Your people are your most vital asset, so collecting data about them is a smart business move.
But collating statistics on your staff isn’t enough. People Science is emerging as a new focus for business leaders, as organizations start to go beyond simple HR metrics and apply data science to their people analytics, to increase workforce visibility and build great workforce experiences.
People Science is an ongoing journey, with a multitude of topics, tools and techniques available. However, every organization needs to have the right building blocks in place to build a strong foundation for People Science; it starts with having accurate and relevant people data in a single system of record, that you can use to answer the most common and critical questions that your HR team have.
There’s no one-size-fits-all approach but here’s some fundamental people analytics to get you started on your People Science journey.
1. Employee retention
High staff turnover is costly for any business, but more importantly, there may be very good reasons for this, and turnover analytics can provide an organization with valuable insights into potential causes.
This metric can reveal issues with specific departments, managers, job functions, and hiring processes. If one team has a particularly lower turnover rate you can analyze the data to identify why this is the case, and apply lessons to other departments.
For example, the team may receive more recognition or training, aiding engagement and performance levels. Or, perhaps it’s down to the coaching from a specific managers or a stronger selection process.
Whether its 20% of your top talent leaving, or 20% of your lowest performing employees, these analytics can give you insights into why this is happening, enabling you to bring more of the best talent in.
2. Absence rate and patterns
This is a good statistic to analyze on a company-wide scale, as well as per department, per job function and per month.
Understand absence levels by looking for departments, job roles or months with unusual patterns. Are you doing enough to monitor your staff’s wellbeing? Is there a strong process in place for reporting sick days? Is a team with low absence getting more support and coaching?
3. Gender pay gap reporting
From April 2018, all organizations in the UK with 250 or more employees will have to publish information about their gender pay gap results on their websites. Strong reporting and analytical capabilities are required to produce this report; by having the right data and record system in place, this will ensure you can achieve legislative compliance with minimal effort.
Although commentary on the gender pay gap results is not required, organisations should consider adding a narrative to help employees and the public understand their results, particularly in cases where gender pay gaps seem significant, Xpert HR advises.
Commentary could highlight an organization’s strong performance relative to its competitors thereby making it a more attractive place to work for prospective employees.
4. Performance reporting
Monitoring and reviewing your employees’ performance statistics regularly will give you insight into high performers, which can help ensure you have high achievers in the right place, at the right time, doing the right job.
It can also help with succession planning and career development, highlighting the high-potential workers that need to be fast-tracked through the ranks, and identifying critical roles that require successors, well before its too late.
Equally, it can provide insight into staff that may be struggling or not meeting their targets. It will highlight where additional training or mentoring might be beneficial, or performance management might be required.
5. Length of service
On its own, length of service tells you where you longest serving employees are – useful for understanding potential reasons for retention and engagement.
Combined with other metrics, patterns can be identified by measuring length of service against performance levels, salaries or performance levels.
These are just a few basic essentials that will benefit most businesses. However, collecting data alone will not bring business benefits. Its what you do with that data that’s crucial.
And this is just the start of your People Science journey – if you can use it to identify and predict trends, and make iterative changes as a result, then you’re that much closer to understanding your people, and building great workforce experiences so that they can do their best work.
Sage People enables HR and people leaders to achieve greater visibility and insights into their workforce, by providing a single system of employee data, advanced analytics and powerful visualization capabilities. Want to find out more about how your organization can make smarter people decisions? Request a demo now.