CIPD | Technology and data use in HR functions (2024)

In this article, we outline the findings from the CIPD's survey of 1,174 UK-based HR bosses to shed light on HR’s operating model from a technology and data perspective. Respondents were from organisations with 50 or more employees worldwide – the size we’d expect technology like HR information systems (HRIS) to become crucial for keeping track of employee records.

What functions are within the HR remit?

Recruitment (84.2%) and HR systems (81.9%) were most often cited as matters that are within an HR department’s remit (Figure 1). Other commonly selected choices include inclusion and diversity, reward and recognition, employee engagement, performance management, learning and development and onboarding activities.

Figure 1: Activities the HR department oversees in your organisation

CIPD | Technology and data use in HR functions (1)

While work scheduling wasn’t so high on the list, our data suggests the activity is more commonly overseen by HR in the manufacturing sector (57.7% vs 34.1% overall). Other less popular areas cited as within HR’s remit included internal communications and events, global mobility and employee relations.

When looking at the figures, it is worth bearing in mind that some of the activities may have seen lower numbers because they are being managed by other departments (for example, finance overseeing payroll) or delegated to people managers. It’s also possible that some respondents might not have been aware of all activities their HR departments oversee.

What types of HR software are used for HR tasks?

Here, HR software means any software or platform an organisation uses for HR tasks. This may include programs installed on a work computer or accessed through a web browser.

Figure 2 shows the percentage of HR bosses who said their organisations used certain types of HR software or platforms. Few said they didn’t know whether their organisation had a particular type of HR software – 6% or less for all except reward and recognition (9.5%), people analytics (11.8%) and workforce planning software (12.8%).

Figure 2: HR software or platforms used in your organisation

CIPD | Technology and data use in HR functions (2)

As expected, most said their organisations have HRIS (84.5%) and payroll software (82.9%). The majority of those who said their organisation didn’t have these came from organisations with 550 or fewer employees worldwide (78.7% and 70% respectively).

In contrast, fewer HR bosses said their organisation used reward and recognition software or platforms (38.8%). These might be used to do compensation plan modelling or facilitate peer-to-peer recognition schemes for example.

Similarly, a smaller proportion said their organisations used HR software or platforms for workforce planning (37.1%). Workforce planning is difficult to do well at scale without a software or platform that enables easy access to good quality data. Indeed,separate researchfrom the CIPD found 46% of people professionals saying their organisation did not collect any data in key areas such as:

  • skill gaps within the organisation and sector
  • future skills requirements, and
  • the availability of talent in the market.

Although recruitment (84.2%) was the activity most cited as overseen by HR (Figure 1), not as many HR bosses (67%) said their organisations used recruitment software (Figure 2).

What workforce metrics are reported to management?

Employee headcount change (net 75.1%), employee turnover or retention (net 74.4%), and absenteeism rates (net 73.3%) were the three metrics that most HR bosses said were reported to management, at least monthly or annually.

In contrast, relatively few said quality or cost of hire, employee commitment, and career path ratio were reported to management (Figure 3). Perhaps this is because these metrics are more difficult to quantify. However, if meaningful definitions can be agreed and the data is relatively easy to collect, then these could also be reported. A good HRIS can support this. For example, the career path ratio is the number of job promotions compared to the number of all movements (lateral and promotions) an employee has had. If all employee role changes are recorded on an HRIS, the career path ratio could be easily calculated and used to track employee career growth in the organisation. This metric could then be used to inform activities to support employee retention and engagement.

Figure 3: Workforce metrics reported to management

CIPD | Technology and data use in HR functions (3)

The percentage of HR bosses who didn’t know whether certain workforce metrics were reported to management was significant, between 10% and 21%. This is even after we’ve excluded from our analysis those who had no knowledge of what workforce metrics were reported to management at all.

Looking at Figure 4, the findings suggest that workforce metrics were more likely reported to management if the organisation had people analytics software. Reporting was more frequent in organisations with this software than in those without (or without awareness of) the software (compare dark purple bars in Figure 4).

Figure 4: Workforce metrics reported to management - those from organisations who have vs don't have/don't know if they have people analytics software

CIPD | Technology and data use in HR functions (4)

Having people analytics software can therefore streamline reporting efforts and increase the types of metrics that can be regularly reported to inform management decisions. Modern HRIS typically have a self-service people analytics feature that allows control over who can view relevant key performance indicators (KPIs) and query subsets of the workforce data themselves.

What’s the HR to employee ratio in organisations?

Only 664 of the 1,174 responses we analysed included valid estimates of the number of HR professionals and employees in their organisations worldwide. This is mainly because not everyone knew how many HR professionals their organisations employed.

Of the 664 responses, the median respondent quoted a global HR to employee ratio of 1:60. For the middle 90% of respondents, the global HR to employee ratio ranged between 1:17 and 1:255. Although Table 1 shows a wide spread of ratios, we can see that ratios of 1 HR professional to more than 255 employees are uncommon.

Table 1: Global HR to employee ratio

CIPD | Technology and data use in HR functions (2024)

FAQs

How is data used in HR? ›

HR data is an essential element of HR and people analytics. It helps you make informed decisions about recruitment, compensation, succession planning, and more. You can also use it to understand workforce trends like voluntary turnover or engagement.

What is the role of HR in CIPD? ›

Typical activities for an HR generalist

Creating employee engagement initiatives. Creating people policies and procedures. Setting up learning and development programmes to meet the needs of the organisation. Designing organisational structures with business leaders.

Why should you use data and leverage on HR metrics for the HR function? ›

Importance of HR Analytics in Modern Businesses

By leveraging data, businesses can gain deeper insights into employee behavior, performance drivers, and organizational trends, allowing them to align their HR strategies with broader business objectives.

What is the HR ratio for CIPD? ›

Of the 664 responses, the median respondent quoted a global HR to employee ratio of 1:60. For the middle 90% of respondents, the global HR to employee ratio ranged between 1:17 and 1:255. Although Table 1 shows a wide spread of ratios, we can see that ratios of 1 HR professional to more than 255 employees are uncommon.

How to use data to make decisions in HR? ›

By harnessing data-driven insights, HR professionals can make enhanced decisions across a range of areas, including:
  1. Recruitment and Selection: ...
  2. Talent Management: ...
  3. Employee Engagement and Retention: ...
  4. Employee Experience: ...
  5. Performance Management: ...
  6. Strategic Alignment: ...
  7. Workforce Planning:
Mar 18, 2024

What is an example of HR data analysis? ›

What are some examples of HR analytics? Some of the key HR metrics for most small businesses include revenue per employee, time to fill, voluntary and involuntary turnover rates, offer acceptance rate, retention rate and absence rate.

Which is better, shrm or CIPD? ›

CIPD accreditation increases your career development

Although SHRM is highly regarded in the US, it is not as highly-regarded as CIPD in the UK. This means that those with CIPD accreditation have a competitive edge over those with a SHRM qualification in the UK and are more likely to advance their careers.

How does CIPD work? ›

The three levels of CIPD membership are Associate Member, Chartered Member and Chartered Fellow. Joining the CIPD while pursuing qualifications means starting as a Student Member and automatically upgrading to Associate Membership once you've earned a Certificate or Diploma.

What is CIPD level 3? ›

The CIPD Level 3 Foundation Certificate in People Practice provides a solid grounding in HR and L&D for those with little or no HR experience. It's roughly equivalent in difficulty to an A-level.

What kind of data do HR metrics most often use? ›

What are the most common metrics used by HR? The most common metrics used by HR include headcount, turnover, diversity, compensation, the total cost of workforce spans and layers, employee engagement, talent acquisition, learning, workforce planning, productivity, and manager effectiveness.

Why does data need to be accurate in HR? ›

Unfortunately, many companies only become aware of HR data quality issues when business and HR users are already confronted with accumulated errors. Such oversights can significantly impair leaders' ability to make strategic decisions for their organizations, ultimately impacting the bottom line.

What are the 5 key performance indicators in HR? ›

Time to Fill Vacant Positions. Employee Engagement. Training Effectiveness. HR Budget Allocation.

Do HR need CIPD? ›

Do you need a CIPD qualification to work in HR? While there's no legal requirement for you to have a CIPD qualification to have a HR role, most employers don't consider candidates who aren't CIPD accredited.

What is CIPD equivalent to? ›

The Level 7 Certificate or Diploma is the most advanced human resources qualification that you can take with the CIPD. It's equivalent to postgraduate study – typically the same level as a masters degree.

What is the good work index for the CIPD? ›

The CIPD Good Work Index measures a wide range of aspects of job quality, including employment essentials, such as pay and contracts, the day-to-day realities of work as experienced by workers themselves, and the impacts on people's health and wellbeing.

How is big data used in HR? ›

With big data, HR representatives can get a more accurate picture of who is leaving, how often employees are departing and if there are any patterns among those seeking employment elsewhere. At the same time, the data can be analyzed to identify patterns among people who choose to stay with the company.

How can data add value to HR? ›

5 Applications of HR Data Analytics to Boost Performance
  1. Measuring Performance. ...
  2. Informing Promotion and Salary Decisions. ...
  3. Understanding Attrition and Increasing Retention. ...
  4. Examining Employee Engagement. ...
  5. Measuring Employee Development and Learning Outcomes.
Mar 28, 2024

Why is data important in a human resource environment? ›

Enhanced decision-making: HR data management equips HR professionals with the tools and insights to make informed decisions. By analyzing comprehensive data sets, from turnover rates to employee satisfaction surveys, managers can identify trends and patterns that inform strategic business decisions.

Why does HR need to be data-driven? ›

A data-driven HR strategy is the first step towards using predictive analytics—a technique that uses historical data and analysis tools to make predictions about future outcomes. This is an essential tool if you want to make informed decisions about the future without having to guess what might happen.

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