Businesses have to continuously make important decisions that will depend on accurate reports of their workforce, and it is up to HR departments to carry out the reporting. Since different workers are typically at separate levels in their employee lifecycle, HR teams need to innovate time-saving and convenient methods of assessing and reporting.
HR systems can help the department track employee data and activities to improve the overall decision-making process of the enterprise and in this article, we assess the reasons why it can.
What does HR reporting entail?
HR reporting primarily involves observing employees while keeping certain metrics in mind. What this does is provide the company’s HR department with data points that can be used in processing things like employee benefits and payroll management.
The practice gives organisations the ability to analyze some factors like hiring rate, available roles, turnover rate, and the gender ratio of the workforce.
When reporting, the HR teams need to focus on some key metric for continuous improvement of the organisation. Some of the key metrics are;
- The population of active employees (on payroll).
- Employees level of qualification (or education level) for their current positions.
- Frequency of workers’ absence and the cost of their absence to the organisation.
- Percentage of new hires within the previous business.
- Types of job roles (according to departments and location).
- Cost of training new and existing employees.
- Optimal time for filling vacancies.
- Gender distribution
- Full-time Equivalent (time spent working by full-time employees) which can be used to analyze part-time workers too.
Why do HR teams make reports?
Using the data gotten from HR reports, companies can get a more comprehensive view of their operations and workforce. Some of the major benefits of HR reporting include;
- Reporting ensures accountability: By tracking the key metrics, an organisation can increase the accountability of their staff, including members of the HR team.
- It allows for transparency of data: Human resources management systems make it possible for employees to improve their engagement with the companies as they can rely on the leadership to make the best decisions based on accurate data.
- Helps organisations to develop strategies: Enterprises can use the metrics to develop winning strategies for their business operations.
Forms of HR Reports
Companies looking to gain insight into their workforce will have to implement one from the following forms of HR Reports.
1. Recruiting Report
This kind of HR reports provides in-depth information on the open positions as well as the candidates applying for them. It presents all the data points on the HRM system so that organisations can develop personalised and efficient recruitment processes.
This form of the report highlights metrics like the population of candidates per available positions, average time and cost to hire new workers and the progress of candidates in the recruiting process.
You can already see how keeping track of such data points can enhance a company’s hiring process by keeping them organized and giving them the advantage to compete for talent. HR systems can have a centralized database for generating recruiting reports in real-time to assist companies in attaining their recruitment ideals.
2. Compensation Report
It helps organisations understand the rate of earnings growth for their employees by tracking metrics such as incentives, over time, base salary, payroll deductions and paid leave.
Compensation reports allow HR teams to track all these data points in real-time as opposed to spreadsheets. With it, you can effectively coordinate open enrollment and current benefits administration using the obtained details on payroll deductions for health benefits sponsored by employers. Besides, this form of report encourages compliance with federal regulations.
3. Headcount Report
You can use the headcount report to measure your retention and turnover rates based on roles, departments and geolocation(for global companies). This form of HR report keeps track of employee population after hires, transfers and terminations so that you can get a comprehensive view of the trends of employee movement.
It pays attention to metrics like full-time equivalent, retention rates and turnovers to help you create other reports such as training cost summaries and employee attendance reports.
4. Performance Management Report
It provides an accessible report on employee performance to ensure that all the separate arms of the company are on the same page. With the performance management report, you can get in-depth employee information like productivity records and personal improvement plans.
Besides, companies can access the report in one place with HR systems so that their managers can provide honest and useful feedback on the performance level of their workforce.
5. Diversity Report
In compliance with federal regulations, some companies have to create comprehensive reports on the level of diversity in their workforce. Research shows that organisations with higher diversity are 35% more likely to provide top-notch performance.
This type of HR reports will highlight data points like gender, age and ethnicity about their roles and departments. You can use the information gotten to implement better human resources policies and strategies to personalize and improve the working experience for your employees.