I've been hearing the term "people analytics" a lot recently. If you don't already know about it, look out: You're about to see it everywhere.
The use of employee-related data has grown significantly in recent years and shows no signs of slowing down. According to a study from Deloitte, 84 percent of those surveyed view people analytics as important or very important, making it the second-highest ranked human capital trend.
Why are people analytics critical to business success? This data has several benefits, including measuring productivity and employee engagement, determining whether or not HR investments are worth the spend, and more. Here are two crucial examples of people-related data your team should be collecting and analyzing:
1. Hiring Data
The unemployment rate is at a near-record low, making the hiring market competitive for employers. To ensure you're hiring the best team possible, it's important to continuously measure what's working and what's not with your hiring process -- and identify next steps for improvement.
For each day you have an open role on your team, you spend money on hiring and recruiting costs, and lose profitability from decreased productivity. This means you need to be measuring hiring process data: your average time to hire, where candidates are getting held up in the hiring process, which applicant sources are driving the most quality candidates, and whether or not certain managers are missing steps in the hiring process.
Armed with this data, you can outline actionable next steps to decrease your overall time to hire without sacrificing the quality of your hires.
2. Employee Satisfaction Insights
About 20 percent of top-performing employees face burnout, and burnout is just one example of how employee satisfaction might take a hit. And dissatisfied or disengaged employees are less likely to be productive or stay with your team for the long term. In fact, according to Gallup, disengaged employees cost the U.S. economy up to $550 billion in lost productivity each year.
Since not all dissatisfied employees will proactively share complaints with their managers or the HR team, every business needs to have a process in place to measure employee satisfaction. Simple ways to do this include an employee suggestion box and an anonymous employee satisfaction survey.
Both are great ways for business leaders to measure the organization's employee satisfaction as a whole. Anonymous survey data can show key trends related to what's working and where employees are dissatisfied, so you can continue improving your people operations to meet the needs of your employees.
Beyond company-wide surveys, managers should regularly check in with each team member to see how everything is going and collect feedback on anything employees might be dissatisfied about. By collecting feedback and taking steps to improve anything employees are dissatisfied with, employees will feel valued and be more excited to keep contributing to your team. This will ultimately lead to increased productivity and profitability at your business.
These are just a couple of many ways you can measure and act upon people analytics. How are you making the most of the employee data trend?