Today’s workforce has an untapped potential buried deep within companies. Akin to the insights businesses gather from their customers to analyze their product/service’s performance, the workforce preserves the exact sort of data. And thanks to people analytics, companies can unlock these beneficial insights.
Chief human resource officers (CHRO) are unleashing new ways to leverage data to improve decision-making within the (HR) space, boost bottom lines, and enhance workforce satisfaction. One such focus area is compensation. With many organizations being service-centered instead of product-centered, workforce costs are often the largest expense line in the financial reports. Due to this, people analytics in compensation has gained more CHROs’ attention to keep expenses aligned with revenue to sustain their companies’ financial health and profitability.
Read on to learn how people analytics is helping organizations in compensation.
No more Guesswork in Decision-making
When dedicated employees resign, their managers’ natural reflex is to counter their decision. However, without data, how can organizations determine if making such a proposition is a wise decision? If an employee is already well-compensated, making a counter-offer may adversely skew the compensation within their job categories. That can trigger additional issues with regard to pay equity. In other cases, CHROs might realize that the concerned employee is under-compensated for their roles. In either situation, compensation insights across companies enable CHROs to make better and more equitable decisions.Analyzing Sales Efficiency
People analytics is critical for organizations that need to determine if they are extracting a return on their sales force investment (ROI). Sales professionals are more highly compensated than other employees. Therefore, including their expense accounts can add to sales teams’ total expenses. As such, businesses must determine if the sales department is generating additional revenue that supports their overall costs and if they are distributing the rewards fairly and effectively. Having an in-depth view of sales teams’ compensation will allow the C-suite to gauge the success or failure of this workforce section, and optimize its efficiency.
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