Top 3 Reasons HR Needs a People Analytics Strategy in 2022!
As we exited 2020, business leaders were focussing on a return to “business as usual” in 2021 as restrictions were lifted and we adapted to cope with the new normal. Companies across the globe started to return to the office, with employees acclimating to a new work/life balance. Regardless, 2021 hasn’t been without its fair share of challenges as Covid-19 continues to shape the future of work. Many companies are faced with substantial administrative transformation, and HR departments have had a lot to concentrate on as employees seek changes to their working practices. Unfamiliar circumstances have emerged, including labor deficits in some industries.
The year 2021, often called the year of “the great resignation,” saw a higher than usual number of employees leaving their jobs or searching for other opportunities as they looked to improve their everyday circumstances, better working practices, and create a sense of wellbeing.
Increased Workplace Regulations
Whether your workplace is beginning to restart operations or continuing to deliver vital services with some significant modifications, the future will undoubtedly involve changed workplace regulations.
As Covid-19 continues to fluctuate, shifting policies will push workplaces to adjust and acclimate to ensure the safety of employees and others who enter the workplace. Building a secure workplace for all involves oversight into how employees, leaders, and others interact daily. Fortunately, people analytics is able to facilitate these processes to provide insights essential for businesses to continue to thrive and meet the new demands they are faced with.
People analytics provides a holistic view of your complete workforce to analyze key data points and automate the process of drilling into the details to understand any deviations from COVID-19 workforce regulations to help businesses enhance operations and drive better outcomes.
Tight Labor Markets
To tackle tight labor markets, top organizations are shifting to people analytics. Businesses can assemble a precise picture of their people by compiling and analyzing employee data and delivering an employee experience specifically designed to meet their new expectations.
Today, top HR leaders are relying on people analytics to enhance their benefits strategy by looking into which benefits their people are seeking and providing flexible packages to attract and retain their key resource, their people. Businesses that use employee data to report on various elements of the company have higher employee engagement scores than those that don’t. Workforce analytics has become a vital tool for HR leaders to prove, and improve, the effectiveness of their strategy in meeting their business objectives.
The Great Resignation
We have all heard about the “Great Resignation” as employees decided to change roles as the effect of Covid-19 regulations shifted work expectations and the opportunities afforded therein.
Reports from Microsoft (Microsoft Trend Index) suggested at least 40% of employees would change or leave their roles, and Bureau of Labor Statistics stated that 19 million worker’s quit their jobs between March 2021 and July 2021, a surplus of 7 million from the previous year.
What our workforces enjoy and how the companies react boils down to one key thing – retention. Top reasons in 2021 for people leaving roles are cited as burnout, lack of career options, insufficient benefits and not feeling valued, and return to the workplace (flexibility). It is reasonable to conclude that organizations continue to be at risk of losing their top talent – in the Limeade Report it stated that up to 28% of people who left their roles did not even have a new job to go to.
People analytics enables organisations to have the key insights into the pulse of the company to better understand how to help your existing employees remain more engaged and create a greater sense of belonging, rather than feeling like they have to seek it elsewhere. As companies look to change it is an opportunity for the organizations that address these challenges head-on and with integrity to drive competitive advantage.
How do organizations respond?
As businesses realize that using people analytics effectively is key to providing the best business outcomes, data and analytics enable HR to focus on the key areas that have the best impact. HR’s use of analytics will play a critical role in the strategic shift in organizational cultures moving forward, helping define a corporate plan to foster talent and build value.
There is no single approach for this, but some considerations are:
- Do we increase compensation?
- Offer flexible work choices (home, office, hybrid) compatible with our business?
- Can we make better hiring decisions?
- How do we keep our current employees from leaving?
- Can we get a holistic view of our workforce?
- Is there a way to assess if our training, compensation, flexibility programs are practical?