Report shows increase in measurement, but executives still want more from HR
HR teams are putting a greater focus on collecting employee data that play a role in business success, according to a report.
For example, nearly six in 10 (56 per cent) HR teams are now measuring employee headcount, up from just 40 per cent two years ago.
And 55 per cent of HR teams are now measuring labour cost per employee while 53 per cent are measuring cost per employee — up from 41 per cent and 35 per cent, respectively, a couple of years ago, finds the report from Sage.
This trend is also true when it comes to other data related to doing business:
|
Date |
Percentage of HR teams measuring it now |
Percentage of HR teams measuring it two years ago |
|---|---|---|
|
Employee productivity rates |
52 per cent |
23 per cent |
|
HR to full time employee ratio |
52 per cent |
41 per cent |
|
Cost per hire |
51 per cent |
37 per cent |
|
Training rates |
51 per cent |
34 per cent |
|
Employee satisfaction rates |
51 per cent |
27 per cent |
|
Turnover rates |
51 per cent |
36 per cent |
|
Revenue per full time employee |
50 per cent |
32 per cent |
“Successful HR leaders use analytics to be more strategic,” says Sage. “Successful HR teams are not just collecting data, but analysing it, and acting on it.”
However, just over half of HR and people leaders collect basic metrics like headcount, it says.
“Encouragingly, however, the third, fourth, and fifth most collected data points were labour cost per FTE, cost per employee, and employee productivity rates — demonstrating that many HR teams are increasingly aligning people metrics to business strategies and profitability.”
Predictive analysis can lead to a stronger employee retention strategy, Nick Curcuru, vice-president of advisory services at Privitar, a privacy and data analytics provider in Dallas, previously told Canadian HR Reporter.
Data collection not living up to executive desires
Despite the increase in data collection, HR teams are far from being able to fully deliver the level of data collection that executives desire, according to Sage’s survey of over 1,000 HR leaders across seven countries, including Canada.
|
Type of data |
Percentage of executives who want HR teams to measure it |
Percentage of HR teams measuring it now |
|---|---|---|
|
Headcount |
94 per cent |
56 per cent |
|
Employee productivity rates |
94 per cent |
52 per cent |
|
HR to full time employee ratio |
93 per cent |
52 per cent |
|
Cost per hire |
93 per cent |
51 cent |
|
Training rates |
93 per cent |
51 per cent |
|
Employee satisfaction rates |
93 per cent |
51 per cent |
|
Turnover rates |
91 per cent |
51 per cent |
|
Revenue per full time employee |
91 per cent |
50 per cent |
|
Labour cost per employee |
91 per cent |
55 per cent |
|
Cost per employee |
91 per cent |
53 per cent |
People analytics is a “key differentiator” for employers, according to a previous report.
Why is data collection important to an organization?
However, executives must also improve their data skills in 2024, according to Allison Arzeno, CEO of Assurance IQ.
“Foundational understanding of data will become as central to C-suite roles as the ability to read a P&L statement,” she says in a Forbes article.
“In a truly data-driven culture, executives’ gut instincts' are validated before they are executed. Even better, people bring data to the table before they even propose an idea. This levels the playing field and empowers voices from all different levels and departments to participate in decision-making,” she says.
Arzeno adds: “When you understand your data and your business operations, you’ll have unique insight into where AI can make a difference—and where it continues to need a human’s helping hand.”
Employers can use data and analytics to entice workers back to the office, one expert previously told Canadian HR Reporter.
