HR analytics software helps make strategic decisions with greater insight and accuracy.
Human Resources metrics have always been linked to other key performance indicators such as revenue and profitability. However, applying measurements systems, including Balanced Scorecard, to people management is always a challenging task.
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HR is not usually viewed as a source for hard measures. In order to analyze the return on all workforce investments, such as recruiting, developing capabilities, compensation and directing behavior, HR function should understand the business challenges of its entire organization.
HR professionals must understand the organization’s business plans and the operational, financial and customer-facing goals they are expected to achieve. Then they should associate these goals with the existing workforce metrics.
In many cases, HR information is scattered, which leads to non-systematic hiring, training, performance management and compensation processes. Detailed HR measurement data is essential these days, as globalization, tight labor markets and an aging workforce are causing many businesses to more closely inspect the performance of their largest investment: the workforce whose compensation represents 60 percent to 70 percent of the general expenses.
New Business Intelligence technologies offer HR departments the ability to invest in Human Capital Management analytics solutions designed to yield the insights essential for making informed decisions on HR.
Business Intelligence allows HR departments to become a strategic asset within the organization. It helps boost the efficiency within the HR department and make key decisions around recruitment, planning, and budgeting to support the strategic goals.
Business Intelligence systems help HR professional access information from data warehouses and other sources, structure analyses to find areas of improvement, and communicate the results in a way that is convincing to others.
HR function in the organization is not limited by administrative issues. HR department should use a fact-based systematic approach to solve business problems and offer a longer-term viewpoint in order to adjust to environmental changes. The key task of the HR professional is to proactively produce solutions to strategic business issues facing the organization.