As HR departments are playing an increasingly strategic role alongside general management teams, it is now becoming essential for companies to use a Human Resources Information System (HRIS) based on Business Intelligence. This is because companies can no longer do without accurate data management, supported by HR dashboards, reports and performance indicators.
Why is BI so important in HR management?
HR departments are faced with a major challenge: the need to constantly improve efficiency while keeping down costs. This challenge cannot be tackled without Big Data.
With reliable and relevant data at their disposal, HR departments are able to evaluate the risks borne by their respective companies to identify their weaknesses and shortcomings and measure the true impact of implemented measures. This exactly what BI and data visualization allow these companies to do, hence the need to carry out a Business Intelligence project guided by rigorous specifications.
The 8 benefits of Business Intelligence for HR management
Centralizing and improving the reliability of data
Given the number of employees on their companies’ books, the salaries, turnover, recruitment costs and training information, HR departments have a large amount of strategic data at their disposal. But to make the best decisions, this data must be completely reliable and usable.
That’s exactly why companies need a Business Intelligence tool, allowing them to centralize a large amount of information from various sources by storing it in a data warehouse. The data can then be sorted and categorized to generate relevant reports and HR dashboards.
Companies therefore have a 360-degree view of their human capital, greatly facilitating daily HR management.
Analysing performance
By combining the Human Resources Information System (HRIS) with financial data, you can measure the direct impact of each employee on the overall performance of your company, as well as the contribution of a particular department or a subsidiary.
A Business Intelligence solution allows you to identify areas for improvement and high-potential profiles. To better contextualize information, HR managers can also compare it against industry benchmarks.
Quantifying salaries more effectively
Salaries have a significant impact on a company’s performance, so they must be set at the right level.
Business Intelligence tools allow HR departments to manage salaries in real time and ensure that the correct amount is paid. These tools can also manage performance-related bonuses to ensure they are aligned with the company’s strategic objectives.
Keeping down costs
Keeping down costs without adversely affecting employee motivation and morale is one of the biggest challenges faced by HR departments. HR dashboards and reports help identify trends and opportunities, increasing efficiency while limiting negative impacts.
Improving productivity also means reducing sick leave. Business Intelligence allows you to identify the main factors behind work stoppages and to implement suitable corrective measures.
Identifying training needs
As we have seen, analyzing HR department data allows you to identify the best-performing employees, as well as those with room for improvement.
This valuable data allows you to identify the professional training needs of each person, in order to earmark a dedicated budget and to set up a relevant system to gain in efficiency.
Retaining employees
Employee motivation is a key performance indicator (KPI) that should not be overlooked. You can use an HR dashboard to measure employee satisfaction on a daily basis and to identify individual needs and issues.
HR departments can therefore implement an effective talent management strategy to build long-term team loyalty, motivate employees and attract new recruits more easily.
Complying with regulations
In some companies, the HR Department must produce HR reports to ensure regulatory compliance. This applies, for example, to the professional equality index, the economic and social database (ESDB) and the annual CSR report.
The report creation process can be fully automated within human resources information systems. Companies can therefore fulfill their obligations while also saving valuable time.
Foreseeing the future through predictive analytics
Data analysis tools allow HR departments to predict the future of their respective companies and identify certain issues at an early stage, such as the management of an aging workforce. They can also identify rare, but valuable, skills with a view to a company’s future development.
In fact, HR teams can perform in-depth and completely anonymous analyses of skills, qualifications or training, thanks to an intuitive Business Intelligence solution.
Business Intelligence allows HR departments to centralize a large amount of reliable data within their human resources information systems, which they can use in various ways. Performance analysis, cost control, salary calculations, etc. These are just some areas in which HR dashboards and reports are proving invaluable allies. However, companies must implement a very specific strategy to successfully deploy their BI tools.
