Workforce Analytics Functions
Workforce Analytics is a decision-making tool which helps decision-makers spot trends and identify problems while giving managers timely and accurate information. For HR managers in large companies employing thousands of people, reporting and analytics is of crucial importance. Workforce analytics can help companies make their recruiting processes more efficient, and recruit the right people at the right cost.
Workforce analytics can give management detailed information on processes within their HR department. Organizational mapping/charting systems can help planners and decision-makers by giving them the ability to choose the granularity of information needed, with interactive graphics and compatibility with leading Enterprise Resource Planning (ERP) applications.
How It Works
HR managers can design and implement better procedures for talent management, retention and succession by understanding the gap between demand and supply in their workforce numbers. This can be done by gathering employees’ information from their HR records, ERP solution and other standard business software–such as time and attendance, project management and accounting software.
A company can create forecasts and what-if scenarios with this data to understand how a change in the company’s activities can impact its HR department and vice-versa. If a new product or service is to be introduced, an estimate can be made of how many people are needed and what the costs will be.
Workforce Analytics supply the means to manage, gauge, and capitalize on workforce output, leading to a competitive advantage. It helps to develop workforce strategies and techniques for current and future use. This is done by examining current and historical figures to determine important aspects among certain variables in the workforce to conclude what needs to be done in order to take full advantage in the future.
Examples of commonly used Workforce Analytics:
- Simple and advanced staffing calculations: census of permanent employees, vacancies and contractors to illustrate workforce dynamics and centers of responsibility.
- Spans and levels metrics: counts, totals, averages, minimums and maximums to help efficiently structure the organization.
- Budget metrics: salary roll-ups, average salaries and highly compensated employee indicators allow for general workforce reporting and planning.
- Ethnicity and gender measurements including counts, totals and averages assist with managing diversity, compliance and regulatory issues.
- Performance analysis measurements that outline employee 'performance and potential' ratings and enable comparison to averages.
- Hierarchical analytics such as salary roll-ups (costs per department) or comparisons of span of control (number of employees reporting to a supervisor) are critical to identifying cost drivers.