{"id":91826,"date":"2023-02-01T11:49:00","date_gmt":"2023-02-01T09:49:00","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=91826"},"modified":"2023-02-01T11:50:47","modified_gmt":"2023-02-01T09:50:47","slug":"hr-analytics-finance","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/hr-analytics-finance\/","title":{"rendered":"4 Ways Financial Services Can Use HR Analytics"},"content":{"rendered":"

HR teams within the ever-evolving financial sector have huge responsibilities when it comes to facilitating growth, contending for top talent and supporting <\/span>employee wellbeing<\/span><\/a>.\u00a0 But, more often than not,<\/span> this expectation comes without a substantial budget, the right tools or stakeholder support. <\/b>It\u2019s become commonplace for HR requests to be denied and sidelined.\u00a0<\/span><\/p>\n

But why?\u00a0<\/span><\/p>\n

Jeff Higgins, Senior HR Executive and former CFO, has a few ideas.\u00a0 He believes that \u201cthe simple answer has to do with communications and language. Finance believes <\/span>HR must be able to speak the language of business, which is numbers and, more specifically, business and financial results<\/b>. It is the language that finance professionals think, speak, live and breathe.\u201d\u00a0<\/span><\/p>\n

Essentially, HR and finance professionals are coming up against a language barrier, and one that Google Translate can\u2019t fix. Organisations must find other tactics and tools to bridge this gap.\u00a0<\/span><\/p>\n

As Higgins goes on to explain, HR teams need to translate \u201c<\/span>the language of talent into the language of business <\/b>so that even the most die-hard finance professional can better understand talent, its impact and its worth.\u201d<\/span><\/p>\n

HR analytics can be used for this exact purpose. <\/span>Employee KPIs and metrics are crucial to this cross-departmental exchange<\/b>. Equipping your HR team with this data and a means to harness it will enable them to communicate their needs more effectively, improve their agility and make better business decisions. Ultimately, this combination should <\/span>elevate HR to the position of strategic partner <\/b>within your company.\u00a0\u00a0\u00a0<\/span><\/p>\n

\"HR-Analytics\"<\/p>\n

In this article, we\u2019ll explore 4 key ways HR analytics can provide support within the financial sector.\u00a0<\/span><\/b><\/p>\n

1. Measure Capability of Managers\u00a0<\/b><\/h2>\n

The financial sector can be incredibly hierarchical. The structure of power is often pyramid-shaped which means career pathways and ways to progress are generally plentiful and clear. Essentially, work hard and you\u2019ll move up, gaining managerial responsibilities along the way.\u00a0<\/span><\/p>\n

However, a recent report by <\/span>Culture Shift <\/span><\/a>revealed that <\/span>46% of employees working within the financial sector have witnessed \u2018problematic behaviour, such as bullying, harassment or discrimination\u2019 <\/b>at work, and 35% stated that they were on the receiving end of it.\u00a0<\/span><\/p>\n

Toxic work environments existing within the financial world isn\u2019t exactly groundbreaking news. But the increasing noise around this topic has made it harder for the government and authorities to ignore. Under pressure to act, <\/span>UK regulators introduced the Senior Managers and Certification Regime (SMCR) in 2016.<\/b>\u00a0\u00a0<\/span><\/p>\n

The policy\u2019s aim is simple; increase accountability of those in positions of power and, in turn, discourage misconduct and improve overall culture. As the Financial Conduct Authority (FCA) puts it, the purpose is to ensure senior members of staff set a \u2018<\/span>new standard of personal conduct <\/b>for everyone working in financial services.\u2019\u00a0<\/span><\/p>\n

The regime has been largely hailed as a success. However, considering the FCA issued <\/span>\u00a3215,834,156<\/span><\/a> in fines in 2022 alone, breaches are still far too common. Whilst regulators can introduce behavioural policies, it\u2019s then<\/span> down to individual companies – specifically HR teams – to uphold and monitor them.\u00a0\u00a0<\/b><\/p>\n

Performance metrics hosted on HR software can make this job a bit easier. Using automated surveys and <\/span>performance reviews<\/span><\/a>, <\/span>HR teams can gain insight into how team members feel about their managers.<\/b> Anonymous, customisable 360\u00b0 evaluations mean any areas of concern can be addressed and investigated, and that HR have greater visibility over potential abuses of power.\u00a0<\/span><\/p>\n

Being able to tailor questions also means <\/span>companies can monitor managers\u2019 \u2018soft skills\u2019,<\/b> which are notoriously difficult to measure. The quantitative metrics are there, too, and can be measured and tracked over time. For example, retention rate per manager could be a strong indicator of potential breaches of the SMCR.\u00a0\u00a0<\/span><\/p>\n

By centralising performance evaluations on a single platform and monitoring employee responses in real-time, HR teams gain organisational agility and the power to leverage data to <\/span>support <\/b>employee wellbeing<\/b><\/a> and foster a healthy workplace.<\/b>\u00a0<\/span><\/p>\n

Ensuring managers are conducting themselves appropriately isn\u2019t entirely altruistic, either. Their behaviour can also have a direct impact on the success of a business. According to <\/span>FinTech times<\/span><\/a>, <\/span>57% of employees in the finance sector would be hesitant to accept a job offer from a company known for having a toxic workplace culture.<\/b>\u00a0<\/span><\/p>\n

Clearly, ensuring your workforce are abiding by the SMCR is not just about the reputation of individuals but the reputation of the company they represent. Manager behaviour is key to attracting and retaining top talent, and might even give you a leg up against competitors competing for those same candidates.\u00a0<\/span><\/p>\n

\"HR-Analytics\"
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2. Support Recruitment as Industry Grows\u00a0<\/b><\/h2>\n

In December 2022, Chancellor of the Exchequer Jeremy Hunt announced he is rolling out a collection of reforms within the financial sector. His <\/span>statement<\/span><\/a> explained: \u201cThese reforms will create jobs, support businesses, and power growth across all four nations of the UK.\u201d He also reiterated the sector\u2019s vast scale in the UK, stating that \u201cfinancial and related professional services employ over 2.3 million people.\u201d<\/span><\/p>\n

With Hunt\u2019s reforms promising to accelerate the growth of an already huge workforce, HR teams have a recruitment challenge on their hands – and a significant responsibility on their shoulders. Yet, this also <\/span>presents an opportunity for HR to shed their outdated perception as the cost centre of a company.\u00a0<\/b><\/p>\n

HR teams should use this window of opportunity to step forward, attract top talent and <\/span>quantify how their recruitment efforts contribute towards revenue<\/b>. Or, as Higgins would say, \u201cspeak the language of business, which is numbers and, more specifically, business and financial results.\u201d\u00a0 This is a step towards your HR team becoming a strategic partner in your business and proving the important part you play in generating profit.\u00a0<\/span><\/p>\n

Using an all-in-one HR software with both talent acquisition and HR analytics tools can facilitate this. These intuitive, cloud-based platforms can use your real-time recruitment and employee data to create reports. These allow you to <\/span>quickly identify areas for improvement and areas of success that should be maximised.\u00a0<\/b><\/p>\n

Some commons recruiting metrics HR software can measure and track include:<\/span><\/p>\n