Human Resources management (HRM) is responsible for maintaining an organization. HR professionals attract, hire, develop, and retain top talent for the company’s growth. 

But do you know how to make data-driven decisions in HR? HR needs to make data-driven decisions to ensure that growth. ProKPI is a powerful KPI management software that can help HR make data-driven decisions.

ProKPI allows HR professionals to track and measure key performance indicators (KPIs) related to all aspects of HR. The HR aspects include recruitment, performance management, employee engagement, training, and development. 

Today, we will discuss how ProKPI can help HR fill up the aspects alongside the best practices of ProKPI. Welcome aboard!

The Problems with No Data-driven Decisions in HR

Many negative consequences can occur when there is no data-driven HR decision-making. The company has a high rise in cost, the productivity becomes slower, and employees lose their morale feelings towards jobs. It increases risks and brings the company to a downfall.

1. Increased Costs

HR will make costly decisions regarding time, money, and resources without data. So, the wrong employee will get the wrong task and fail.

2. Reduced Productivity 

Employees will lack the necessary skills and knowledge when HR is not making data-driven decisions about their development. This can lead to reduced productivity and increased errors.

3. Decreased employee engagement

Employees may feel unappreciated when HR does not make data-driven decisions and miss their work bonuses. This can lead to an employee bounce rate.

4. Poor Employee Morale

If HR does not rely on objective data, employees may feel that they are being treated unfairly. This can lead to poor employee morale and diminish workplace satisfaction.

5. Increased Compliance Issues

If HR decisions are not made based on data, HR would have made decisions that do not comply with state laws and regulations. Companies can get legal penalties for this issue.

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How ProKPI Helps to Take Data-Driven Decisions of HR?

ProKPI is a goal management and HR analytics tool that helps organizations make data-driven decisions. It provides real-time insights into key HR metrics, such as employee turnover, performance, engagement, and project updates.

Human Resources (HR) is a critical function for any organization. They also manage employee relations, their compensation, and their benefits. The HR department is also responsible for:

• Recruiting new employees
• Hiring employees
• Onboarding employees
• Training employees
• Developing Employees. 

To be effective, HR departments must use data to understand the current state of the workforce, identify trends, and make predictions. ProKPI holds all the necessary data to accomplish effectiveness for HR.

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What are The Use Cases of ProKPI in HRM?

ProKPI can help decide on hiring, training, performance management, compensation, and retention. Eventually, it will make dedicated employees with higher levels of expertise. 

Hiring Employees

HR professionals can use ProKPI to track KPIs and decide the time to hire, cost of hire, and quality of hire. They can use this information to identify areas where the hiring process can be improved.

Training Employees

HR professionals can use ProKPI to track their insights with learning goals. The goals might help the training by enriching the following:

• Employee satisfaction 
• Employee knowledge 
• Employee skills after training
• The impact of training on performance

Performance Management

HR professionals can use ProKPI to track employee performance ratings, engagement, and turnover KPIs. 

Compensation

HR professionals can use ProKPI to track KPIs regarding:

• Employee satisfaction with compensation
• Employee salaries relative to market value
• The impact of compensation on employee performance

Retention

HR professionals can use ProKPI to track employee turnover rate, engagement, and satisfaction KPIs. 

5 Specific Ways that ProKPI Can Help HR Professionals

1. Identifying and Tracking Key Performance Indicators (KPIs)

ProKPI allows HR professionals to create and track KPIs for their workforce. This can include hiring, training, performance, engagement, and retention KPIs. 

They can identify trends and patterns while tracking KPIs over time. It can help them identify areas where improvement is needed.

2. Generating Reports and Dashboards

ProKPI allows HR professionals to generate reports and dashboards. HR can use the dashboard to visualize workforce data. This can help HR professionals to analyze key trends and employee potential quickly.

3. Setting and Tracking Goals

ProKPI allows HR professionals to set and track goals for their workforce. This can help HR professionals ensure their HR practices align with the organization’s goals.

4. Identifying and Addressing Workforce Gaps

ProKPI can help HR professionals identify workforce gaps, such as skills gaps. They can use this information to develop programs and initiatives to address these gaps.

5. Evaluating The Effectiveness of HR Programs

ProKPI can help HR professionals to evaluate the effectiveness of their HR programs. They can track the impact of these programs on KPIs, such as employee engagement or retention.

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The Best Practices for Using ProKPI in HR

HR professionals can set clear goals, collect task data, create reports, and share ongoing insights with the team to use the full effectiveness of ProKPI.

• Set Clear Goals: What do you want to achieve with ProKPI? Once you know your goals, you can identify the specific KPIs you need to track and evaluate by the end of the period.
• Collect Task Data: ProKPI can record the goals and objectives set by individual employees. So, you can collect all the employee data in detail in one place.
• Create Reports: ProKPI allows you to create custom reports and dashboards that visualize your data in a way that is easy to understand.
• Share Insights: Once you have analyzed your data, share your insights with your team so that they can remember to adjust their work.

Conclusion

ProKPI is a powerful tool that can help HR to make data-driven decisions. First, use the Admin & HRM Section and analyze the workforce of your employees. Then, ProKPI Goal management can help you shift from making decisions based on guesswork to making decisions by workers themselves.  So, gather feedback by surveying the goals. This can help you identify areas for developing working processes, policies, and culture.

FAQs

How to use data to make decisions in HR?

You can use objective data from ProKPI and make decisions in HRM. ProKPI provides data to analyze these: 1. Recruitment Strategies. 2. Compensation and Benefits. 3. Streamline Bonus & Payroll. 4. Improve Candidate Experience. 5. Measure and Improve Employee Engagement. 6. Diversify Hiring in a Meaningful Way.

How to collect data for decision-making?

You can rely on 6 steps workflow to approach the decision-making phase.  First, decide on your measuring strategy. Then, identify all the target areas. Next, use software like ProKPI to collect the data and analyze it. After that, decide on the data and present what you found out.

What is the first step in making data-driven decisions?

The first step in making data-driven decisions is strategy. You can focus on business management only when you have the right strategy. The strategy can arrive from a keen analysis of employee goals. ProKPI is an advanced tool to list the goals data and evaluate performance accordingly for a better strategy.

How does HR Make Decisions?

HR inspects the internal feedback and objectives to measure the employee progress in the company. HR professionals can use software like ProKPI to read all the data easily.  Then, they find the most effective ways of investing in the individual workforce. It saves money and resources and improves employee performance.