It’s hardly news that human capital is a critical business asset, but what you may not know is that you can actually measure it. People analytics is something that companies are copping onto as they realise that their people are their product, and if you want a product that stands up against the competition, you can’t compromise on quality (or let that quality slip through the cracks).For years, businesses have been analysing consumer data. Finally, they’re starting to implement analysis-based recruitment models to pinpoint, hire, train and keep the right people to build stronger, more reputable and more sustainable businesses.
In an article for Docurated.com, industry experts discussed the single biggest mistake they believe agencies make as they grow. At least six mentioned missteps in the hiring process, from recruiting the wrong people to ignoring attrition (or at least, not knowing how to address it), compromising on skills and finding the right people at a reasonable price.
“It has taken me years to build the stable, talented team that I have now,” says Michael Westafter of digital marketing agency Roger West. “[At first] I found great people, but I didn’t always hire for the right roles. For example, sometimes I hired a junior traffic manager, when what I really needed was a senior-level account manager. Other times I hired someone with really impressive skills, but they didn’t fit within our company culture.
“Now, we’ve got the right mix of talent, skills and creativity, and we work well together. And even though we’re smaller than before, we are able to get a lot more accomplished. Plus, we are much more profitable. The key to our success has been getting the right players on our team.”
How people analytics can improve the efficiency of your hiring processes
- Joshbershin.com explains how new research into people analytics “shows tremendous growth in this market, and a significant shift away from measuring HR toward a real focus on using people data to understand and predict business performance.”In People Analytics Market Growth: Ten Things You Need to Know, he explains how the discipline can provide a starting point for deeper analysis into employees’ happiness and engagement levels – a retention fundamental. But he goes further to delve into how people analytics can be integrated into your organisation as a whole to not only provide data, stats and reports, but also to integrate this information in a meaningful and tangible way across your business.
- People analytics can also show you the things your HR team is consistently missing, says McKinsey&Company. For example, the fact that high rates of attrition may be attributed to weak management, more so than salary or perks. Read People Analytics Reveals Three Things HR May Be Getting Wrong.
Action points: Getting started with People Analytics
- Assess your current HR team. Do you have the processes and tools in place for effective analysis?
- Pinpoint one person to drive your HR analytics efforts, and make it a KPI for this individual to ensure it gets done.
- Have monthly reporting sessions to keep track of your analytics efforts. The person in charge of this task should be responsible for setting up and running the meeting, as well as reporting back with concrete data and findings for analysis.
As a fairly young business that’s beginning to grow rapidly, staffing is one of our primary challenges.
I’d love to know what’s worked for you when it comes to upscaling – and upskilling – your business’s workforce. Share your insights with me in the comments, or share this post if you found it useful.