Long reserved for other company departments, such as the finance department, Business Intelligence (BI) is now an indispensable tool for the human resources department.
By centralizing and making its data more reliable, as well as automating certain processes, the HR department can meet the many challenges it faces: talent management, quality of work life, recruitment, payroll management, etc.
This makes it possible to reach more informed decisions on a daily basis, while at the same time increasing the company’s performance.
The challenges of Business Intelligence for human resources
Nowadays, the HR department faces many challenges and is entrusted with new responsibilities: increasing company performance while reducing costs, assessing risks and identifying weak points in the organization, measuring the consequences of the actions implemented, etc.
These are tasks that cannot be accomplished without the help of data: hence the importance of Business Intelligence, which makes it possible to centralize a large volume of data from scattered sources, to sort it and to process it efficiently.
The company can then rely on HR dashboards that provide reliable information on the company’s human capital. These valuable management tools make it possible to measure the impact of each employee on the structure’s performance, while identifying areas for improvement and cost control.
Thus, with BI, it is possible to calculate salaries and performance-related bonuses in real time. The human resources department can therefore ensure that the amount is relevant to its strategic objectives.
Furthermore, business intelligence is a real asset for talent management. By analysing data, it is possible to better understand employees and to implement appropriate actions to retain them, boost their commitment and motivation or attract new recruits.
Managing talent also means anticipating and identifying the training needs of each individual in order to develop the key skills the company needs. BI facilitates the implementation of a professional training system and the establishment of a dedicated budget.
Finally, predictive analysis allows the company to see the future and anticipate its future needs in terms of training, skills or qualifications.
The Business Intelligence tool: an asset to improve the quality of work life
Improving the quality of work life (QWL) is an essential task for the human resources department. Business Intelligence software is a valuable tool for analysing employee feedback collected through regular surveys or a QWL barometer. HR reports can thus be compiled to measure the well-being, motivation, and performance of employees.
Studying this data is also very interesting to better understand the needs, obstacles, and engagement drivers of new recruits. The company can then improve its recruitment process, but also put in place appropriate measures to ensure the successful integration of new talent.
As for absenteeism, which is one of the major problems of the HR department, it can also be analysed to understand the underlying causes, which are often linked to a sense of unhappiness at work. Big Data makes it possible to analyse this phenomenon qualitatively and not just quantitatively.
In addition, Business Intelligence is a powerful tool for social dialogue, which improves the company’s internal communications on a daily basis. Thanks to indicators and figures, issues relating to quality of work life can be addressed more objectively, leaving aside the subjective opinions of individuals.
In the context of a new strategy or a major organizational change, communication is also essential to support, reassure and convince employees. Thanks to data, it is possible to quantify the level of acceptance of a given project, and then to implement relevant actions to drive change: awareness raising, workshops, training, etc.
Finally, professional equality is an important factor in guaranteeing a good quality of work life for all employees. Business Intelligence makes it possible to assess the company’s situation in terms of gender equality and senior policy, as well as to evaluate the impact of measures taken on absenteeism, motivation and remuneration.
Features of a human resources management information system
To exploit the full potential of Business Intelligence, the HR department must be able to rely on a suitable tool: the human resources information system. Indeed, this solution offers a wide range of features that will help the HR department perform its daily tasks:
- It combines all the data on employees, with a digital personnel file, job descriptions and skills assessments.
- It is used to validate leave requests and manage absences.
- It contains all the applications and CVs received by the company, along with a real-time follow-up of the job offers published.
- It simplifies the management of expense reports, their archiving and accounting export.
- It centralizes all salary slips and other elements related to payroll.
- It contains the history of the training courses taken by the employees.
- It gathers feedback from employees and information about the quality of work life.
- Finally, it integrates internal communication features: news feed, sharing of information or surveys, etc.
Of course, the features of the HRIS may vary according to the specific needs of each company, but also according to the tool chosen. A distinction is made between SaaS (software as a service) and on-premise tools:
- The former, which is entirely digital and accessible from a simple browser, has the special feature of hosting all the data in the cloud, which offers great flexibility.
- The latter, installed directly on internal servers, allows the company to keep control of its data, which can be checked and processed even without an Internet connection.
In all cases, this Business Intelligence tool makes it possible to monitor a number of key indicators (KPIs) relating to the workforce, salaries, recruitment and social climate, using HR dashboards that are updated in real time.
Choosing the right Business Intelligence solution for human resources management
The choice of a suitable HRIS is crucial to help the company exploit the full potential of its HR data. After having carefully defined its needs and objectives, it can use different criteria to select the perfect solution.
Above all, a good BI tool is intuitive, ergonomic and easy to use. Indeed, it must be adopted quickly so that users can carry out their daily tasks autonomously. The time saved will allow them to focus on higher value-added tasks.
Business Intelligence software also means flexibility, particularly in terms of operational evolution. The needs of a company are constantly evolving and no one can predict which features will be indispensable in 1, 2 or 5 years. That’s why it’s best to choose a flexible and scalable solution.
In addition, the HRIS tool must be easy to integrate into an existing software ecosystem and be linked with other company solutions for even greater efficiency. Connectors and APIs are essential to guarantee perfect interoperability of the system.
Another key issue is the maintenance of the solution. The solution must be updated regularly by the software company, whether for security, performance or functionality reasons. The company is thus guaranteed to integrate a tool capable of meeting its requirements over the long term.
But the deployment of a BI solution is not only a matter of technology: it is also and above all a human project. Resistance to change on the part of employees, for example, must be taken into account when selecting software so as to make the transition to a new way of working easier.
The human aspect is also very important for the software company: being able to count on an available and reactive partner, providing personalized support, is a real relief for the company. The quality of the customer support (which should preferably be in French) is also one of the essential criteria to consider.
From payroll to recruitment, through talent management and QWL, Business Intelligence is a valuable ally to support the HR department in its daily tasks. Choosing a high-performance HRIS tool, with features adapted to the company’s needs, is therefore essential.
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