Organizations that integrate workforce and business performance data into their analytics tools are nearly three times as likely to achieve best-in-class performance results as those who don’t, says a new report on workforce analytics from Aberdeen.
Aberdeen surveyed nearly 450 organizations to determine best-in-class practices in human capital management. Best-in-class are defined by Aberdeen as the top 20% of aggregate performers.
Aberdeen states that while organizations are optimistic about growth, the need for efficiency is still a top driver. As organizations seek to do more with less, they are turning to HR to drive business value by balancing efficiency and growth.
Aberdeen’s research shows evidence that analytics can help drive growth and have a positive impact on workforce optimization. They found that organizations using analytics tools are 25% more likely to achieve top-tier optimization metrics.
The ROI from analytics can be significant, in that best-in-class had a decrease of unnecessary overtime by 20%, twice the improvement in customer satisfaction, as well as notably increased workforce utilization.
Aberdeen recommends implementing an HR system of record to act as a centralized repository for HCM data; 87% of organizations using analytics tools have this in place. The central repository helps ensure consistency of data used by analytics tools and eliminated duplication.
By collaborating with operations to identify pain points, organizations can define relevant metrics for dashboards aligned to business priorities. According to Aberdeen, understanding which metrics most closely correspond to which business objectives should be part of the due diligence process when implementing workforce analytics.
By establishing manager accountability, Aberdeen says organizations can allow manager self-service access to reporting capabilities and empower operational stakeholders.
The report, which includes some case study examples of successful workforce analytics solutions, is available free from Aberdeen for a limited time.
Valerie Valentine is senior editor of Information Management, a SourceMedia publication
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