HR Data: when data guarantees efficient personnel management
In a world where the urgent need is to save time while optimising performance, HR data is fast becoming a crucial tool for companies and their HR managers.
But to get the most out of it, certain conditions need to 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-written with human resources consultant Laure Guérin-Taquet.
But what is HR data? Definition
HR data is all the data relating to a company's employees. It includes a wealth of information such as :
- employee skills and skills to be acquired
- past and planned training,
- types of contract, etc.
HR data is a veritable goldmine when it comes to a company's employees.
By analysing this data, companies can identify opportunities and models that will enable them to improve their human resources strategy.
A word from the expert
HR data is essential for optimising human resources management. It enables better decision-making, particularly through predictive analysis, which helps to anticipate recruitment needs and prevent staff turnover.
In HR, they are also used to personalise career paths according to employees' skills and aspirations, thereby strengthening their commitment. What's more, compliance, particularly with the RGPD, is crucial to the ethical management of sensitive data.
The integration of 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 optimisation, and plays an active role in aligning HR objectives with the company's overall strategy.
What are the objectives of HR data?
Used skilfully, HR data can be a major asset for a company. By collecting this data, companies can reap a number of benefits:
- Improving well-being at work,
- Improving recruitment,
- Optimising employee performance and training,
- Determining the best strategy to adopt,
- Reveal any weaknesses in the company,
- Highlight strengths,
- Improve the organisation of your HR department, etc.
How can HR data be used?
In decision-making
Your HR data can be used to anticipate future situations, opportunities or problems that may arise. 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 optimise them. All the information gathered 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 and thus improve 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 to 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 retain staff: identify the needs of each employee (training, working conditions, pay, flexibility, etc.) and develop the best performers, thereby reducing the risk of staff leaving or being absent.
Optimising HR and employee productivity
It enables human resources to identify the performance and behaviour of employees when faced with a task. This makes it possible to optimise the company's work process.
👉 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 practical terms, how do you set up an HR data strategy?
Implementing HR data is a process that requires a methodical approach and the attention of all the company's employees, as well as management, to ensure that it is used effectively. Here are a few tips to ensure that HR data is used to best effect:
#1 Define your objectives
What are you hoping to achieve by using HR data?
Identify the goals you want to achieve and the HR needs of your business.
👉 Example: If a company observes a high employee turnover rate within its business, its objective is going to be to reduce it or improve its recruitment process.
#2 Identify the data you need
What data will you need to achieve your objectives and measure their attainment?
Determine :
- what data is relevant to collect
- the sources from which you need to draw it,
- and which indicators to use.
👉 Example: Using the same example, if the company's aim is to reduce its staff turnover rate, it will select indicators such as the departure rate, the reasons for leaving and the satisfaction rate of its employees.
#3 Collect, store and analyse this data
What system are you going to use to collect and store this data?
It will be vital to invest in the right tools to collect, store and analyse the data.
👉 Example: All this data can be collected and stored using the company's human resources management software, such as the HRIS, and then analysed by HR using a dashboard.
We'll come back to analysing HR data later in this article. 🤫
#4 Train and educate teams
To ensure that HR data is used appropriately, it's vital to explain the concept to the key people involved, i.e. your HR department, as well as to all the teams.
👉 Example: By organising staff monitoring and satisfaction surveys.
#5 Determine the effectiveness of HR data
What impact does the use of HR data have on the company's 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. This will also enable strategies to be adjusted based on the results of these evaluations. ✅
👉 Example: let's take the same example concerning your employee turnover rate. Using the data you've collected, you've put in place 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 ways of collecting HR data, so it's up to you to choose the one that's best suited to your business.
Here are a few sources of data 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, leave and absences.
- Recruitment tools, which gather all the information about potential candidates: covering 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 its team of experts available 24 hours a day, you can centralise the HR data of your international teams: you can find, hire, pay and manage talent in a single tool!
HR data analysis
To ensure that HR data is used effectively, it is essential that it is analysed.
To get off to a good start, it is essential to define your objectives so that you collect only the data that is relevant to achieving them. The analysis will logically begin by collecting the data you have selected, and then correcting it to ensure it is accurate. Yes, your analysis will be flawed if you haven't chosen the right data to analyse in the first place! 💡
Once the data has been collected, using a dashboard makes it easier to visualise as well as interpret. It will provide an overview of all the indicators: HR staff will be able to identify potential problems or opportunities for improvement more quickly.
Graphs, tables and indicators can be used to monitor the company's human capital, as well as 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 when it comes to managing their staff. It provides crucial information on the performance of both employees and the company, making it easier to take strategic decisions.
However, this trend towards automation with new technologies needs to be qualified. Indeed, the human resources professions will be heavily impacted by this automation. HR departments are going to have to be highly adaptable to these new trends if they are to meet the new challenges... without forgetting the human element!
Article translated from French