Harvard Business Review Analytic Services surveyed 498 global large organizations in order to develop a study on the use of Workforce Analysis. Based on this survey, 89% of the respondents do not consider themselves to be effective at managing their workforce to its best advantage. It resulted that even the companies using advanced analytics are not satisfied with their organizational efficiency. Especially in important workforce attributes such as productivity, flexibility, collaboration and engagement.
What is Workforce Analytics and why is it important?
Workforce Analytics is the combination of employee-related metrics, which allows companies to measure how well their workforce performs.
Harvard Business’ study certifies the use of advanced analytics is directly connected to the ability to manage workforce more effectively. By doing an adequate workforce analysis, it is possible to measure data in order to have a clear picture of the current situation and make further improvements related to HR strategies. This will result in an optimization of business results.
How to get the most out of your Workforce Analysis?
In order to maximize performance management and optimize company’s results, the following best practices can be drawn from the study:
- Identifying high-potential employees. It is very important to have high-performance teams composed of the right employees in each position according to their talents.
- Providing employee training to grow all of their capacities. Companies that are very effective at leveraging their workforce focused most on developing their employees’ skills in strategic areas.
- Engaging employees and empowering them to perform at their highest possible level. Employees should feel truly connected to the company, sharing its culture and vision. Having a workforce that feels part of the organization and is motivated will lead companies to success.
- Constantly investing in and developing talent. Companies that have an effective performance management are more likely to have a competitive advantage in quality, customer satisfaction, profitability or market share.
- Integrating HR into the strategy of the company. Integrating workforce analysis into business systems will make it possible to compare each employee’s performance against operational processes and company performance, which makes it easier to detect and manage both their weaknesses and their strengths.
There are still many companies far from their potential due to their lack of workforce management. It has been shown how an advanced use of Workforce Analytics will empower organizations to optimize their efficiency.
For further information about performance management, you can discover the key factors to consider in performance management and view our Infographic "How An Effective Performance Management System Can Retain Top Talent":
Based on the following HBR report: https://hbr.org/resources/pdfs/comm/sumtotal/hbr-sumtotal-report-aug.pdf