How HR analytics can transform the workplace

Managing modern workplaces has become much more complex than at any previous point in history. Not only do people professionals have to negotiate their teams’ flexible working arrangements, a mixture of in-office, hybrid and remote workers, and neurodiverse colleagues with differing needs, but they also have to do all of this while maintaining obligations to the business’s growth. What’s more, the goalposts are constantly moving, and technology is advancing at a rapid rate, making it harder to spin those plates.

This is where HR analytics, HR data, and comprehensive reporting come into play. This involves presenting data related to various aspects of human resources, such as absenteeism rates, productivity, and employee wellbeing. It can also dig deeper and provide insights into historical trends to better help organisations understand their workforces.

Having this essential data gives HR optics across the entire organisation and that can help teams make informed decisions while getting leadership support for any changes that are required. It also means that HR can spot any changes in the mood of the workforce, particularly with remote and hybrid workers, as well as stay abreast of any future trends or organisational challenges playing out.

How can next-gen data and reporting help?

HR data and reporting have formed the foundation of modern workforce management in recent years, moving the needle in terms of fine-tuning HR processes. Where traditionally data gathered, analysed, and interpreted was perhaps not used to its fullest potential, today, these vast amounts of information on employees and workplace trends can tell HR everything they need to know about the organisation in areas like recruitment and performance metrics to engagement levels and turnover rates.

According to a 2022 report by the Chartered Institute of Personnel and Development (CIPD), 71% of organisations in the UK use HR analytics to some extent, with 22% utilising advanced analytics capabilities. This growing trend highlights the increasing recognition of analytics as a strategic asset – and one that HR needs to include in its arsenal of management tools.

In fact, data is everything for Senior Management Teams in organisations. Having robust reporting tools helps to secure leadership buy-in for key initiatives. Finance directors in particular appreciate the detailed reports and analytics that HR data tools can provide. Not only do they offer concrete evidence of workforce trends and the impact of HR interventions, but they also make it easier for HR to request changes or investments.

For instance, take employee turnover data. Comprehensive analysis can reveal patterns and underlying causes, such as dissatisfaction with career development opportunities or work-life balance. By presenting these findings to leadership, HR professionals can build a compelling case for implementing targeted retention strategies, such as enhanced training programmes or flexible working arrangements. This data-driven approach not only strengthens the argument but also demonstrates the tangible benefits of any proposed changes.

How data is used to make decisions

Being able to build a case for new policies, recruitment drives, employee benefits strategies or learning and development needs is something that can be supported and informed by data. This is particularly pertinent post-Covid as more workplaces employ remote or hybrid staff.

HR analytics and reporting tools can help HR monitor such things as productivity, engagement, and wellbeing. Employee engagement levels collected through surveys and performance assessments can highlight areas where remote employees may be struggling or excelling. This provides HR with actionable data to implement interventions to improve engagement. Using HR analytics here can unearth issues that employees may be having – whether that is physical or mental health. This can be done via wellness programme data, absenteeism rates and feedback surveys. HR can respond by putting measures into place like Employee Assistance Programmes (EAPs), wellness workshops, counselling services, or virtual fitness classes.

And this becomes even more pertinent when it comes to flexible working arrangements. According to a 2024 study, over 40% of survey respondents said that their companies have shifted to a hybrid model since the global pandemic. This underscores the importance of HR analytics in understanding and managing the complexities of hybrid work models, ensuring that employees remain engaged and productive regardless of their location.

Why data segmentation is important

HR tools can get deeper into the data still. Segmenting by department, team, manager, age, location, job level, and even employee tenure, for example, can offer team-specific insights which help HR to tailor any interventions and even shape policies around actual business requirements in real-time.

This can also play a role in EDI practices to help HR create strategies that support fairness and inclusivity. Studies reveal that measuring and monitoring EDI can help leaders effectively create sustainable change. A McKinsey & Company report stated that in 2020 the global market for EDI-related efforts was estimated at £5.8bn, yet at the current rate, the global economic gender gap won’t close for at least 150 years.

Organisations can do their part by using HR analytics to identify disparities in areas such as performance evaluations, career development, and promotion rates. The data can dig even deeper – and look in detail at how performance reviews, training participation and even advancement trends and identify any biases or inequities between remote and in-office employees. This can then inform things like ensuring equal access to training resources and mentorship programmes for remote workers who may otherwise have slipped through the gap.

Trendspotting and forecasting advantage

One especially useful element of HR analytics is the ability to forecast potential trends across an organisation. This not only helps companies address current issues within their workforce, but it can help them anticipate challenges and thus prepare. Predictive analytics, driven by cutting-edge technology, enables HR professionals to make those essential data-driven decisions that drive organisational success.

The same can be said about forecasting workforce needs which can be derived from historical data coupled with emerging trends. A McKinsey study revealed that 70 per cent of company executives cite people analytics as a top priority, and using it for predictive means tops the list of benefits.  For example, analysing employee turnover, retirement rates, and industry trends can help HR anticipate skill gaps and workforce shortages. This information is invaluable for strategic workforce planning, enabling HR to develop targeted recruitment and training initiatives to ensure companies have the necessary talent to meet future demands.

According to a 2020 report by the Office for National Statistics (ONS), the UK is projected to have an ageing population and undergo serious demographic shifts alongside a changing labour market. Being able to address and respond to these challenges with agility and pertinent data will help businesses adapt their employee strategy to mitigate any obstacles. Having such insights into workforce demographics, skills requirements, and potential talent pipelines will help future-proof organisations. 

 HR Reporting Software

To navigate these complexities, xcd offers a best-in-class HR reporting software designed to empower HR professionals with actionable insights. Our software provides a comprehensive suite of tools that streamline the collection, analysis, and reporting of HR data. With xcd’s HR reporting software, organisations can track key metrics such as employee turnover, engagement levels, and compliance rates, all from a single, intuitive platform. By leveraging advanced analytics and customisable dashboards, HR teams can easily identify trends, forecast future challenges, and develop strategic initiatives to enhance workforce productivity and satisfaction.

The xcd HR reporting software not only simplifies data management but also ensures data accuracy and security, giving you peace of mind. Our solution is designed to scale with your needs, offering robust support for your organisation’s growth and adaptability in an ever-evolving business landscape. Embrace the future of HR management with xcd’s innovative HR reporting software and drive your organisation towards success.

Find out more about how xcd can help with your reporting with our guide.