Data Driven HR: The Key To Retaining Talent and Enhancing Employee Experience

Recent jobs report indicates companies are still struggling to combat the unemployment woes resulting from the pandemic. Burnout remains a key concern for 87% of companiesOpens a new window . Employers are being forced to revamp their benefits strategies to stay competitive while insurers are preparing for a shift in employee insurance benefits and priorities.

Striking the right balance between satisfying employees’ new needs and keeping business afloat remains a challenge for companies; thus, centering your HR strategy around data is key. A data-driven approach to HR provides insights for executives to make strategic decisions that aid in the retention of quality talent while also enhancing the employee experience.

Here’s how data can be both a clear indicator of challenges within a company as well as an indicator on where to make clear adjustments to retain employees and enhance their workplace experience.

See More: Facing Recruiting Reality: 4 Ways To Address Talent Shortages

Spotting Blind Spots

Without data, HR leaders lack a substantive understanding of why employees are staying or leaving. Today’s market is much more competitive than it was a year ago, and we’ve seen bargaining power shift from employers to employees. Employees are empowered to ask for higher wages, more frequent raises, greater work-from-home flexibility and more benefits. The success of employers navigating this shift relies heavily on their visibility into their employees’ wants and needs.

Using data, employers can evaluate their business across departments. One area where data is crucial is in determining compensation. Organizations need to analyze their finances, research the market and industry averages, and ensure that they’re offering competitive salaries and benefits. This insight will also determine raises, additional bonuses and what type of salaries should be offered for open positions.

Moreover, employee data provides insights into the effectiveness of benefits options. Workplace benefits are increasingly essential. However, benefits only work if your employees are actually utilizing them. If your workers don’t believe the offered benefits are benefiting them, they may choose to walk away. This is especially true for industries facing high turnover ratesOpens a new window . By meeting with employees individually, conducting surveys, and utilizing available demographic data, companies can analyze how to adjust current healthcare and benefits options. Using strategic HR practices and making informed decisions based on data that is transparently shared sets up a two-way street of accountability for executives and employees.

Retooling for Hybrid Work

Technological innovations have helped quell remote work concerns such as: ‘how do I know that my employees are working?’ For many companies, collaboration tools such as Slack and Zoom have made the shift seamless; however, hybrid work still has its drawbacks. The lines between work and home life are more blurred than ever before, leading to an increase in burnout. Although companies were investing in creating nurturing and healthy workplaces prior to the pandemic, they are now tasked with developing policies that more strongly encourage employees to prioritize a work-life balance. Having insight into which employees are taking advantage of PTO, mental health days, etc., allows HR leaders to enforce policies fairly and adjust them where necessary.

The shift to hybrid work has also highlighted companies’ onboarding experience. Beyond what plans and packages are being offered, accessibility to information and the simplicity of onboarding are crucial. This is especially true with the shift to hybrid work, leaving SMBs, which employ 40% of the workforce, competing with large enterprises.

Data is also a key indicator of productivity among employees. How companies measure success has shifted, requiring the collection of various new data points. For example, understanding how much time is spent in meetings vs. focused on work or which workplace apps are more hindering than helpful.

See More: 5 Areas Global Talent Acquisition Strategy Should Focus On in the Remote Work Era

Building Employee Experience Beyond Job Titles

How a company views the importance of its employees has a direct impact on employee experience. Getting business leaders to pay attention to the individuals who make up their organization is key in building awareness for changing the status quo. For example, I like to take a “holistic employee view” approach in which company employees are viewed as well-rounded humans rather than simply people in seats. Through this approach, and the use of data to determine where employees really shine and what keeps them engaged, I have been able to help develop more clear paths for employee upward mobility. This has helped implement opportunities to grow their careers beyond their role, ultimately enhancing their employee experience.

To further enhance the employee experience, HR leaders need to make sure employees are heard. A core pillar of this is investing in and improving DE&I initiatives, which start with organizations understanding the fundamentals of diversity and why it’s important.

HR professionals have access to data from recruiting efforts, employee growth data, and interview processes. If your organization isn’t tracking this already, you better start. Collecting and presenting this data to a leadership team makes them aware of the team makeup, where there are opportunities for development, and how to approach DE&I as more than a “box to check.” Instead, the focus needs to be on education, accountability, hiring, and career development. This may involve analyzing who is applying for open positions and doing deeper research into why there is high turnover among a certain group of an employee base. Pull and analyze the data that is already available through the existing platforms you use, and leverage this for accountability. Once businesses are attentive and aware of why their DE&I efforts have fallen short, leaders have the tools to practice hiring and promoting with intent.

The 2021 talent market has drastically changed the way companies handle recruitment, onboarding, retention, and off-boarding. Over the next few years, companies will need to establish heightened levels of engagement and stay in tune with their employees even when they aren’t in person and are working remotely. There is no one-size-fits-all answer for employers, so the best path will be the one that is informed by data and keeps the business moving forward.

How are you using data to retain talent in your organization? Share with us on LinkedInOpens a new window , FacebookOpens a new window , and TwitterOpens a new window .