Economics/Business

Importance of statistics in human resource management/Why adopt

Statistics in HR can identify trends, set goals, reduce errors, monitor processes, optimize recruitment, refine performance evaluation, and increase talent retention. Importance of statistics in human resource management

For years, the culture of evaluating human resources has always focused on more practical than theoretical processes. 

This means that thinking about statistics in HR was pretty narrow. Indicators , numbers, graphs to arrive at a result? All these common elements for data measurement were still far from this sector.

It just so happens that times have changed: now, the idea of ​​being guided through informed information is not just an obligation of the finance or marketing department, for example. HR needs this resource to bring more and more tangible results.

Why adopt the right HR strategies?

Before we talk about statistics in HR, it is necessary to explain the importance of strategies in human resources

We know that it is an essential sector for the company, responsible for not only selecting employees, but taking care of their management while they are in the company. Importance of statistics in human resource management

The adoption of the right strategies is a way to avoid choices that are not aligned with the purpose of the business, and thus extract the best from employees. 

Therefore, this type of strategy can provide the following advantages:

  • candidates more adjusted to the values ​​and objectives of the business;
  • monitor results and long-term performance and use this information to make decisions;
  • management focused on people ;

How important is statistics in HR and a data-driven industry?

Now that we understand how strategies are an important factor for the company, especially for the selection and care of employees, let’s know what are the benefits of using statistics for this sector.

1. Point out trends

Statistics tools like charts and indicators are very important to monitor what is happening. 

But a big advantage of using them is what their data can offer to HR work: trends . 

The information collected helps to understand in which direction an action will take the company.

For example, suppose that the company decides to implement a new type of recruitment, in order to find more candidates who have an X characteristic. Importance of statistics in human resource management

Monitoring the results, not only of the selected people, but also of how they behave over time, is a way to find out if the trend of this new method is positive.

2. Assists in setting concrete goals

Another important point is the help to set goals that are really possible. Data helps to monitor a strategy over time. 

It is possible to understand what are the results that that strategy is providing in a certain period for the company, and if this will lead it to achieve the objective

This is very important as it allows the company to rethink a tactic to align it with the goal.

3. Reduction of errors and failures

Of course, with the possibility of monitoring everything related to the HR sector with accurate data, there are more chances of success. 

What happens is that, if you can follow strategies from a deeper point of view, you can see what is happening, which part is getting in the way of achieving results. 

In addition, it avoids dealing with guesswork and provides the certainty that that decision is the most correct.

4. Process control

Monitoring data is not something that is only done on a one-time basis. Of course, depending on the strategy, it can be used for a specific moment. Importance of statistics in human resource management

But, in general, there will always be indicators to analyze what is happening in real time with the business.

This is essential to understand if the planning is on the right track, and also, to obtain greater control of the processes. That way, you can direct them to the result.

5. Improves recruitment and selection

Finally, it is evident that using data and statistics in HR potentially improves recruitment and selection outcomes . 

This type of tactic helps to correctly filter candidates who are really in line with what the company is looking for.

Think that before, human resources had to spend hours and days analyzing resumes, conducting interviews to find the right candidates. 

Now, with the use of the tools, it is possible to significantly reduce the time of this work and, in this way, dedicate themselves to tasks that require the full performance of the sector.

6. Improves employee performance evaluation

On a day-to-day basis, HR stores a large volume of data about employees, for example, absenteeismtimesheet , time of execution of activities, productivity, among others.

In this way, statistics are essential for HR to evaluate the performance of employees. 

Data analysis prevents them from being evaluated only by the perception of people, which makes the process more assertive. Importance of statistics in human resource management

7. Increases talent retention

The turnover rate is undoubtedly one of the major concerns of HR, both in terms of finances and in relation to the company’s organizational climate , so finding ways to increase talent retention is essential for HR.

Using statistics increases the chances of finding candidates more aligned with the company’s values ​​and with greater potential to stay with the company for a longer period. 

In addition, it is also possible to understand the behavior and expectations of employees and, through this information, offer benefits that are more in line with their needs.

Still, it is possible to look for ways to improve the organizational climate to make employees more motivated.

How to use statistics in HR and make it data driven?

The first step is for the company to have a well-defined purpose for using the data. This is an important step so that you can stay focused regardless of what happens, and it is also what will help you find the right indicators. 

After this process, it is time to map the components used in the analysis, such as emails, spreadsheets, reports and other informative elements. Importance of statistics in human resource management

From there, with all the data together, it’s time to start the analysis. It is divided into four parts:

  • information collection : more than capturing the data, this part will define the sources of this information;
  • definition of metrics : here, indicators or what we call KPIs are determined , they will be used by the sector;
  • crossing of information : now all the data collected is analyzed in order to know what is the relationship between them;
  • creation of scenarios : finally, with the analysis of the information, the process of idealizing possible scenarios begins.

So far, we’ve talked about the importance of strategies such as using statistics in HR and making this sector increasingly data-driven. 

This is a great action for the human resources sector to be more effective in its objectives. 

Statistics in HR provide a greater probability of finding candidates aligned with the company’s values, in addition to ensuring better monitoring of existing employees. 

By accurately evaluating the performance of both new and old employees, it is possible to develop strategies that are in accordance with the team’s profile and the organization’s objectives. Importance of statistics in human resource management

We hope this post was helpful for you to understand the importance of statistics in HR.

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