Survey Reveals only 54 Percent of Respondents Use HR Analytics
ATLANTA — September 28, 2010 — NorthgateArinso, a leading global Human Resources (HR) software and services provider, today announced results of a survey conducted on the usage of HR analytics within an organization.
HR analytics offer deeper insight into the processes and efficiencies of an organization by extracting specific data points for measurement and benchmarking. Each of these data points, or key performance indicators (KPIs), can be used to better inform business decisions or to improve or eliminate processes.
Based on the survey, organizations that were global and had a larger number of employees were more likely to have deployed HR analytics within their business. Within those organizations, the metrics most commonly measured were headcount, compensation management and workforce planning. 88 percent of respondents needed at least a week to process data and provide results to the team, indicating that either the KPIs being measured were not being properly monitored, the data was not being utilized in an effective manner or that additional training needed to be done for the HR tools. Underlying these points, 60 percent of survey respondents indicated that they don’t have strategic goals attached to the data gathered.
A priority for senior staff or the management team, HR analytics offers the ability to have deeper insight and more effective metrics to measure progress and success against. However, the key challenge for the deployment of HR analytics remains costs. The budget for HR analytics, as reported by survey respondents, can come from various budgets, but the trigger is in the potential value of the data obtained.
“There is a significant gap between what is executed within an organization and the strategic reason behind the action. This is evident across all business units, but most clearly in HR,” said Michael Custers, vice president of marketing at NorthgateArinso. “Based on this research, it’s clear that the majority of users are still focused on analytics at a tactical level, but the real opportunity is in the strategic value that can be derived through HR analytics. The potential value-add of HR analytics is only limited by the user and deployment.”
