Future of human resources analysis has to be linked to other key performance
indicators such as revenue and profitability. HR professionals must understand
the organisation’s business plans and the operational, financial and customer-facing
goals they are expected to achieve. Then they should associate these goals with
the existing workforce metrics.
In many cases, HR information is scattered, which leads to non-systematic hiring,
training, measurement data which is essential these days, as globalisation,
tight labour markets and an aging workforce are causing many businesses to more
closely inspect the performance of their largest investment, i.e. the workforce
whose compensation represents 60 per cent to 70 per cent of the entire expenses
of the organisation.
New business intelligence technologies offer HR departments the ability to invest
in Human Capital Management analytics solutions designed to yield the insights
essential for making informed decisions on HR. Business intelligence allows
HR departments to become a strategic asset within the organisation. It helps
the HR department make key decisions around recruitment, planning, and budgeting
to support the strategic goals. More than ever before, HR professionals are
being asked to show how their company’s workforce policies affect the overall
business plan. Investing time and money in software solutions is the need of
the hour.