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What is HR reporting?

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1 minutes

HR reporting refers to the process of collecting, analyzing, and presenting data related to human resources activities, such as employee performance, turnover, and compensation. It helps organizations make informed decisions and track key HR metrics.

What is HR reporting and analytics?

HR software has revolutionized how businesses operate, especially regarding HR reporting and analytics. HR reporting and analytics might sound complex, but they’re really about clarity and action. 

At its heart, HR reporting presents the raw employee data—like the number of new hires, absences, or the timeframe from hiring a new employee to their full productivity. Think of it as the raw materials—the timber and bricks of a construction site. 

On the other hand, HR analytics is the architect—the intelligent system that extracts patterns from this data. It provides you with visualization through dashboards and graphs, enabling data-driven strategies and predictive analytics that guide business decisions. While HR reporting tells you your turnover rate, HR analytics unravels the story behind it, reveals the why, and offers solutions. 

Together, they empower HR managers, professionals, and C-suite leaders to make informed decisions about their human capital.

Why do you need HR reporting and analytics?

HR analytics takes data analysis beyond mere numbers; it unravels stories, allowing stakeholders to grasp the narrative of their company. With robust HR analytics, businesses can leverage data sets to assess organizational health, drive initiatives, and base decision-making on concrete data—not hunches. 

A recent Gartner report found that employee turnover rates across business sectors could be as high as 24% in the coming years. If you’re not on top of your HR analytics, such trends could creep up on your organization, resulting in unforeseen costs and disruptions. 

In essence, if you’re not actively monitoring and analyzing your HR data, you're navigating mindlessly, leaving your company vulnerable to unexpected pitfalls. HR reporting and analytics give your business the competitive edge it needs, ensuring you’re always a step ahead.

HR reports and metrics you should track

To truly get a grip on your company's health and dynamics, it's essential to keep a close eye on several HR metrics. Below are some of the fundamental reports and metrics that, when monitored correctly, can reveal deep insights into the well-being of your company.

Turnover and Retention Rate

Your turnover and retention rate is more than just a number—understanding it can shine a light on employee satisfaction levels, organizational culture, and even the effectiveness of your hiring process. A high turnover rate might suggest underlying issues like a lack of job satisfaction or ineffective management, while a strong retention rate often indicates a content workforce.

Employee Performance

Dive deep into employee productivity metrics to understand how your employees are performing. Regularly evaluating employee performance isn't just about commendations or critiques. These metrics can offer insights into onboarding processes and highlight areas needing improvement. They also offer a lens into whether employees have the necessary resources and training—and if their roles align with their skills and passions.

Time to Hire

This metric gauges the efficiency of your hiring process. A prolonged time to hire can suggest inefficiencies in the recruitment process, while a quick time to hire might indicate that you’re not being thorough enough in selecting the right candidates.

Absenteeism

Regular, unexplained absences can be symptomatic of deeper issues, be it job dissatisfaction, burnout, or personal problems. Tracking absenteeism helps HR teams intervene early, ensuring employees get the support they need.

Employee Engagement

While harder to quantify, employee engagement can be one of the most telling metrics about organizational health. Engaged employees are often more productive and loyal, contributing positively to company culture. Using surveys, feedback sessions, and other tools can help assess the level of engagement within your workforce.

These are just a few of the many metrics HR professionals can harness. By paying attention to these key indicators, businesses can foster a healthier work environment, leading to happier employees and better outcomes.

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Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.

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