Studies show that CFOs who pay attention to workforce analytics tend to deliver higher profit margins, better share prices and stronger overall performance. This applies to companies of all sizes, in any industry. Knowing what to measure is key, as is understanding how to apply the data.
“Leveraging and understanding which data you have available, which systems you're using today, and which capabilities those tools have around visualization are all certainly starting points," says Sue Marcus, regional president at Randstad Sourceright North America. “Understanding the data points that you're looking for and what you want to be able to measure [in advance] is critically important."
It is recommended that a robust people analytics strategy include metrics on turnover rates, recruitment costs, retention rates and absenteeism. Every piece of data, properly analyzed and applied, is a potential cost-savings opportunity. Especially considering that the Society for Human Resource Management (SHRM) estimates that each employee replacement can cost up to two times their annual salary.
“There is revenue loss by having roles unfilled, and it can impact the efficiency of your workforce,” said Marcus. “It’s also important to have visibility into your cost-per-hire … and be able to drill down to understand what goes into that and where there’s opportunities for better efficiency to reduce spend.”
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