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How HR Analytics Streamlines the Performance Appraisal Process

Shefali Vasave | June 21, 2022 | 178 views | Read Time : 02 min

Merger News
Employee engagement is directly proportional to employee productivity. It boosts morale and contributes to an organization’s growth and revenue churn. HR professionals worldwide need to enhance this engagement while keeping tabs on employee productivity and sentiment to regulate organizational performance.

Understanding employees through analytical data helps HR professionals optimize employee performance, ensure retention, and offer appraisals for their hard work. This data-driven approach toward human resource management constitutes HR analytics, or people analytics. When implemented and integrated into a company’s people management process, HR analytics can boost an organization’s performance and profitability.


HR Analytics: Core Advantages

  • Improves HR performance through reliable analytical insights
  • Transforms HR into a strategic partner
  • Aids HR in predicting skill requirement and vacancies in the organization
  • Identifies attrition and gives insights into its cause
  • Helps evaluate and manage employee performance

In today’s data-reliant world, HR analytics helps HR professionals go beyond their gut feeling during an employee’s performance appraisal process.


HR Analytics in the Performance Appraisal Process

Conducting a fair performance evaluation and appraisal process is imperative to keeping your workforce happy. Unfortunately, because the Bell Curve Method is time-consuming and rates employees in broad categories based on performance, it is no longer acceptable in today's appraisal process. Poor team dynamics, bias, inaccuracy, and inadequate feedback can take the appraisal process downhill.

HR analytics eliminates these issues by collecting and tracking high-quality data from learning and development systems, HR systems in place, cloud-based systems, and mobile devices. This data includes employee profiles, performance data, salary, promotion history, retention, absenteeism, engagement, and training history. As a result, HR professionals can evaluate employee performance objectively with the help of HR analytics. Here is how:


Identifies Patterns

HR analytics identifies both individual and team-level patterns of learning and strategy execution. Associated data and algorithms can provide objective insights into how the workforce prefers to work and what drives its performance.


Creates Engagement

Analytical HR data can give insights into engagement activities that boost employee performance. Such engagement activities can encourage organizations to invest more in performance building. They will also provide a definite metric to associate performance with engagement.


Offers Real-time Performance Analysis

HR analytics allows real-time assessment of performance to make timely decisions. HR professionals can estimate performance extensively, flag issues and predict which employees could be a liability. Companies like Google and Microsoft rely on HR analytics to analyze performance data in real-time for their appraisal processes.


Helps in Planning Succession

Accurate appraisal and performance evaluation using HR analytics helps HR professionals use the data for succession plans. They can consider promotions, professional break-ups, transfers, and more beforehand, rewarding and retaining the right resources.


Aids Constructive Feedback

During the appraisal process, HR professionals can give data-backed performance-related feedback to employees. The analytical data helps employees understand their areas of improvement. Such constructive feedback can enhance employee productivity.


Summing It Up

With the help of HR analytics, HR professionals can base their decisions about promotions, salary hikes, and other important human resource management aspects on quality data rather than just bias-prone human insights. They can also align employee requirements with business objectives.

Spotlight

Cintra HR & Payroll Services

Cintra was established in 1981 and is dedicated to the supply and support of employment solutions in the United Kingdom Cintra supplies Human Resource and payroll systems, mixed to suit an organisation’s needs, allowing our customers to outsource what matters and control what counts. Cintra have been providing elegant and reliable solutions to a wide range of clients throughout the UK for many years. They range from simple, single site installations, to operations spread across multiple sites, involving complex and varied scenarios, ranging from five to over 20,000 employee records.

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