Employee Analytics can bring a better employee experience

Only 20% of employees globally are truly engaged at work, according to Gallup, underscoring the critical need for analytics, to understand and improve employee engagement. The cost of replacing a salaried employee can range from 16% to 20% of their annual salary, making it essential to use analytics to identify flight risks and implement effective retention strategies.
Employee Analytics can bring a better employee experience

The landscape of work is undergoing a global transformation. From bustling financial hubs in New York to burgeoning tech centres in Bangalore, companies are recognising the importance of a happy and engaged workforce. This shift coincides with the rise of employee analytics, a multi-billion-dollar market projected to reach $18.9 billion by 2027. In India specifically, a 2022 Deloitte report highlights a growing interest in HR analytics, with over 75% of organizations taking steps towards implementation. A study by IBM highlights that 90% of HR leaders view people analytics as critical to their organisation’s success, indicating a growing recognition of the value employee analytics provides. This trend is driven by a desire to not only comply with evolving labour laws but also to unlock the immense potential for improvement in areas like employee well-being, engagement, and talent management.


Employee analytics, also referred to as workforce analytics or HR analytics, encompasses the systematic collection, analysis, and interpretation of employee-related data to drive organizational improvement. This practice employs statistical methodologies and advanced software tools to gain insights into various facets of employee behaviour, performance, and engagement. The primary objectives of employee analytics are to enhance decision-making processes, optimise human resource management, and bolster overall business performance.


Here is why employee analytics is important: Only 20% of employees globally are truly engaged at work, according to Gallup, underscoring the critical need for analytics, to understand and improve employee engagement. The cost of replacing a salaried employee can range from 16% to 20% of their annual salary, making it essential to use analytics to identify flight risks and implement effective retention strategies. High-performing companies invest an average of $9,000 more per employee on training and development compared to their lower-performing counterparts, highlighting the importance of analyzing training effectiveness to ensure targeted investment. Furthermore, disengaged employees cost U.S. companies an estimated $370 billion in lost productivity annually, emphasizing the value of using analytics to identify and mitigate factors that negatively impact productivity.


Consider a leading e-commerce company in India. Facing high employee turnover and stagnant customer satisfaction scores, they implemented a comprehensive employee analytics program. The data revealed a disconnect between the training provided, and the actual skills required for success. Additionally, the workload distribution across departments was uneven, leading to burnout among some employees and underperformance in others.



By analysing this data, the company was able to personalize development plans for each employee, bridging skill gaps and fostering a sense of growth. They also optimized workload distribution, creating a more balanced work environment. The results were significant. Employee turnover rates dropped, customer satisfaction scores climbed, and the company experienced a surge in overall productivity. This case study exemplifies the transformative power of employee analytics when used responsibly.


Another use case relates to a leading Indian fintech platform that leverages employee analytics to elevate customer service. Traditionally, it relied on generic metrics like call duration and satisfaction surveys. Seeking a deeper understanding, the company partnered with an HR analytics firm to analyze agent performance data, including call recordings, feedback, and resolution rates.


The data revealed a key insight: agents with strong communication, problem-solving skills, and financial product knowledge consistently excelled. The company used this to develop targeted training modules, focusing on communication and product knowledge for technical agents. This data-driven approach equipped agents with the right tools, leading to:

  • Reduced call handling time
  • Increased customer satisfaction
  • More engaged and empowered workforce

This case exemplifies the power of employee analytics. By tailoring training and optimizing performance, this platform has secured a competitive edge in India’s dynamic fintech landscape.


However, employee data collection alone isn’t enough to transform the employee experience. To unlock its true potential, organizations need to strategically leverage this data. Here’s where employee analytics emerges as a powerful tool:. Employee analytics offers a wider range of benefits than just personalized development and work environment optimization. It significantly impacts decision-making within HR. Traditionally, HR relied on intuition or anecdotal evidence. Employee analytics injects data-driven insights, enabling informed choices across everything from recruitment strategies to performance management. This translates to more effective talent acquisition, higher retention rates, and a more engaged workforce.


Targeted learning and development are another key benefits. Employee analytics can pinpoint skill gaps within the organization. This allows for the creation of targeted training programs that address specific needs and ensure employees have the right skills to excel. This targeted approach not only improves employee skill sets, but also demonstrates the organization’s commitment to employee growth. In today’s competitive job market, attracting top talent is crucial. By analyzing data on past hires and successful employees, organizations can identify key skills and attributes associated with high-performance. This data can then be used to refine recruitment strategies, attract a more qualified pool of candidates, and ultimately hire the best people for the job.


The benefits of employee analytics extend across various industries. For instance, in the financial sector, compliance and risk management are paramount. Employee analytics can help identify patterns associated with fraudulent behavior and ensure regulatory adherence. Hospitals can leverage employee analytics to optimise staffing based on patient volume and critical care needs, ultimately leading to better patient care. Additionally, it can help identify high-performing healthcare professionals and inform targeted retention strategies. In manufacturing, predictive maintenance becomes a reality by combining employee analytics with sensor data. This allows for proactive maintenance of equipment, minimizing downtime and production disruptions.


While employee analytics offers a wealth of benefits, it’s crucial to remember that it should be implemented responsibly and ethically. Transparency and clear communication about how employee data is collected, used, and protected are essential for fostering trust and acceptance among employees.  Furthermore, the focus should be on development and growth, not just monitoring and scrutinizing employee performance. By harnessing the power of employee analytics responsibly and strategically, organizations can create a work environment that fosters employee engagement, growth, and overall satisfaction. This translates to a more productive and successful organization, where employees feel valued and empowered to thrive.

Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.    

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