Almost half of UK businesses are failing to use insights from analytics in their human resources operations, according to research from MHR Analytics.
A YouGov survey of 500 HR leaders found that 44% do not have a main focus on HR analytics – technology that uses ‘people data’ to solve business problems.
HR analytics is all about helping HR departments to manage their people in a more efficient way, MHR Analytics explained. It taps data such as payroll and absence management, and business information such as operational performance data, to helps businesses answer questions such as:
- What characteristics do top-performing employees have?
- What ROI is gained from training and development programmes?
- What does a truly successful leader look like?
When asked what was preventing their teams from using analytics, 35% said it was not having the right knowledge or skills within HR. Almost a third (30%) said the biggest barrier was the lack of quality data.
However, those embracing big data are seeing business advantages, MHR Analytics found. Four in ten (40%) use it for regular operational reporting, 29% for strategic or financial workforce planning, 23% for improving the accuracy and simplicity of reporting, and 14% use it to predict employee retention, compliance and workforce growth.
Commenting on the findings, Dr Max Blumberg, founder of people analytics think-tank the Blumberg Partnership, said: “Gaining insights into the performance of the workforce and associated resources enables faster, more accurate decision-making and delivers savings to the bottom line.
“The YouGov research conducted by MHR Analytics shows that many UK businesses are failing to equip HR professionals with the analytics tools they need for high quality people and process management. At a time when analytics can play a vital role in managing salaries, payroll and performance measurement, investing in technologies like this can help companies gain the competitive advantage.”
In a survey for Osborne Clarke’s Next-generation connectivity report, four out of five senior executives said they see data analytics as a source of new opportunity between now and 2023. To learn more, download your copy now!