Why HR Analytics Matter Part 1

At mid-sized to large companies, extensive HR software use is the norm. However, not all programs are created with the same capabilities; and even the best software doesn’t act as an effective business tool if it isn’t being used to its full capacity. Oracle and CedarCrestone have published a whitepaper about HR technology and processes as they relate to driving return on an organization’s human capital investment. The paper naturally focuses on the ways Oracle’s products support the effective use of HR analytics. However, the principles discussed can be used to evaluate your use of any current HR application and help you explore the value of new products.

The Paper’s Conclusions

• Businesses may experience significant losses of talent as the job market improves and employees leave to look for more satisfying work experiences or better compensation.

• Today’s businesses have access to software tools that can identify high value employees and factors that drive satisfaction. Employers need to start leveraging this information to retain talent.

• Businesses can make wiser human capital investments in areas like employee development with the use of more accurate HR analytics.

Survey Results

One part of this paper that you will definitely want to read is the section that offers information about performance for businesses that leverage existing and emerging HR technologies properly. This is the kind of data HR can bring into discussions with C-suite executives to make the case for investing in relevant HR technology. For example, the combination of ESS, MSS, and an automated HR help desk is linked to higher operating income growth compared to businesses that don’t implement these applications. Universal Onboarding is another self-service application that would dovetail well with the trend toward relieving the burden on HR and increasing worker satisfaction.

Next week, we’ll look at the ways HR analytics support best practices and how onboarding fits into the picture.