Investment on Hr

761 Words4 Pages
The Business Need for Improved HR Analytics As worldwide economic and political conditions continue to concern business leaders, their attention turns to the various levers that can foster success in uncertain times. Employee salaries make up close to half of many organizations’ operating expenses and can be even higher in some industries such as financial services, so the contribution of the workforce to organization success is perhaps the most important lever to competitive advantage. In fact, the challenge of containing costs while developing a high performing workforce is a primary challenge facing most companies today. But, do organizations know enough about their workforce to optimize the workforce lever? We all know the US…show more content…
Organizations struggle to understand their complex existing and potential workforce and how to use each effectively. Which applicants should they recruit? Which of their hires do they wish to retain for their performance and productivity? Who amongst their internal talent do they wish to groom for career advancement? What are the most effective compensation, benefits and development options that will optimize the organization’s competitiveness in the marketplace? As we navigate today’s dynamic economy, do we need to retrench again or pursue growth? We want answers to these questions almost on a daily basis, in addition to the most obvious one: what is our headcount? Fortunately, it is now possible for organizations to excel at answering workforce-related questions using workforce analytics. We can know whether to bolster training programs, tweak our benefits and compensation plans, or hire into or terminate from key talent pools. We need not turn to across-the-board cost cutting measures and reductions in staff and services. We can sift through far more data and crunch many more numbers to determine who is performing well, who will be needed, where will they be needed, with what skills, and at what cost? We can look at which individuals are achieving their performance goals and see which of them have the competencies needed for today and tomorrow to build a competitive workforce. With breakdowns in place of
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