Employee data collection is a strategic and beneficial practice for companies because employee data is a valuable resource. It goes beyond personnel information, employment details, salary data, and benefits information. Employee data can also involve insightful performance data and employee survey data and feedback.
Data is a critical asset for organizations because it helps them gain insight, allowing them to improve their decision-making and planning. Therefore, when companies collect data on their employees, they’re not just gathering information to help them organize and identify their workers; they’re collecting data that can help them improve problematic areas that impact the employee’s productivity and work satisfaction. Here are the main benefits of employee data collection.
Reduced legal liabilities
Collecting employee data and maintaining clean and accurate records keeps you compliant, preventing you from potentially facing hefty fines, fees, and penalties. The Fair Labor Standards Act (FLSA) requires all companies to maintain accurate employment records for a minimum of three years. It contains details about demographics, earnings, and work schedules, among other things. Companies risk incurring fines and legal repercussions if these files are inaccurate and do not comply with federal and state standards.
Increased insight into workforce trends
Employee data collection gives you a more accurate picture and holistic view of workforce trends – allowing you to identify patterns. Employee data includes both general and detailed information about each worker within the organization. Certain data, such as performance metrics, can help HR teams make decisions regarding promotions and training programs. General data, such as date of birth or ethnicity, help the HR team in running demographic reports about the workforce as a whole – allowing them to evaluate specific goals, such as promoting a diverse and inclusive workforce. Therefore, access to employee data not only helps HR develop their short and long-term strategies but also helps lead to better retention programs.
Improved employee engagement
The data that you’ve collected can be used to improve engagement, which is a strategy that helps improve productivity and retention. Employees are most engaged when they feel their leaders care about their work-life balance, personal growth, and development. And leadership can turn to data to identify their shortcomings and problematic areas, which may lower employee engagement and retention rates.
However, using employee data to increase employee engagement and retention can go beyond greeting them on their birthdays or including them in the monthly employee newsletter. Employee data that can help improve employee engagement includes performance analytics, which can help identify employees that require coaching or more training. Data analysis and reporting may also reveal employees that are excelling and exceeding expectations and should be evaluated for career development opportunities. Statistical data such as attrition rates and responses to benefits can reveal whether leadership needs to revisit the benefits being offered to employees. Onboarding survey data and exit surveys can also reveal gaps in recruitment and job experience.
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