With so many options available in the market today to choose from, it can sometimes become difficult to decide which one you should go for. Finding the right set of practices to follow while selecting the right HR analytics tools is necessary.
For an HR management software in an organisation, the people you’ll include are vital to long-term success. Therefore, the software you choose for the team is just as critical.
Let us have a look at the four best practices that you can follow when choosing the right HR analytics tool:
1. Keep Analytics Distinct from Reporting
In a lot of organisations, it is expected that the HR reporting can be merged with analytics which shouldn’t be the case. The reason? Since both of them involve workforce data, they believe it’s natural to use the same technology to provide both functions. But both of these serve a different purpose; using them together can lead to conflict.
For example, you need to ensure the data is frozen before you generate a report; if that’s not done, it could lead to inaccuracy in your reports. While for analytics, the data needs to update on a regular basis. Using old data that hasn’t been updated yet, can lead to incorrect analytics report.
Since both guiding tactics and driving strategy have differences, you should never expect reporting tools to provide analytics as well. This is exactly why an HR management software can’t provide the kind of analytics the human resources team needs to drive business outcomes.
2. Make Self-Service Access a Must-Have
In the beginning, when an organisation first sets up the HR analytics tool, it’s common for the team to respond to requests from every stakeholder. But if the team’s goal is to provide analytic to every stakeholder, this isn’t a sustainable practice.
There is no way any analytics team will be able to perform analytics customised for the need of every stakeholder. For this scenario, the best option is to offer a self-serve option for analytics, which can be both cost-effective and useful.
3. Move Ahead of Embedded Analytics in HR Software
Some vendors sell HR management software that comes with an option to embed reports directly within a single system. Though it might sound easy and convenient that you can acquire data straight from one software, embedded analytics can also come with downsides.
Since every business’s critical information and solutions are present in multiple systems, the capability of your HR management software will never be enough, and getting the data from other systems can take a lot of labour. It can come with a hefty cost, which would most of the time mean requiring consultants from the vendor from time to time.
The insights that the team will get, needs to be relevant to the organisation. To ensure this, linking the insights with the organisation’s outcomes, that people care about outside of the HR team, is the best step to take.
4. Cloud-based Analytics is better than Business Intelligence Tools
In the past, business intelligence, short for BI, solutions built for expert users were the go-to technology for analytics projects. The new tools are much easier to use. Though, every business intelligence tool, regardless of old or new, has one major drawback, that’s loss of control.
Going for a technology or a tool for your organisation, that requires heavy involvement from your IT department would result in your human resource team being never in control. Instead of that, the IT team will always be in charge of deciding how and when they will integrate your data, and perform other required steps in order to maintain a solution, leaving the HR team almost out of the scenario. This would never be a healthy practice.
This is why using a cloud-based HR analytics tool puts your HR team in the front seat. The dependency on the IT team is not required anymore, leaving the human resource team to focus on methods that can help improve the HR practices and drive effectiveness in HR and the business.