Data RH: when data guarantees efficient personnel management
In a world where the urgent need is to save time while optimizing performance, HR data is fast becoming a crucial tool for companies and their HR managers.
To reap the maximum benefits, however, certain conditions must be met. So, what's the point? What are the objectives of HR data? And how can it be used?
We tell you all about it in this article co-authored with human resources consultant Laure Guérin-Taquet.
But what is HR data? Definition
HR data represents all the data concerning a company's employees. It includes a multitude of information such as :
- employee skills and skills to be acquired,
- past and future training courses,
- but also types of contract, etc.
HR data is a veritable gold mine when it comes to a company's employees.
By analyzing this data, companies can identify opportunities and patterns that will enable them to improve their human resources strategy.
A word from the expert
HR data is essential for optimizing human resources management. It enables better decision-making, notably through predictive analysis, which helps to anticipate recruitment needs or prevent turnover.
In HR, they are also used to personalize career paths according to employees' skills and aspirations, thus strengthening their commitment. What's more, compliance, particularly with the RGPD, is paramount in the ethical management of sensitive data.
Integrating technologies such as AI and machine learning into HR processes makes it possible to automate administrative tasks and extract strategic insights. This data directly influences HR policies, such as training, talent retention or performance optimization, and plays an active part in aligning HR objectives with overall corporate strategy.
What are the objectives of HR data?
Used skilfully, HR data can be a major asset for the company. By collecting this data, the company can reap numerous benefits:
- Improve well-being in the workplace,
- Improve recruitment,
- Optimize employee performance and training,
- Determine the best strategy to adopt,
- Reveal any weak points in the company,
- Highlight strengths,
- Improve HR department organization, etc.
How can HR data be used?
In decision-making
Your HR data can be used to anticipate future situations, opportunities or problems. This would enable the company to avoid crisis situations and make the best choices.
It can also enable the company to take stock of its performance and productivity, and thus optimize them. All this information will enable human resources to make the best possible decisions.
👉 Example:
In a technology company, HR data has identified that the best-performing employees are those with stronger technical skills as well as a strong team spirit. These new criteria can then be integrated into the new recruitment process, improving the quality of hires and consequently the company's performance.
Improving the employee experience
By gathering information about job satisfaction, employee performance and commitment to the company, HR data helps identify where improvements are needed.
👉 Examples:
- improving the recruitment process: by sorting and selecting the best candidate profiles, HR data simplifies the recruiter's work and saves a huge amount of time.
- how to build employee loyalty: identify the needs of each employee (training, working conditions, remuneration, flexibility, etc.) and develop the best performers, thus reducing the risk of departures or absences.
In optimizing HR and employee productivity
It enables human resources to identify employees' performance and behavior when faced with a task. In this way, the company's work processes can be optimized.
👉 Example: Collect success rates, mistakes made (and therefore the need to improve certain skills) or customer feedback. The data helps to measure the company's productivity.
In concrete terms, how do you implement an HR data strategy?
Implementing HR data is a process that requires a methodical approach, as well as the attention of all company staff and management, to ensure that it is used effectively. Here are a few tips to ensure the best use of HR data:
#1 Define your objectives
What do you hope to achieve by using HR data?
Identify the goals you want to achieve, as well as your company's HR needs.
👉 Example: If a company observes a high employee turnover rate within its organization, its goal is going to be to reduce it or improve its recruitment process.
#2 Identify the data you'll need
What data will you need to reach your objectives and measure their achievement?
Determine :
- what data you need to collect,
- the sources you need to draw it from,
- and which indicators to use.
👉 Example: Using the same example, if the company's objective is to reduce turnover, it will select indicators such as departure rate, reasons for leaving and employee satisfaction rate.
#3 Collect, store and analyze data
What system are you going to use to collect and store this data?
It's vital to invest in the right tools to collect, store and analyze data.
👉 Example: All this data can be collected and stored from the company's human resources management software such as HRIS, then analyzed by HR using a dashboard.
We'll come back to HR data analysis later in this article. 🤫
#4 Train and raise team awareness
To ensure proper use of HR data, it's vital to explain the concept to the main people involved, namely your HR department, as well as to all teams.
👉 Example: By organizing staff monitoring and satisfaction surveys.
#5 Determine the effectiveness of HR data
What impact does the use of HR data have on company performance?
Implementing an evaluation process is essential in order to know how effective HR data is in real time, and to make any necessary changes quickly. It will also enable strategies to be adjusted according to the results of these evaluations. ✅
👉 Example: let's take the same example concerning your employee turnover rate. Thanks to the data you've collected, you've implemented a strategy to reduce this rate. You can measure the effectiveness of the data you've collected by comparing turnover rates before and after the implementation of your new strategy.
How is HR data collected, and where?
There are many different ways of collecting HR data, so it's up to you to select the one that's best suited to your business.
Here are a few data sources to consider:
- The Human Resources Information Management System (HRIS), which collects all administrative data: surname, first name, date of birth, position, etc.
- Working time management tools, which collect data on hours worked, vacations and absences.
- Recruitment tools, which gather information on potential candidates: cover letter, CV, LinkedIn profile, etc.
- Satisfaction surveys, which provide information about employees' well-being and commitment to the company.
💻 Remote software, for example, is one of the best in the field of HR management and development. Thanks to its platform and team of experts available 24 hours a day, you can centralize HR data for your international teams: find, hire, pay and manage talent in a single tool!
HR data analysis
To make the best use of HR data, analysis is essential.
To get off to a good start, it's essential to define your objectives, so as to collect only the data that is relevant to achieving them. The analysis will then logically begin by collecting the data you have selected, and correcting it to ensure its accuracy. Yes, your analysis will be flawed if you haven't chosen the right data to analyze in the first place! 💡
Once the data has been collected, using a dashboard makes it easier to visualize as well as interpret. It will provide an overview of all indicators: HR staff will more quickly identify potential problems or opportunities for improvement.
Through graphs, tables and indicators, it is possible to observe not only the company's human capital, but also its performance and productivity.
📈 Example of an HR dashboard :
What does the future hold for the HR function?
HR data plays an increasingly important role in companies' personnel management. It provides crucial information on employee and company performance, enabling simplified strategic decision-making.
However, this trend towards automation with new technologies needs to be qualified. Indeed, the human resources professions are strongly impacted by this automation. HR departments will need to be highly adaptable to these new trends, in order to meet the new challenges... without forgetting the human element!
Article translated from French