HR Analytics and Reporting

To make tactical human resource (HR) decisions that positively shape your company, make Big Data your friend. Workforce analytics — which apply statistical models to worker-related information — give companies of all types the ability to derive insight from selected HR parameters. Big-picture planning can arise from qualitative and quantitative study of factors such as hours worked, employee status (full-time vs. part-time), employee engagement, level of performance, absenteeism, overtime, rate of turnover, and efficacy of new-hire orientation.

To get a feel for the extent to which U.S. businesses use workforce analytics, we conducted a nationwide survey in September 2016. It polled 596 HR leaders in a wide range of industries; from firms with just a few employees to very large companies with workforces exceeding 1,000. Respondents were HR managers, HR supervisors, HR directors, vice presidents of HR, or chief HR officers. The results they provided are provocative.

Bigger companies more likely to use analytics

Not surprisingly, the bigger the company, the more likely its leaders are to use HR analytics. Overall, the survey found that 72 percent of respondents use analytics to drive business decisions vs. 28 percent that said they do not. But in companies with fewer than 500 employees, 66 percent use them and 33 percent don't. For companies with 500+ employees, 79 percent rely on analytics and 21 percent do not.

The survey found that the primary reasons HR leaders crunch their data are to learn about:

• Employee status (full-time vs. part-time);
• Hours worked;
• Top talent;
• Low performers; and
• Employee engagement.

Of those who use company HR statistics, 66 percent say they use them to make more informed business decisions, 23 percent to justify HR decisions to top executives, and 10 percent to help them communicate more effectively with employees.

Data source, type vary

Companies that were surveyed obtain their HR data in a number of ways. Half report using a software platform that generates statistics. Twenty-eight percent say they manually create their data through Microsoft Excel or another program. A few respondents — 14 percent — said their company has a proprietary system that yields HR analytics. And eight percent indicated they have a vendor dedicated to providing data analysis.

But not all data are comparable. Some figures are descriptive, presenting raw numbers in summarized form. Prescriptive data provide intelligent recommendations for actions. Predictive data forecast what may happen in the future. Interestingly, survey respondents ranked descriptive data as the most important to meeting business goals. Thirty-nine percent put top value on prescriptive data, while just 15 percent considered predictive data most valuable.

Benefits of data analytics in HR

All survey respondents said they found value in analyzing HR statistics: knowledge without bias. Here's a sample of responses to the question, "What do you see as the biggest benefit of using data analytics in your role?":

• "It helps me make informed decisions in an ever-changing marketplace"
• "It makes analyzing employee trends less difficult"
• "Provides an overview of the bigger picture that's sometimes difficult to see"
• "It allows me to foresee labor needs based on factual trends"
• "Reliable information to determine actionable strategies"
• "It helps me to pinpoint problem areas and address them before they get out of hand"
• "Prove to the executives that our decisions are founded by data"
• "Understanding the direction we are moving in and seeing where we can improve"

Hard facts help HR leaders zero in on specifics. At the same time, they gain a big-picture view from which to base long-term workforce strategies.

If your company doesn't yet use HR analytics, the survey results show that it's worth considering. Analytics can guide strategic personnel decisions, give your firm an edge over the competition, and solve staffing dilemmas. In short, analytics can elevate HR's contribution to the success of the business.

HR data analytics can provide human resources departments with better data collection, reporting, and the information needed to make data-driven business decisions. Whether a business unit manager needs the latest information on time and attendance to streamline their scheduling process, or a quick payroll audit by the HR manager to address a problem, analytics help make data accessible to business leaders. Here's a closer look at how some businesses are using HR analytics to help improve the way they run their businesses.

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Recruiting Analytics

Hiring the best people for open positions is critical. When the candidate isn’t right for the position, turnover can happen, and filling open positions can become expensive and time consuming. With recruiting analytics, it's easy to see where your best candidates are coming from and which profiles tend to succeed more often over the long term. In addition, analytics may provide a helpful framework for understanding how your recruiting process is working and where there might be room for improvement. For example, if analytics show delays in candidate communication or long review times at the hiring manager level, this can provide actionable insights for making process improvements.

Time and Attendance Analytics

Whether your team works remotely from client sites, or you need to closely manage time and attendance to comply with overtime requirements, it's important to have the right tools to easily analyze work schedules. With time and attendance analytics, companies can determine patterns in their scheduling, strategically manage the scheduling process to stay in compliance with company and regulatory processes, and even identify patterns of absenteeism that could signal trouble at the individual or department level.

Benefits and Other Services

HR data analytics can also streamline the management of benefits and other services within human resources. Consider the reporting that is needed during open enrollment. With an analytics-driven reporting system, it is easy to see who is enrolled and where decisions are pending. Analytics can also help HR managers understand which benefits are being utilized and are seen as valuable by the workforce, and which ones are underleveraged. HR analytics related to benefits can also help companies gather the information needed for compliance reporting with ease.

Connecting Analytics to Business Decisions

Increasingly, companies are relying on data to make decisions about how they operate their business. For example, HR analytics can help identify areas of exposure to risk and help companies pinpoint areas of improvement, from recruiting to benefits administration. At a higher level, investing in the right technology may make it easier to take a deeper dive into the company's data and tie it back to critical decisions that managers make about staffing, compensation and benefits, scheduling, and more. In addition, stronger analytics can help HR more accurately determine what aspects of their processes are working well and where improvements could be made.

Ultimately, as today's business landscape becomes data-driven, it's important that HR adapts. HR analytics help ensure that your HR department will have the necessary workforce information on hand to be a trusted partner to business leadership, as well as to help answer any data-driven reporting needs that arise as part of larger discussions.

Establishing a small business internship program can offer many potential benefits. Often college students or recent graduates can bring fresh perspectives, while training interns offers a unique management opportunity for current employees. But bringing on an intern for your business, like any other process, requires careful consideration. Let's take a look at not only how to find interns and potentially add to your future talent pool, but also identify potential internship requirements and best practices to be mindful of before starting such a program.

Determine Timeline, Budget, and Team Needs

A business may initially consider bringing on interns for a specific upcoming project or initiative. In such cases, it's a good idea to outline the project's scope and requirements, identify necessary tasks, and which skills are required. For example, a summer-long technical project may warrant bringing on interns who are computer-savvy and demonstrate strong attention to detail.

Another consideration is your budget, if any, for bringing on interns. Some internships should be paid while others may be unpaid, such as students receiving college credit in lieu of monetary compensation. There are many state and/or federal wage and hour rules to consider if you decide to bring interns into your organization. At the federal level, there are multiple factors that determine whether interns in the for-profit sector may be paid or unpaid by focusing on the primary beneficiary of the relationship. These factors include:

• Whether the internship provides training similar to what the intern would receive in an educational institution;
• Whether the internship accommodates the intern's academic commitment(s) and calendar; and
• The understanding of all parties concerning compensation, among other criteria.

When this analysis indicates that an intern would also be an employee, the intern is entitled to minimum wage and overtime pay under the Fair Labor Standards Act (FLSA). Additional state and local laws could provide additional clarification on internships.

In instances where interns are paid, these wages should be factored into your budget for an internship program. This will also require your interns to complete any necessary new-hire paperwork, such as Form I-9, Form W-4, and any other employment forms required before they begin work.

You may want to consult with an HR professional or legal counsel to ensure your internship programs and supporting agreements comply with federal, state, and local wage and hour laws.

Connect with Local Colleges

Once you've outlined business needs for bringing on additional help, where can you find interns? Colleges and educational institutions are great places to connect with students who are ready to get some hands-on work experience. Cultivate relationships with local colleges and universities by reaching out to the institutions' career development centers, advertising internship openings on their job boards, and attending job fairs.

Communicate Your Internship Opportunity to Students

Similar to recruiting an employee, reaching out to a potential intern requires communicating about opportunities via thorough descriptions. This is where you can outline responsibilities, the type of work they will take on, timeframes (e.g., May-September during a school's summer break), whether the internship is paid, and other pertinent information. Much like crafting a job description for an employee, make sure you can answer questions such as:

• What are the goals of the internship and what specific duties and functions will the intern take on to achieve them?
• Is there any previous skill set or current program of study the person needs to succeed in the role and add value?
• Where will the person work, and during what hours?
• Which team will the intern support?
• What tools, software, or technology resources will the intern be provided with to achieve the goals of the internship?
• Is there the opportunity to bring an intern on as an employee following the completion of their internship?

The more detailed your description, the better you can communicate your needs and find the right intern. Otherwise, unclear expectations can lead to interns bouncing back and forth between teams, sitting idly with nothing to do, and developing a less-than-favorable impression of your business.

Once you have a solid description for an internship opening, post the listing with local colleges, as well as on websites that post about internship opportunities, career pages, and social networks. Encourage current employees to also reach out to their alma maters to help spread the word.

Start the Intern Selection Process

A thorough vetting process, much like hiring a full-time employee, is crucial to selecting an intern. The intern selection process may involve initial phone screenings to weed out unqualified applicants, in-person interviews to assess their capabilities, and even a meet-and-greet with the team to get a sense of future dynamics. Anyone involved in the interviewing and selection process should be mindful of the fact that this person likely has limited (or zero) job experience, so questions should reflect this. They may include:

• What do you hope to learn as an intern?
• What made you interested in your current field of study?
• What are your future career aspirations?
• Can you talk about a recent school project you worked on?

Anyone involved in the interview process should also be mindful of questions to avoid, including anything related to an individual's race, ethnicity, religion, or gender; citizenship status or place of birth; any physical or mental disability; or whether the candidate is pregnant.

Make an Offer

Just as you would extend an offer letter to a potential employee, make an offer in writing to an intern, whether it's paid or unpaid. Details to consider including in the offer letter:

• The name and location of the business
• The internship's start and end dates
• The amount of compensation you are offering if it's a paid internship (or alternatively clearly stating that the position is unpaid)
• The intern supervisor's name
• The deadline for accepting the internship

Internship FAQs

Do Interns Get Paid?

Many internships offer some form of compensation, but unpaid internships may exist in situations where the intern is the "primary beneficiary" of the agreement, per the DOL's primary beneficiary test. State and local laws should also be taken into consideration when determining whether an internship is paid or unpaid.

Do Interns Get Benefits?

While interns are generally not eligible for most company benefits, those who qualify as employees under the FLSA are typically eligible to participate in company benefit plans. As of May 2017, organizations with 50 or more employees are required to offer health benefits to any individual working 30 or more hours per week once they have satisfied a waiting period. The law doesn't specifically outline guidance in regard to interns, but if they work 30 or more hours per week and have satisfied the waiting period, interns must be offered coverage. Make sure to review your company policies prior to bringing on any interns.

What's the Difference Between Intern vs. Employee?

As stated above, there are federal and state guidelines that help organizations classify an intern vs. employee. But at the basis of an internship policy, an internship's purpose is to provide a student or recent graduate with training for a specific period of time similar to what would be given to them in an educational setting. The experience is for the benefit of the intern. On the other hand, an employee is hired to perform specific tasks for the benefit of their employer in exchange for compensation and benefits.

Do Internships Always Lead to Jobs?

Not necessarily. Internships are a great way for students to build connections within a company, demonstrate their abilities, and generally get their foot in the door. But there is no guarantee that an intern will receive a job offer.

Can a Company Revoke an Internship Offer?

An employer has the right to rescind an internship offer for almost any reason, unless it's based on discriminatory factors such as gender, race, etc. If the individual fails a background check or drug test, this could also lead to a revoked internship offer as part of the company hiring policy.

Can an Intern Get Fired?

It's possible for internships to end prematurely, but how businesses choose to handle subpar intern performance can vary. Some businesses will simply wait out the duration of the internship and wish the student well at the end of it. Others may choose to dismiss an intern before their last day. That said, internships are learning experiences, and it's important to provide opportunities for interns to learn from their mistakes. However, actions such as continually showing up late (or not at all), stealing or committing illegal acts, or exhibiting inappropriate behavior may all be grounds for immediate dismissal.

How Long is an Internship?

Internships last for a specific period of time, typically anywhere between a few months to half a year. An internship that lasts for a short duration, such as during a summer break, can be beneficial if there's a project that will have a definite end date. At the same time, a longer internship offers more time for training and additional opportunities to further develop an intern's skills.

Get the Most from Your Internship Program

An effective internship program can help students and recent graduates see what it's like to work at your company, explore different departments, and gain valuable work experience. And with today's competitive hiring landscape, interns can offer a helping hand to over-capacity departments, and be a great strategy for building a solid candidate pool for future job openings.