes with today's technology can mean big things when you step back and look at the big picture (and your bottom line.)
Hiring & Keeping Quality People
Employee engagement is a big deal these days, but it takes more than good intentions to make these words symbolize something more than a buzz phrase. The high cost of employee turnover has long been a point of discussion for business leaders, and, despite the ebbs and flows of the estimated numbers, no one's really nailed down a great method of measurement before now. That is, it wasn't until human capital management data began to be seen as a way to accurately pin down important retention and turnover metrics that companies began to realize just how much each lost staffer was truly affecting their bottom lines.
The Huffington Post reports, "According to a study by the Society for Human Resource Management, employers will need to spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement. Doing the math, that means that for an employee salaried at $60,000 will cost the company anywhere from $30,000 to $45,000 to hire and train a replacement." With such high price tags associated with retention, or a lack thereof, smart companies are looking toward big data to gain insight into what makes them tick, why they stayed, and what made them leave.
People data can enhance every aspect of your business, including:
Hiring people who best fit your company's culture and the needs of each specific position;
Optimizing retention and reducing attrition;
The following are some simple ways human capital management data can make its way into your organization's daily processes:
Employee satisfaction surveys
Social media insights
As a means of demonstrating the impacts of bad hiring decisions, consider a 2013 CareerBuilder study whereby more than 6,000 HR professionals across the world were surveyed. In the U.S., 36% of survey respondents indicated bad hiring decisions lead to decreased productivity and 32% indicated poor hiring was attributable to poor employee morale.
Despite the fact that data and the insights it can provide are often imperative to any business, the idea of dealing with excessive numbers and metrics can be quite overwhelming to HR pros who haven't before been exposed to such tactics. If you truly want to grasp everything the numbers can mean, you need a partner who will help you navigate your human capital management data. We'll provide the data so you can make appropriate decisions.