What is Employee Analytics? Learn Key Metrics, Importance, and Tracking Methods

Every organization wants to perform its best to survive and surpass the competition in this fast-paced world. It cannot walk by itself, it cannot run by itself, it cannot fall by itself, it cannot rise by itself, nor it can reach anywhere by itself! But, every organization relies on its workforce to aim and fulfill its goals.

This implies that a business’s performance is directly related to that of its employees! So, in the never-ending pursuit of organizational excellence, enterprises are turning towards advanced technology and tools that can provide them with employee analytics to improve work efficiency by manifolds!

But what is employee analytics? And how can it improve an employee’s productivity, thereby improving the organization’s overall performance? We’ll see to it in the upcoming sections.

Understanding Employee Analytics 

As the name suggests, employee analytics is the data collected and analyzed to understand an employee’s behavior, engagement level, and performance. These valuable insights go beyond the traditional human resource metrics. It helps an organization gain a holistic view of its workforce.

This strategic approach helps enterprises seek answers to varied questions: How are the employees contributing to the organization’s goals? What factors hamper or improve the productivity of an employee? How can we improve an individual’s job performance without impeding their personal time?

The following sections discuss how we find answers to these questions using analytical data.

Key Metrics in Employee Analytics

The key metrics involved here are mentioned as follows:

1. Productivity-based Metrics

Measuring output and efficiency are the central points here. A good employee monitoring software can help managers provide these metrics by tracking an employee’s productivity in a day by observing the time spent on productive and non-productive activities.

2. Employee Engagement Metrics

The employee engagement metric is the qualitative aspect of employee analytics. Data should be analyzed so that employee morale, commitment, and job satisfaction can be adequately assessed.

3. Turnover Rates

Workforce planning is an essential component of the overall organizational planning. So, using analytical data to determine the prevailing turnover rate and the reason for leaving is necessary. These analytics help track improvement areas and employee retention rates, which are helpful for future plans.

4. Performance-based Metrics

Performance metrics help evaluate an employee’s performance in a day and over time compared to the organizational goals. The achievements are compared to the objectives, and an employee’s capabilities are analyzed.

5. Absenteeism

Absenteeism is the customary practice of an employee being non-present at their jobs. This is especially the case for remote employees. Analytical insights are used to monitor attendance patterns and to take actions based on the assessment.

Time-tracking softwares like Leapmax can help managers evaluate active and idle time and provide analytical insights in the form of data, pie-charts, and graphs to analyze their performance and productivity efficiently. It helps to address and reduce absenteeism and turnover rates when these issues arise.

Importance of Employee Analytics

As discussed above, these analytics help to assess employee engagement, behavior, and performance. Together, these facets form the basis for the importance of these analytics. Employee analytics is necessary to take care of the following aspects:

1. To Enhance the Decision-making process

Employee or workforce analytics help managers make enhanced decisions after making room for any potential discrepancy arising. The data-driven decisions help in better resource allocation and talent management. Also, the SWOT analysis of employees allows strategic and wise planning.

2. To Boost Employee Engagement 

An engaged hybrid workforce is more satisfied and content with the job and the company and tries their best to achieve goals, while a disengaged workforce doesn’t care and is least loyal towards their organization. In a nutshell, employee analytics can help businesses identify the levels of workforce engagement so they can take steps accordingly.

3. To Implement Retention Strategies

Employee analytics tells everything about the employees, including the reasons that inspire or demotivate them to work. The user behavior analytics derived through a good employee monitoring tool helps managers to know about the talent that should be retained. Once this is known, strategies to reduce employee burnout and improve satisfaction shall be implemented.

Employee Analytics allows us to take all these steps to improve an organization’s operational efficiency with practical management strategies. This makes an organization efficient while being data-driven.

And that should be the case. After all, data-driven companies are 58% more likely to achieve and surpass their organizational goals.

Methods to Track Employee Analytics

Employee Analytics can be easily tracked using the following simple methods:

1. Regular employee surveys should be conducted to know employees’ mindsets and requirements and ensure job contentment.
2. Workforce analytics tools will be used to gain analytical insights into employee attendance and performance.
3. A learning management system (LMS) should be established to ensure employee development by enhancing their skill level.
4. Social network analysis shall be performed over the workforce to track influential employees and offer them collaboration channels to grow.

Conclusion

This blog clearly defines the importance of employee analytics in the decision-making process and provisions to improve organizational productivity. However, having such reliable data available to analyze is a tedious task made easy by Leapmax!

Finding the best productivity-tracking software is a critical task. As per a study, 92% of workers are open to the collection of data provided it improves their well-being and performance. So, choosing the right option to maintain their trust is crucial.

But you better not worry; Leapmax is there to help you take the productivity leap!