The human resources (HR) department is a vital sector for any company, as it is the people who ensure the survival and performance of organizations. The current technological advancement has brought about changes in this area, altering processes and working conditions, increasing the demand for better employee qualifications, and creating a greater need to retain talent.
Given the numerous challenges posed to the HR sector, it is evident that people management based on assumptions and intuition is a thing of the past. Today, a significant ally for this sector can be investing in a human resources management system. In this article, explore how Business Intelligence (BI) can play a role in your company’s HR.
BI in People Management through Turnover and Talent Retention Calculation
Turnover calculation is performed to measure the employee turnover within a company. High employee turnover is never ideal, as the influx and outflow of people can be costly and damaging. To avoid this scenario and maintain talent retention, companies need more accurate selection processes and proper monitoring of employee performance.
In this regard, BI comes into play to minimize the margin of hiring errors and provide insightful data on the difficulty of retaining talent, enabling the company to take directives that solve the issue of high turnover.
Firstly, BI helps the HR department deeply understand the company, allowing this sector to have a well-defined profile of the type of employee it is seeking. After establishing more objective selection criteria, BI works through tools that provide a holistic view of candidates, including their behaviors, personalities, interests, etc. This way, selection processes are optimized, and the likelihood of employees fitting in and staying with the company increases.
Measuring Employee Performance
To analyze your company’s human capital, it is necessary to know your employees and their performance well. Through BI, it is possible to compile and organize data that allows correlating employees with profits. In other words, the company becomes capable of knowing, in monetary terms, how much each employee produces and how much they cost.
In addition to indicating the best and worst performances, a good BI solution can categorize professionals into certain patterns, indicating to HR what qualifications and skills these individuals possess and/or can develop. Thus, the department can make better talent reallocations. Moreover, it becomes easier to identify or incorporate meritocracy within the company, create more robust career plans, and promote successions that are more aligned with the company’s objectives.
Conducting Salary Surveys
Through predictive analyses, BI can also handle financial issues associated with the HR sector.
Also, via data projections promoted by BI, your company can predict changes in payroll, as well as identify possibilities for salary increases. This enables better financial control and organization.
In summary, through BI, your company can achieve better people management, consequently improving overall company performance. BI allows the optimization of talent retention strategies, facilitates the recruitment and evaluation of professionals, provides quicker feedback to the team, increases collaboration within the company, ensures better alignment between employees and their goals, accelerates decision-making processes, and much more.
Interested in acquiring a human resources management system and enhancing your team’s administration? Contact us!
