USA 
United Kingdom
A recent report from Ciphr found that only a third are fully leveraging people data to inform workplace decisions.
The survey, which included 300 HR professionals, found that just 32% believe their organizations are utilizing this data effectively, while a mere 36% think their companies actively seek HR input for business decisions.
Claire Williams, Chief People and Operations Officer at Ciphr, criticized this approach as "incredibly short-sighted."
According to Williams, neglecting to use people data can significantly impact overall company performance, as personnel costs often constitute at least 80% of an organization's profit and loss (P&L) statement.
"It's important to recognize the impact that utilizing people data can have on overall company performance," Williams said in a statement.
"This data should be scrutinized and leveraged in every way possible – the same way many look at their sales, marketing, and pipeline data."
Williams emphasized that without in-depth workforce reporting, it becomes challenging for business leaders to address employment issues such as retention or training needs.
"As a business, could you easily identify your risks in relation to turnover or burnout, without in-depth workforce reporting?" she added.
"HR teams need to be able to access and utilize robust people data to answer these questions. Especially when the HR profession is becoming more recognized at board-level for its strategic value."
Key HR metrics to track
The report outlines several critical HR metrics that organizations should track to make informed decisions:
Employee turnover rate: This is seen as the most crucial metric, providing insights into how often employees leave the company and helping identify underlying issues that may need addressing.
Employee engagement: Tracking engagement levels can reveal how connected and motivated employees feel, which directly impacts productivity and retention.
Quality of hires: Assessing the effectiveness of hiring processes ensures that new employees are a good fit for the company and contribute positively to its goals.
Absence records: Monitoring absences helps identify patterns that might indicate broader issues, such as employee dissatisfaction or health problems.
Employee performance measures: Regular performance evaluations provide data on individual contributions and highlight areas for improvement or development.
Reasons for absences: Understanding why employees are absent can help address any systemic issues within the workplace.
Williams underscored the importance of people data in identifying and harnessing talent, which is crucial for business growth and success.
"Having an improved understanding of your workforce can help instill business confidence that you can scale your people in line with forecast growth," she said.
Accurate people data can inform workforce planning, allowing companies to hire 'just in time' rather than reacting to capacity gaps that affect customer service. It also provides a clearer, evidence-backed picture of how long it takes for new hires to become fully productive.
