Workforce Analytics

Definition, Types,
Benefits & More!

© 2020 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com

Contents
What is Workforce Analytics?

How does Workforce Analytics help in solving

employee-related queries?

Workforce Analytics, HR Analytics, People Analytics, and

Talent Analytics! Are they all same?

Benefits of Workforce Analytics

Types of Workforce Analytics

Should I invest in Workforce Analytics?

How is SplashHR different from others?

© 2020 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com

So, what exactly is Workforce Analytics?
Workforce analytics is the process of using data-based intelligence to
improve and enhance decision making, like managing and hiring top talent,
aligning compensation with performance, etc... It leverages “big data” to
make informed workplace decisions and predictions. Many organizations
have a massive amount of data, which is often either not utilized well or not
organized correctly. Workforce analytics helps in optimizing this data by
collating it, arranging it, and transforming it into valuable decision-making
information for human resources.
Many organizations hire data scientists for towering salaries. However, what’s
the use of such analysts when data is just collected. It’s just like trees falling
in the forest. Data becomes relevant only when it affects decision-making or
if it could be understood.
Workforce analytics should always work along with decision-makers,
to make accessing information and making better decisions easy.
Otherwise, the HR analytics are almost insignificant.
Workforce analytics is the art of analyzing employee-related data applying
an advanced set of tools and metrics. The goal is to recognize, quantify, and
improve the role of talent in the achievement of strategy and value creation.
It involves gathering data from internal and external sources, processing,
storing, and analyzing it to get insights about people on whose competence
an organization’s performance depends.
Workforce analytics enables HR professionals to make educated decisions
related to employee lifecycles like recruitment, performance evaluation,
training, compensation, and much more.

How does Workforce Analytics help in solving

Employee-related Queries?
HR professionals generally apply four kinds of analytics to get
insights into a company’s workforce

1. Descriptive analytics helps them gather and analyze data that describes the
current state of things or past events.
2. Predictive analytics helps in anticipating future outcomes and values based
on the analysis of current and historical data. It uses statistical techniques like
data mining and machine learning. Organizations use predictive analytics to
optimize operations and improve the employee experience.

© 2020 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com

3. Prescriptive analytics gives suggestions on what to do based on
predictions and what had happened in the past. This approach is exceptionally
profitable for organizations with busy seasons.
4. Diagnostic analytics show the causes of the results exhibited descriptive
analytics. It explains the underlying cause, which helps us to focus our efforts
to decrease the problem.

Workforce Analytics, HR Analytics, People

Analytics, and Talent Analytics! Are they
all the same?
The terms People Analytics, Talent Analytics, Workforce Analytics, and
HR analytics used interchangeably do not mean the same thing.
We can use Workforce and HR Analytics in the same breath, just like
People and Talent Analytics.
People and Workforce Analytics work in conjunction, but they do not
mean the same thing.
People Analytics is the data gathered from a person from the start of their
hiring process right until their last day of employment. It is then reapplied
to the company’s employees and hiring process to get better applicants,
increase employee performance, improve retention, and make smarter
hiring decisions.
Workforce Analytics, however, focuses on the workforce on a slightly
extensive scale. It is more of a technology-driven strategy for evaluating
talent assessments. In workforce analytics, data collected helps to refine
and enhance assessments that potential candidates and current
employees must take.

Benefits of Workforce Analytics

There are lots of advantages with workforce analytics that help companies
get better insight into their organization and employees and spot trends in
the workplace. With the help of technology, which has grown many folds in
recent years, workforce analysis provides a return on investment (ROI) for
the organization’s bottom line.
HR analytics help business leaders in developing and improving hiring
methods and retain the most skilled workers with the company. Also, it can
assist in doing the following:

© 2020 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com

 • Predict the probability an individual employee’s success can bring to an
organization.
• Identify the demand for new functions and positions.
• Discover which functions or positions can be reassigned or reduced.
• Help to analyze and better manage expenses (like Payroll, Benefit).
• Recognize and quantify the factors that influence employee engagement.
• Predict current and future needs.
• Optimize the company’s structure and policies to facilitate better
performance and productivity.
• Make processes leaner, efficient, and effective.
• Help the company to identify, support, and develop high potential
employees and future leaders.
• Create a fair compensation system.

Let us now look at different types of workforce

analytics that can provide us better insight:
Employee Engagement
Companies today are more focused on employee engagement. Engaged
employees are more likely to be faithful, committed, and productive. They are
less likely to have reduced morale while driving stressful business ventures.
They give a good measure of how effective the management is. More engaged
employees are usually a sign of good leadership. Engaged employees are
more excited to come to work every day and believe in the company’s vision.

Training Efficiency
Being capable of running reports on how training fare helps the human
resources team to plan and develop future trainings. It gives them a fair
understanding of how good they are on their employee improvement agenda
as an organization. The employee training effectiveness is directly
proportional to the productivity of employees as it makes employees more
skilled at their jobs.

Churn Rate
The churn rate or the turnover in an organization is reflective of how engaged
its employees are. The churn rate can tell you a lot about the health of your
workforce. It is vital to understand how many employees leave your company
monthly and annually. If your turnover is low, you have a healthy work culture.
If it is high, you will have to work on the possible causes.
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Absence
Absence is another type of workforce analytics that HR teams use to
understand the health of your employee culture. Absenteeism around holidays
is normal. However, if you see sick days collecting up for people reporting to
the same manager, it calls for retrospection. Absenteeism tells you a lot about
how much employees value your business. It leads to high health care costs
and low productivity.

Data that Matter!

There are several compelling reasons why businesses need to invest in
workforce analytics. Let us look at a few stats about employee turnover :

• Only 16 percent of employees said they seemed engaged to employers.

• It costs about 33% of an employee’s salary to replace him or her.
• Over 75% of the reasons for employee turnover are preventable.
• Around 17% of companies using HR technology are striving to
decrease turnover.
• About 81% of employees consider leaving their company if they have the
right offer.

Workforce Analytics Data that Matter!

Only 16% of employees said they It costs about 33% of an employee’s

seemed engaged to employers. salary to replace him or her.

Over 75% of the reasons for Around 17% of companies using

employee turnover are preventable. HR technology are striving to
decrease turnover.

About 81% of employees consider

leaving their company if they have
the right offer.

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Should I invest in Workforce Analytics?
Unlike other corporate functions, investment in Workforce Analytics is
essential. HR, in the past, had no analytical tools and science to quantify
investment opportunities. Technology, though, has improved, and investing in
workforce analytics today has become imperative for the following reasons:

Transparency
It allows leaders to get visibility into processes and results that once used to
be murky. It also enables business leaders better to justify additional investment
in HR tools and services.
Improved Monitoring
Business leaders can monitor the inputs and outputs of their
pre-postemployment hiring processes to track progress against benchmarks.
It enables them to be ready for most outcomes.

Forecast
The historical data and modern trends help business leaders in asking
relevant questions and determine potential business impact. Forecasting
enables business leaders to assess if any change is sustainable for their
business.
Real-time workforce analytics is the process of using statistical tools and
methodologies for company leaders to optimize human resources
management by leveraging data intelligence. Enterprises, mindful of the
connection between individual performance and organizational profitability,
are adopting workforce analytics to plan, analyze, and evaluate employee
behavior. There are many workforce analytics tools which assist business
leaders in understanding and managing their employees.

How is SplashHR Different from Others?

SplashBI’s SplashHR gives you a head start with pre-defined, industry-standard
people analytics. We offer 700+ pre-defined people KPIs across 25 dashboards,
covering areas like employee retention, recruitment, performance, and
absenteeism.
We offer faster results using automatic data connectors. With SplashHR, you
need not worry about field mappings and data transformation.
SplashHR’s pre-defined KPIs and dashboards can be extended using any
data source, including engagement surveys, employee recognition, finance,
and more.
SplashHR enables HR leaders to leverage vast amounts of people data to fulfill
business goals and present the data to management in an effective way.

© 2020 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com

SplashHR monitors the overall organizational health for every leader, job type,
location, and department. It includes vital human capital analytics like:
• Turnover
• Employee performance
• Absenteeism
• Compensation
• Diversity & Inclusion

Conclusion
One of the most critical aspects of workplace analytics is to keep measuring
and stay transparent with employees and stakeholders. Once everyone
recognizes the importance of tracking this data, it becomes easier to get the
needed information and make informed HR decisions.
There is no one-size-fits-all workforce management strategy for all companies.
What’s worked for one company may not work for the other.
Workforce management is no rocket science.
Organizations have a lot of the data they do not need. It is all about creating
the right workforce management and reporting practices to understand the
data in meaningful ways. An efficient analytics solution like SplashHR, by virtue
of their domain expertise and deep understanding of data and trends, can
help organizations make sense of their people analytics and benefit from it.

https://splashbi.com/

© 2020 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com