Why Workforce Analytics is Essential for Growth
The workforce or human capital is critical to the growth and success of any business. However, many struggle to know which key workforce metrics and insights are required to create an optimal workforce strategy.
To help organizations boost their workforce analytics and to make sense of all the available data that they could potentially be analyzing, LYTIQS has put together a list of the top 25 most important human capital questions that all HR leaders should be asking.
Table of Contents
Workforce Strategy
The world of work is changing rapidly. Remote workforce, artificial intelligence, and automation will force organizations to shift their workforce strategy to adapt to the new environment. While some industries will have the flexibility advantage, and many others will have to change how they work, almost all will change.
These questions will help you drive business results today and build your workforce for tomorrow.
#1. Can we link workforce spending to business outcomes to know where to cut and where to invest?
#2. Can we model our workforce size and mix to optimize cost, profit, and productivity?
#3. Can we accurately forecast our workforce needs and supply in the future?
#4. Can we integrate labor supply, demand, and competitive intelligence information to optimize our remote/on-site talent mix?
#5. What is our Total Cost of Workforce (TCOW) as a percent of revenue? As a percent of expenses? How do we compare to peers?
#6. What is our workforce productivity? Is it increasing, decreasing, or static? Are we more productive than our peers?
Engagement and Diversity
Employee experience including engagement and diversity are among the top priorities for organizations right now. However, there is a big gap between what the goals management set and what HR teams are currently doing.
These questions will help both management and HR focus on specific aspects of employee engagement and diversity that are quantifiable and achievable.
#7. What is the link between employee engagement, customer satisfaction, revenue, and profits? What are the drivers?
#8. What business areas/positions/managers have the lowest engagement? Is there an impact on turnover, performance, and productivity?
#9. Can we integrate diversity and inclusion goals in our workforce planning process to know where to increase and cut diversity hiring activities?
#10. Could we offer compensation and benefits that cost less and engage/retain employees better?
Turnover and Retention
#11. Are we losing the right people (low performers) or the wrong people (high performers or critical roles/skills)?
#12. What is the cost of turnover to our business? What are the leading drivers of employee turnover and retention?
#13. What business areas/positions/managers have the highest voluntary turnover? How do we compare to peers?
#14. What are predictive indicators of turnover? What percentage of employees are at risk?
Recruiting and Onboarding
The pandemic drastically changed how the recruiting and onboarding process is taking place at organizations. Organizations are looking for ways to fill skill gaps and stay productive in the face of unprecedented challenges.
Below are critical recruiting questions that management and HR leaders are asking but couldn't get the answer to:
#15. Where does our best talent come from? Which managers are the best talent scouts and coaches?
#16. What is the quality of new hires? Can we measure it?
#17. What recruiting source(s) yield the most/least high performers and the best/worst cultural fits?
#18. Is internal mobility a source of value or turnover and cost? What percent of the workforce moves internally each year?
#19. What is the average time-to-full-productivity for new hires? For new hires in critical roles?
#20. What percent of the workforce has a defined career path?
Leadership and Performance
Leadership is the deciding factor in how quickly an organization can respond to changing needs. With the workplace changing rapidly, the topic of leadership and its impact on business outcomes are more important than ever.
Below are the top leadership and performance questions that your team can focus on:
#21. Are leaders effectively managing human capital? Do leaders' performance correlate to employee engagement, retention, and performance?
#22. Can we identify which leaders are managing human capital most/least effectively in the areas of performance, engagement, retention, diversity, and talent scouting?
#23. Is there a link between employee performance and total rewards? If so, do we know the optimal pay/performance mix?
#24. What is the total pay/rewards differential between high performers and average employees?
#25. What is the ROI of training to the firm? Where could training investments improve productivity and profitability?
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