People  Technology 

HR Analytics: Data as a Key to Getting to Know Employees

You do not need a crystal ball to be able to tell whether the people on your team are satisfied or whether they are about to give in their notice. Analytics can positively affect individual HR processes and more easily navigate the firm towards meeting its strategic objectives.

Data are a highly valuable source of information and firms should use them regardless of whether they are tackling a certain issue or not. HR analytics can deal with the whole lifecycle of an employee. It is of assistance even before the firm hires the employee – during the selection procedure or in setting up processes and searching for and selecting talent, it identifies employees with the greatest potential who will fit in with the team, be successful at the firm and remain in it for a long time.

Analytics processes data in a way that enables us to gain a better understanding of employees’ behaviour, adjust the working environment to them or forecast events before they occur. Besides traditional information about the selection procedure, the employee’s placement, his or her career and day-to-day life, it makes it possible to assess, based on the collected data, how happy the specific employee is at work or what factors affect his or her performance. Data also serve as a basis for efficiency, occupational health and safety, sickness rate and other predictive models. Last but not least, HR analytics is helpful in predicting employee churn and generally in structurally addressing retention.

The first step towards knowledge? You must be aware of the problem and understand its context. In respect of the former, you can make use of smart reporting or data visualisation with an emphasis on the context of the submitted information. In the subsequent step, advanced analytics addresses what the optimal course of action/solution for the identified problem should be.

RETENTION ANALYTICS BESTS EMPLOYEE CHURN

You may know in advance that a key employee will hand in their notice but the news may also come as a bombshell for the firm. In any event, you may make use of retention analytics, which has a clear objective: telling which employees are at the greatest risk of leaving and what the reasons for this are. What is the result? Improved targeting in recruiting new employees, work with the existing ones and elimination of the high costs associated with undesirable employee churn.

What is Retention Affected by?
6 Key Examples

  1. Personal time off (a consultancy) – Long-term holiday, unpaid leave or maternity leave are stabilising factors having a highly positive impact on employee loyalty.
  2. Salary and promotion (a consultancy) – Employees are motivated by a salary increase to a much greater degree than by promotion; promotion without a salary increase is a negative factor.
  3. Fast-track and skip-level promotion (a consultancy) – Many HR managers are under pressure from the new generation, which is more dynamic and seeks to change the terms of promotion to make them more flexible and give millennials the chance to grow fast. However, the results of our analysis show that fast-track and skip-level promotion is, for the most part, a destabilising factor, with the newly promoted employees tending to leave soon.
  4. Shift work (Shared Service Centre) – Shift work is time-consuming and mainly organisation-intensive and it has been shown that employees working shifts prefer a certain regime: a reasonable number of shift types per month and, ideally, a minimum of evening and night shifts. If night and evening shifts are inevitable, their volume should not grow over time.
  5. Diversity (Shared Service Centre) – Contrary to the current trends, data often show that employees are more satisfied, and thereby tend to leave at a lower rate, if the team is homogeneous in terms of both age and nationality. More than three different nationalities on a single team are a clearly destabilising factor.
  6. Team Size (telephone operator) – Employee churn may also highly correlate with the team’s size, whereby it has been shown that the optimal team size is approximately 5-10 members. Smaller or larger teams tend to be riskier in retention terms.

If your firm has 200 employees, of which only five have left in the past two years, it will be difficult for us to design the model and the results will most probably be statistically insignificant. Therefore, not only the overall number of employees is important, but so is the frequency of the phenomenon being observed. These two things are highly interrelated; therefore, if the frequency is low, a longer data history is necessary and, ideally, a greater number of employees. In respect of a high frequency, a short history and a small group of employees is sufficient. In most cases, the bare minimum is at least one year of data with at least 100 employees.

Find out more about HR Analytics, achieve your strategic goals.

Technology  Law 

The Electronic Signing of Documents: A Phenomenon in the Time of Digitization, but a Necessity in the Time of Crisis

Czech legislation permits companies, and their clients, to use several kinds of online communication, including those with the use of remote contract signing. Although it is not regulatory news, there are companies that have not yet embraced such digitisation, even in these times. During the coronavirus crisis, interaction without physical presence is not only an interesting bonus, it is an outright necessity. We have therefore summarised key information that will help companies avoid disruption in communication with their customers, continue entering into contracts, and still meet all the requirements of current measures. 

25. 11. 2020
Deloitte Live  Technology 

Trading is like a high performance sport, even the slightest misstep costs a lot of money, says Otakar Šuffner from FF Trader

Expansion into 180 countries, monitoring tens of thousands of accounts a day, a year-on year growth from 1465 % to 2356 % and, for the second time in a row, the Fastest Growing Rising Star award winner for Central Europe in the Deloitte Technology Fast 50 competition. This is FF Trader, a company that finds successful traders on financial markets through its FTMO platform. “When we started out five years ago, a few similar platforms had already existed. We were not unique but as we continued growing and adding more services, we became an established trading platform,“ says Otakar Šuffner, FF Trader CEO. 

19. 11. 2020