Human resources personnel work closely with organisational staff – its key stakeholders, associates and others. They are entrusted with the role of looking after the human capital and ensuring that they perform as per expected levels. The Human Resource Management (HRM) department focuses on recruiting new staff members, their training, looking after needs demands and solving any internal disputes that might develop, offering remuneration and benefits and lastly, firing.
These different roles and responsibilities require an in-depth understanding of its key concepts, practices and other aspects. HR managers hugely influence the success and growth of their organisations since they rope in employees who can help an organisation achieve its objectives. HR managers are involved in dealing with the most invaluable resources an organisation possess- its people. They need to manage the staff members and display empathy, trustworthiness, and transparency with their employees for successful results.
HR and Analytics: Revolutionising People Management
As with different sectors today that are changing at a fast pace, the same goes for HR. With recent technological advancements and innovations, the HR field has transformed towards an analytically driven paradigm for addressing, assessing and reviewing resumes, vetting potential applicants, handing out bonuses and other perks, and several other tasks. The amalgamation of HR with analytics can bolster the overall workflow of organisations and render with their precise crystal-clear analysis for different processes.
However, prior to moving into the utilisation of analytics, upcoming HR managers need to build a strong foothold over its rudimentary elements. Executives must have a grip over critical subtleties that conform to the HR domain and further these concepts. The certification course for HR offered by premier universities can help professionals understand its core competencies. Moreover, HR analytics certification from XLRI provides insights into the modern pathway for this sector.
What Role Does Analytics Play in HR?
The current digitalised world relies heavily on data-driven mechanisms and techniques for conducting business and offering solutions to customers. The application of analytical systems in the HR environment is heavily transforming corporate junctures today. The introduction of analytics has resulted in better insights, infographics and overall view over different operations related to human capital. Enrolling for a certification course in HR will guide young managers with other prerequisites they undergo while developing strategies.
HR and analytics have been a significant breakthrough in changing recruitment processes, analysing and evaluating a candidate’s credentials regarding different metrics. Incorporating analytics has given a new meaning to human resource management and makes it quite different from general managerial job roles.
Data-driven decision making has become the basis for HR sectors today and helps businesses take tactful measures. HR analytics renders specific metrics that help streamline tasks and give out a plan for money and other resources spent on each new hiring, training, turnover rates, etc. The HR analytics certification from XLRI provides credible theoretical and practical resources for applying selective analytical models in corporational projects and assignments.
These metrics and some others are listed below:-
- Offers Revenue Insights
The revenue per employee metric gives the average revenue generated by each organisational member. It gives a great perspective over how every employee contributes to corporational economic growth and brings in good revenue turnovers.
Revenue per employee is obtained by dividing a company’s profits earned in the last months by the total number of employees a particular firm possesses. This metric is vital in highlighting the efficiency of an organisation in generating revenue generation via employees.
- Helps in Understanding Training Expenses
Training expenses per employee gives the measure of efficiency for making employees competent in their roles. It is obtained by dividing total training expenses by employees who are undergoing skill-development programs.
Efficiency rates should be higher, which helps determine the skill-sets, training particulars of the company that leads to positive results. A poor efficiency rate requires companies to re-evaluate their training procedures.
- Collects Data about Job Offers
The offer acceptance rate gives insights about the accepted job offers annually or half-yearly. It’s a critical metric that describes the credibility of job postings, no of applicants who apply for a role and other factors.
Its calculated by dividing accepted job offers with a total number of jobs posted within a specific period. A higher value of about 85% or more indicates a good ratio for job offers, while lower values stress on the need for redefining a company’s talent acquisition strategy.
- Identifies Loopholes in Organisational Employee’s Experience
Voluntary turnover rate is a valuable metric deployed by HR analytics software for understanding the number of employees that leave companies voluntarily. There could be several reasons for leaving- low income, lack of coordination within teams, long-standing disputes with fellow co-worker and other reasons.
The voluntary turnover rate is calculated by dividing the total number of staff members left voluntarily with the sum of employees within a firm. It helps in identifying gaps and loopholes within employee experiences that leads to voluntary leaving of employees.
As seen from the points mentioned above, HR analytics is a great tool that helps in reading between the lines and provides meaningful insight through mathematical calculations. HR managers need to utilise analytical software for each stage of employee development and ensure that proper tracking and progress checking is maintained.
The learnings from the certification course for HR come to the fore while leveraging analytical software in enriching employee experiences. With the intel gathered through HR analytics certification from XLRI, professionals can develop robust strategies for better human capital management.
As seen from the article above, the inception of analytics in the HR field renders heaps of benefits for managers. Analytics plays a titular role in taking HR departments to new heights by offering metrics for calculating revenues, getting insights about training expenses, data about job offers, and identifying gaps that lead to unsatisfactory employee experiences.
Therefore, it’s essential for budding HR managers to get their basics covered in this domain. The certification course for HR provided by a credible source can help learners understand its dynamics. The HR analytics certification from XLRI exposes managers to different concepts of analytically driven data gathering that helps in understanding principles, features and functions of HRM.