Workforce analysis is the process of assessing employee data to determine the most effective way to hire and deploy human resources. Many business leaders and HR managers use this talent management strategy to identify employees’ training and development needs, optimize employee productivity and performance, and identify skill gaps and shortages.
What key metrics should workforce analytics track?
There are several key workforce management metrics and benchmarks that companies should track and monitor to gauge the overall health of their organization and make informed decisions regarding their workforce:
- Employee engagement and experience: This metric measures employees’ engagement with their work and job satisfaction. A high level of engagement and positive employee experience results in increased employee satisfaction indicating that employees are motivated and invested in their roles, which can lead to improved productivity and performance.
- Training and development: This metric measures the effectiveness of your organization’s training and development programs. By tracking this metric, you can identify areas where your programs fall short and make necessary improvements.
- Employee retention and turnover: This metric can tell you how long employees stay with your company, how many leave, and why. High employee turnover rates indicate that employees are unhappy in their roles or don’t have enough opportunities for career growth. With this information, you can take steps to improve employee retention rates and reduce the turnover of top talent.
- Employee performance and productivity: This metric can show how efficiently your employees complete their tasks. If productivity levels are low, it could be a sign that management hasn’t adequately trained employees or that your employees aren’t working in an optimal environment. Gathering this information will help you create an effective performance management strategy.
How do you conduct a workforce analysis?
To conduct a workforce analysis, companies must take the following steps:
Step one: Identify the purpose of the analysis. Knowing the goal will help HR professionals to determine the scope of the analysis and the type of data to collect.
Step two: Gather data on the current workforce. You can collect employee data from numerous sources, including job descriptions, performance reviews, and employee surveys.
Step three: Identify future workforce needs. Companies can forecast future staffing demands by looking at industry trends, technology, and business environment changes.
Step four: Develop workforce plans and recruitment strategies to address skills gaps and shortages. This plan should include training and development programs to help existing employees acquire the necessary competencies.