How HR Management Software Helps Indian Firms with HR Analytics
A report published in 2024 shows an interesting trend among Indian companies. An unprecedented number of them are starting to use HR analytics for their important workforce decision like hiring, productivity improvement plans, employee engagement and retention strategies. There is a wider acceptance of the data derived from modern HR management software solutions for these purposes.
This shift isn't just a trend; it's a fundamental change in how organizations understand and manage their most valuable asset: their people. Can HR analytics transform workforce management in Indian businesses and how HR management software contributes to this? Find out in this blog.
What Does HR Analytics Mean, And Why Is It Important?
HR analytics, in simple terms, is the data about various human resource management factors collected via different means and methods, including HR management software. The intention of collecting data in this manner is to inform the decision-making process regarding a business's human resources. Key areas where HR analytics shed light on in this process are performance management, employee engagement programs, and employee retention drives.
Retrieving HR analytics is important for every organization that wants to make decisions about their workforce's well-being by factoring in even minute variations in employee behaviour, headcount, compensation, job satisfaction, and workplace culture.
How Analytics from HR Management Software Help?
HR analytics is the most empowering framework for the HR department in every organisation when it comes to optimising HR processes via refined strategies. These analytics not only provide valuable insights into workforce trends but also enable HR teams to make data-driven decisions on various fronts.
Performance Review and Improvement
With HR data about how productive and engaged their employees are, and how they are making use of the growth opportunities, companies have a more solid and realistic performance tracking. They can use those insights to formulate recommendations for their employees about the various ways through which they can improve.
Talent Retention Strategies
HR analytics offers a goldmine of information about your company’s star-performing employees and how likely they are going to stay with your company in the long run. This is often done by dissecting key trends like engagement levels, performance metrics, career progression patterns, and employee sentiment.
Employee Participation Improvements
Employees' level of participation in feedback sharing and other collaborative workplace initiatives carried out via the HR management software or other tools shows their satisfaction with the company. Human Resource Management teams can use such data to understand problems that affect their employees’ engagement and participation.
Operational Spending Optimisation
Analytics gathered from HR management software help identify processes that are not cost-efficient by analysing expenses across recruitment, training, and benefits. For example, HR analytics might reveal excessive spending on external recruiters when internal referrals yield better long-term employees at lower costs.
How Important Is HR Analytics for Businesses in India?
India's business landscape consists of over 63 million MSMEs (Micro, Small, and Medium Enterprises) as of 2023. They collectively contribute approximately 30% to the country’s GDP and employ over 111 million people. The organised sector, which represents over 5000 large enterprises, accounts for about 75-80% of formal employment, managing a workforce of approximately 30-35 million people.
With a workforce this large, the success, growth and scalability of many of these organisations largely depend on effective employee management. According to a 2023 Deloitte survey, 71% of Indian organisations, up from 48% in 2020, believe HR analytics is important for them in hiring the right talent and managing them efficiently. Beyond that, it helps create a performance-driven culture while making well-informed, data-driven choices for the future.
The adoption of modern HR management software featuring smart HR analytics has shown promising results. Companies leveraging these tools report a 25% improvement in their employee retention rate and a 20% reduction in recruitment costs. Top corporations like TCS, Infosys, and Wipro, employing over 1 million people collectively, have seen a 15–20% productivity boost after implementing HR analytics-driven strategies.
How Mewurk HR Management Software Simplifies HR Analytics for Your Business
Mewurk is an end-to-end HR and payroll management software for businesses that want to maximise the potential of HR analytics as a strategic driver. With its inclusive platform, Mewurk enables HR professionals to derive insights into their workforce dynamics while automating all core HR functions.
The platform's built-in modules—from biometric attendance monitoring to adaptable shift management, leave management, and payroll processing—interact to capture critical workforce information. This integrated ecosystem enables organisations to track employee lifecycle events, from hiring to offboarding, while having centralised document management.
Mewurk's strength as an HR management software lies in its robust analytics feature. The software has been brilliantly designed to turn raw operational data into actionable insights by function. HR leaders can report immediately on attendance habits, leave take-up, shift productivity, payroll trends, and more. Such analytics allow stakeholders to:
- Determine bottlenecks in HR processes
- Monitor key performance indicators in real-time
- Make evidence-based decisions on workforce optimisation
- Monitor compliance and policy enforcement
- Predict staffing needs and budgeting requirements
Key Takeaways
In a world where the success of a business is defined by its adaptability, companies must go beyond automating HR processes and leverage smart HR analytics for better decision-making. Implementing modern HR management software enables firms to have both operational efficiency and the analytic capabilities that maintain them as agile and informed organisations.
With the rich analytics offered by the Mewurk HR management software, businesses can not only maintain their workforce productively but also optimise it for maximum efficiency through informed, evidence-based decisions, thus benefiting long-term business success.
Want to learn more about Mewurk’s capabilities? Visit www.mewurk.com or email us at sales@mewurk.com.
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