FROM DATA OVERLOAD TO ACTION: TURNING WORKFORCE DATA INTO BETTER DECISIONS

There is no want for data for today’s employers. They have access to enormous amounts of workforce information, including payroll, benefits, turnover, hiring, attendance, workers’ compensation, employee engagement, time and labor, and more. But there is a difference between an onslaught of data and being able to use it.

Often, the challenge is that data lives in disconnected systems; different platforms define or organize information differently; leaders don’t know which metrics matter; raw numbers don’t necessarily explain why something is happening; and business leaders may look at reports without seeing the underlying trends.

More workforce data is not a competitive advantage. Accurate, connected, understandable and actionable data is the secret weapon.

PEOS ARE AT THE INTERSECTION OF WORKFORCE DATA

PEOs are uniquely positioned to help employers manage the workforce data they must track. PEOs already interact with various aspects of an employer’s workforce, from payroll and benefits to recruitment and employee retention. This view into an organization allows PEOs to connect the dots in ways that may not be obvious to the employer, who is looking at even more organizational data.

PEOs add value by interpreting the data and translating what it means for the business. For example, an employer can look at payroll data, turnover data, benefits data and workers’ compensation data. Viewed separately, it tells a limited story. When you connect the verticals, patterns may emerge that management should address.

CLEAN DATA IS PARAMOUNT

One of the biggest challenges for businesses is data quality. Quality insights are not built on bad data. Data challenges stem from a host of problems. Duplicate records, inconsistent employee classifications, outdated information or reliance on manual data entry can cause these issues. Reporting periods may even differ.

Clean data does not mean the data needs to be perfect to provide useful insights. However, it does need to be sufficiently accurate, consistent and organized. When this occurs, business leaders can use the information to make targeted business decisions.

This is where the right PEO makes a world of difference. Knowing what information or data matters to the business helps determine the best-fit PEO. The technology PEOs employ can streamline data collection and make backend HR processes and thus the data they provide, more coherent.

Good data shifts the conversation from “What does this report say?” to “What should we do about it?”

MOVING FROM METRICS TO INSIGHTS

Once you have a system to mine clear data, you need to act. Encouraging business leaders to answer a few key questions can move the conversation away from metrics alone, which no one knows what to do with, to matters that will move the needle for the organization.

Questions may include the following examples.

Why are employees leaving? A turnover rate matters, but PEOs can analyze turnover by department, location, compensation, position, manager and benefits participation. When looking at a clearer, more interconnected picture, patterns may come to the surface worth investigating.

Are benefits delivering value? There is the potential for benefits data to be examined in concert with participation, employee demographics, retention and other measures. Looking at a fuller picture can easily inform benefit offerings that may or may not work, instead of basing decisions on cost alone.

Where are workforce costs increasing? Costs exist for employees at every level and in every transitional area. Data can help spot trends as it relates to payroll, overtime, hiring, workers’ compensation and other workforce costs.

Where are the operational risks? Alone, issues like absenteeism, workplace incidents and compliance challenges are worrisome, but when they are analyzed together, they may point to a bigger problem worthy of attention.

PEOS SHOW VALUE BEYOND THE TECH SOLUTION

A dashboard detailing turnover rates does not tell the entire story. Data strongly drives many PEO solutions; however, insights come with expertise.

A PEO with people who know how to interpret the data can help employers move from data overload to leaders armed with information, insights and an action plan. When PEOs bring together technology, HR expertise, data interpretation, compliance understanding and how it fits within client operations, they are valued partners.

In short, the PEO provider’s technology is a support tool, not a human replacement that can discern nuance.

THE ENVIRONMENT MATTERS

PEO brokers know every business has a specialized fit. Businesses vary dramatically, and the HR challenges they face are incredibly varied in size, workforce structure and HR complexity. Having access to a curated ecosystem of trusted PEO providers, technology and business solutions gives brokers the flexibility to find the best fit for each client’s needs.

Brokers can create the right environment or ecosystem to fit client needs because one technology platform likely won’t do everything. It boils down to what works best together.

ASK GREAT QUESTIONS, NOT COLLECT MORE DATA

Another dashboard for business leaders to interpret is not the answer. It is consulting with these leaders and encouraging them to ask better questions. Where are we losing employees? Why? Which workforce investments produce results? Where are the forthcoming risks?

Workforce data isn’t about numbers; it is about the people behind the numbers. The rubber meets the road when leaders can make clear decisions based on data-driven insights that create a better workplace and a healthier organization.