HR recommendations have to be data-driven to interest the board

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Beleaguered human resources departments have historically struggled to provide data that can be regularly benchmarked and measured against targets. But today, innovation in HR technology provides an opportunity for businesses to deliver concrete insight to the board, that can be used to create a structured and measurable approach to ensure employee happiness, and the positive impact it has on a business.

There’s always been ambiguity over the true impact of staff turnover, morale and motivation in the board room, however the rise in instant intelligence, and an advancement in people analytics tools is allowing companies to measure important things that haven’t previously been measured. Including culture, leadership and vision – as well as their definitive impact on the business’ financial performance.

If HR managers measure their 2nd P&L properly they can directly affect the bottom line. An pakistan phone number resource abundance of studies backup this theory. For example:

Productivity of highly engaged staff is increased by 12%. (University of Warwick).
Engaged employees in the UK take an average of 2.69 sick days per year; the disengaged take 6.192. (KPMG) and sickness absence costs the UK economy £13.4bn a year. Almost £2bn of which is thought to be not genuine. (CBI).
Companies with both highly aligned cultures and highly aligned innovation strategies have 17% higher profit growth than companies with low degrees of alignment. (Strategy + Business: The Global Innovation 1000: Why Culture Is Key).
70% of engaged employees indicate they have a good understanding of how to meet customer needs; only 17 % of non-engaged employees say the same. (Right Management, Measuring True Employee Engagement, A CIPD Report).
Highly engaged employees are 2.5 times more likely to stay at work late if something needs to be done after the normal workday ends. (Temkin Group).
Replacing an employee costs on average around £30,000 and it takes up to 28 weeks to get them up to speed. (Oxford Economics). Furthermore, over half of the employers in the latest CIPD representative survey indicated that hiring difficulties are becoming more commonplace with ‘hard-to-fill’ vacancies on the rise.
Companies who implement regular employee feedback have turnover rates 14.9% lower than companies who provide no feedback. (Gallup).
These stats are hard to argue with. No business benefits from absenteeism, unexpected resignations and from carrying unmotivated, unproductive individuals.

With this advancement in HR technology, managers, business owners and HR leaders really do have the power to influence productivity and performance through listening. It can also provide businesses with the ability to benchmark their performance against other companies, allowing an understanding of whether they are performing ahead, or behind their peers when it comes to people and leaders. The new intelligence held is also uncovering much more defined relationships between People and Profit, and Leadership and Loss.