How To Use People Analytics To Impact Company Culture

People Analytics

Data doesn’t lie.

Within the last year, Deloitte found that 56% more companies are correlating people data to business performance, and 50% more are using people data to predict business performance. Clearly, using people analytics to impact company culture seems like a no-brainer.

If data is the key, then what data do you need as a people professional, to be effective at shaping the culture at your organization? That’s what this post is all about.

We’ll take you through the people metrics you can analyze, interpret and action to make a real difference. Let’s get started.

Metric #1: Employee Turnover Rates

As you’d know, employee turnover refers to the number of employees you need to replace or re-hire due to people resigning or being separated from your company.

The ‘formula’ to calculate the ‘employee turnover rate’ is to divide the number of people who’ve been separated from your company by the ‘average’ number of employees during a specific measurement period.

So for example, if there were 20 employees at the start of your measurement period, and 30 at the end, your average number of employees is 25. If 5 employees quit their jobs during this period, your total employee turnover is 5/25 = 0.2 or 20%. Expressing this metric as a percentage provides a more insightful perspective.

How Do You Use It To Improve Culture?

The higher your employee turnover rate is, the more employees you need to re-hire. This means higher recruitment costs, which can eat into your profitability.

You can use this data to figure out what’s causing your turnover rates to be high. Is it a lack of training and support given to your employees? Or perhaps dirty politics that are ruining your work culture? The numbers need to be followed up by an in-depth investigation into the facts that lead up to it!

If you discover the real cause of the issue, you can keep recruitment costs in check, improve overall profitability, and maybe even improve your chances of being nominated for a ‘best place to work’ award!

Metric #2: Interviews Per Hire Ratio

This metric, as the name suggests, is the number of interviews you conduct to employ 1 person at your company. So for example, if you conduct 10 interviews to hire 1 person at your company, the ‘Interviews Per Hire Ratio’ is 10.

How Do You Use It To Improve Culture?

The interview to hire ratio is an important one to measure the return on your recruitment marketing investment. If the ratio starts to increase beyond the industry average, you need to ask your hiring team the following questions:

What’s causing the delay in hiring the right candidates?
Which roles are taking longer/more interviews to fill and why?
At what stage of the recruitment process are the number of interviews rising?
Do you have a process in place to determine ‘culture fit’ during these interviews?

Answering these questions will provide you deeper insights on how you can get the number of interviews you conduct in check. The goal is to make your hiring as efficient as possible, in a way that you make absolutely no compromises on ‘hiring for culture’.

As Todd Raphael, editor in chief at ERE.net says “Hiring for cultural fit above skills is a great idea because you never know how much an employee will be developing, growing and changing over time — they could be in a completely different role by next year.”

Use this data to make the best hiring decisions that are in line with your culture, because you can always train employees for developing their skill sets in the future. You’ll never go wrong with this approach!

Metric #3: Number Of ‘Recognitions’ Given

In the context of employee recognition and using a platform like Redii, measuring the number, and quality of appreciations/recognition given to employees is key to improving your company culture. Measuring the number of ‘thank you notes’ sent, or ‘high fives’ given, or ‘appreciation notes/compliments’ given are things you should monitor as a culture change evangelist.

Within the Redii platform, we have something we call the ‘recognition wall’ which allows employees to openly appreciate one another online. Have a look below at what a ‘thank you’ recognition looks like:

And here’s what a ‘compliment recognition looks like:

How Do You Use It To Improve Culture?

Using this information, you can begin to see employee recognition as a ‘trend’ at your workplace. If engagement on the platform is rising, that’s a clear indicator that your culture is being positively transformed.

Analyse the folks that are using the platform regularly and the ones who are not, and why. Organize one-on-ones with these employees to understand their point of view and take action on the insights you gather to boost overall happiness for your employees.

At the end of the day, it’s all on you.

Data is your friend that doesn’t lie. But how you use it to shape your organisational culture depends on how you interpret it, and what you do about it. Your employees need to know that your culture is a top priority. Empower your decisions with people analytics so your employees understand you’re serious about culture and creating lasting change.