Importance Of Analytics In Employee Management

Importance Of Analytics In Employee Management
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How Should The HR Department Use Analytics In Decision

Of all the departments and teams in an organization, the Human Resource (HR) department is the one that is given the least importance, whereas it is the most important one. They get minimal attention and this happens mainly for two reasons- They are like a doctor, you would never want to go to one or need one. When you’re called into the HR office, you know it’s bad news. Because if it was good news, you would receive it from your manager, not the HR manager. The second reason- The HRs are considered as old-fashioned and soft. We assume these things because we have been told this for way too long. They are not considered important assets as they don’t drive up the sales for a company or bring them big bucks.


The use of HR analytics changes all this. Nowadays, with the use of the latest technology and analytics, the HR department has become one of the most important and efficient departments. Human Resources are traditionally known for collecting and saving vast data that includes information about the company as well as all its existing and potential employees. But handling paramount data manually is now impossible. Thus, the use of analytics by the HR department is a complete game-changer now. The main question is how organizations can benefit from analytics, and how HR can put it to their best use. The top ways are-


  • Attracting Talent

It is a highly competitive world and organizations are doing all they can to attract top-skilled candidates and soar better than their competitors. Since there are a plethora of candidate applications, companies are really struggling to filter them out and find the one that is best-suited for their organization. This dilemma should be resolved as studies have shown that a bad hire can cost the companies an employee’s 30% of annual earnings.


Managing the candidate applications in the traditional way, i.e, annually, is not possible as any company does not have the manpower to analyse so much information at one time and also make sure that the result is positive. This is where HR analytics take control. Integrating good HR software related to acquiring talent can help an organization in filtering out many forms at a time, and short-listing the candidates that are better suited for the role. Without this, it would take the HR team forever to do this, and the result might not be precise too.



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  • Training & Onboarding

It does not suffice just to hire the right candidate. It is essential to introduce them to the company’s work culture, and requirements to ensure that the employee’s goals are aligned to that of the company. Training every new hire can take up a long time of the HR and also resources. Using an online training and onboarding program can help them train many new hires at the same time and let them know what they are expected to be doing and how.


Also, the onboarding process can become tedious for both, the HR manager as well as the employee. With new recruitment software, the employees can directly upload all the needed documents on the portal without any hassle.


  • Employee Performance

Analysing the employees’ performance is one of the most important roles in using analytics. It helps to evaluate all of the candidates separately and also comparing them through their growth and success curve. It can help the managers in seeing which of their employees are working hard and which are lacking somewhere. They can use this to help the weak employees give feedback and help improve the skill-sets in which they are lacking. Thus, the use of analytics in the employees’ performance evaluation not only helps the employee but the company too.



  • Rewarding

Recognition and appreciation are something that not all companies and are good at. But what they need to realize, is just like them, their workers are also working equally hard towards the company’s growth. Analytics can help in evaluating which employees deserve rewards. Skilled and experienced employees feel validated and the new hires feel encouraged to work harder and give their best. In the end, the entire company benefits as it boosts the overall confidence.


It is then that the employees feel that they are in the right place where their efforts are recognized and appreciated. The best way to do it is to create an event out of it. Collect a list of all the top-performing employees from their managers and then hold a conference to announce the winners. Rewards are to employees what medals are to athletes, a significant symbol of the triumph of their achievement.



  • Retention

Giving high-quality training not only helps the employees but the business as well. Studies show that employees who don’t receive proper training are bound to quit the company within the first year itself. HR analytics helps in employee retention, which results in low turnover. Implementing online training is an innovative way to keep the employees’ morale high and motivating them to stay in the organization for the long haul. Additionally, if employees receive proper training, they tend to have more job satisfaction. Reducing the turnover by ensuring employee retention by giving the company more credibility.


Losing employees due to inadequate training and rehiring new staff creates a lot of unnecessary tension and flux in the company. This can also undermine the company’s worth and all the experienced employees end up flowing the coup. Finding the potential candidate who will perfectly fit into the given job description is crucial for a company’s success and growth.



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Importance Of Analytics In Employee Management

The outdated and tedious methods like screening based on a resume, telephonic interviews, face-to-face interviews, can become very time-consuming and inefficient. It often makes the hiring process lengthy and expensive. Thus, with the evolving world, the companies are evolving too, and are using candidate assessment tools to improve the recruitment process.


Candidate assessment tools are quick, fun, and easy to use for any hiring manager, recruiter as well as candidate. If recruiters follow the traditional methods of recruitment, they end up using their valuable time that could have been utilized for other productive tasks such as strategizing the company’s goals.


Additionally, after screening, they have to ensure that both the interviewer and the interviewee are available at the same time for the interview. Even if one cancels, rescheduling becomes another tedious task. Thus to ease the process, candidate assessment tool utilization is a must in every company. Integrating it has many benefits. Some of the important ones are-


  • Provision of ready to use skill-sets

Every job role requires a different set of skill sets, and perusing through every candidate’s resume to see which one will fit perfectly into that job description becomes a very hard task for the recruiters. Whether an organization needs to employ one candidate or hundreds, using candidate assessment tools lays out ready-to-use skill tests that a recruiter can forward to every employee applying for that role. The test will easily rule out the candidates which don’t possess the skill sets and short-list the ones who do.



  • Enhances candidate experience

When a candidate is applying for a job in any organization, they expect the recruitment process to be smooth as they are thinking about joining the company. If the recruitment process becomes tedious for the candidate, it creates a negative impact on the company’s credibility. Moreover, the candidate might even back out thinking that the company is not up to the mark. Candidate assessment tools provide the option for every candidate to leave feedback.


This helps the company in knowing where they are excelling and where can they improve. Additionally, it also makes the candidates feel valued as they feel that their opinion is important to the company. This helps in strengthening the bond between the candidate and the organization. Once the candidate gets selected, their happy experience might even lead them to spread to the positive feedback of the smooth recruitment management system to their friends and ex-colleagues, that results in getting more referral, and thus benefits the company.



  • Saves time

Everyone knows that when the time to hiring a new candidate comes, it affects the company in several ways. But of all, losing productivity and revenue hampers the company the most as the vacant positions end up staying empty for many days or even months. Due to lengthy processes, candidates who are perfect for the role may end up losing interest as they want to join right away, and a lengthy recruitment process doesn’t bode well with such candidates and they end up taking up the offer that is available to them at the earliest.


Studies have shown that candidate assessment tools can reduce the recruitment process period by 50%. Thus, not only does it improve candidate experience, but also saves time for the recruiters and helps them in investing the saved time in other productive work.



  • Prevents cheating

Candidate assessment tools provide secure online and remote proctored tests so that the recruiters can conduct the assessment anywhere, anytime. There is no supervision required as the tools entail window violation, user-based access control, and image proctoring.



  • Bias-reduction

Bias is not an uncommon event that occurs during recruitment. Be it age, gender, religion, nationality, etc. many recruiters have a bias that ends up reflecting in their process. By using candidate assessment tools, bias can be reduced to a large extent as the candidates are automatically shortlisted on the basis of their skills and their talents and not based on any bias factor. Thus using candidate assessment tools is very crucial in removing unwanted bias from the recruitment process.




With its accurate predictions and deep insights, using HR analytics can do wonders for a company. As a matter of fact, it has become the new normal in workforce management. The burden of the HR department has lessened significantly, giving them more time to work towards contributing to higher goals and targets of their company. Using analytics will help the companies and their employees in becoming more efficient and productive.



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