What is HR reporting software?

What is HR reporting software?

16 January 2023

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Modern businesses record a myriad of data and information in relation to their processes and performance. This is so they can track and measure what is going well and identify areas which need to be improved and developed. This data often forms the basis for what are known as Key Performance Indicators (KPIs). These are defined by KPI.org as, “the critical (key) quantifiable indicators of progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most”.

More often than not KPIs provide data on financial metrics such as sales and profit, customer metrics such as overall number and satisfaction, or process metrics such as a percentage of defects or calls answered in a set timescale. But it’s becoming more common for companies to measure people and HR metrics. The easiest and most cost-effective way to measure HR metrics is to invest in HR reporting software.

HR reporting software can bring a vast amount of benefits for your business, as we explore in more detail below, as well as what key HR metrics you can track.

What can HR reporting software help me track?

HR software captures a wide range of HR information which can be analysed, assessed and reported on in order to help a company achieve a number of aims. Among others, HR software can help you to track:

  • Employee headcount
  • Length of service
  • Turnover
  • Sickness absence rates
  • Diversity and demographics
  • Annual leave usage

By having this information readily available and by monitoring it on a regular basis, a business will benefit in many ways.

How can HR reporting software benefit my business?

“What gets measured, gets done”, is a quote that is often heard and is widely attributed to business guru Peter Drucker. In the context of HR reporting software, looking at people related metrics can tell you all sorts about your business. Therefore by measuring this information, you can identify trends, what is going well and where changes might be required so that things get done. If we take the data areas above, regular monitoring and analysis can really make a difference and improve a business.

  • Employee headcount – This might appear very obvious but if you have too many or too few staff, then your business will be inefficient in a number of ways. By tracking your employee headcount and planning effectively, you can run a more efficient and cost-effective business.
  • Length of service – An employee’s length of service can be used in a number of ways. Length of service is an indicator that someone is happy at work and that they are loyal, engaged and committed. Some companies increase salary or holiday entitlement based on length of service, so actually having that information available is crucial to make sure any changes happen in a timely manner. Various employee rights are also linked to length of service, so knowing this ensures that your business makes correctly informed decisions which are legally compliant.
  • Turnover – By using HR software to track and report on starter and leaver information, a business can clearly identify teams or departments where turnover is low or high and start to address areas of concern. Ultimately, employee turnover has a detrimental impact on a company’s bottom line. High turnover is also likely to indicate that there are culture, management or other issues affecting an area of a business.
  • Sickness absence rates – By using HR software to record and report on sickness absence rates, your business will have a clear picture of the number of days your employees are taking in sickness absence. By using this data you can identify trends, manage problems effectively and ensure that your business is not unduly affected by excessive staff absence rates.
  • Diversity and demographics – When employees join a business, they typically provide lots of personal information and many businesses don’t use that data at all. By tracking the diversity and demographic information of staff, a business can see if it is inclusive, if it has staff who may need additional support or adjustments and can look at succession planning needs if you have an aging workforce.
  • Annual leave usage – All employees will have annual leave entitlement to use throughout a year, but if your business doesn’t use HR software it is difficult to track and ensure accuracy of who has taken leave and what leave is still to be taken. Many businesses end up in the situation of lots of staff requesting leave in November and December because they haven’t kept a track on using it throughout the year. By using HR software and regularly checking annual leave usage you can identify staff who haven’t used entitlement and ensure they take it regularly throughout the year to support their wellbeing and have time off.

HR software reporting in HRX

HRX has a dashboard screen which provides employees and managers with a number of built in reports and key pieces of HR information at their fingertips. Why not take HRX for a FREE 30 day trial and see how it can help to transform your business.

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