Unraveling HR Reporting: Insights and Implications

Discover the 8 essential HR reports, their objectives, and the crucial role of data in driving strategic decisions and influencing business performance.

HR reporting is a crucial part of human resources. It helps organize and share important HR data. Think of it like the final cut of a movie, where all the hard work comes together. HR reporting can be used internally to share information within the HR department or externally to provide insights to the organization's leadership.

A basic HR report might be a simple list of numbers with some explanations. But with advanced HR reporting software, you have more options. You can use pie charts, line graphs, and bar graphs to present the data in a way anyone can understand, even if they're unfamiliar with HR. This means you can be something other than a design expert to create clear and easy-to-understand presentations.

I. Utilizing HR Reports

The reasons for analyzing HR metrics are as diverse as the reports generated to present the results. HR reporting finds application across all facets of HR practice. Some of the primary purposes include:

• HR Monitoring: Tracking HR tasks and functions for internal record-keeping and team performance management.
• Strategic and Inventory Tracking: Observing the status of the company's equipment, HR-related functions' performance, and the progress of HR initiatives.
• Executive Communication: Conveying pertinent information to leadership regarding performance and strategic initiatives.
• Disciplinary Action and Problem Monitoring: Managing problem areas and problematic employees or teams to ensure complete and scrutinized results.
• Forecasting and Budgeting: Leveraging past performance to predict future needs related to finances, workforce planning, events, and organizational growth.

II. Essential HR Administration Reports

Given that an HRIS can generate a report for virtually any tracked metric, it's no surprise that there are many HR reports. Nonetheless, some pieces hold more relevance to HR practice and organizational interests. From an administrative standpoint, the HR reports that have the most value are:

1. Employee Performance Report

Employee Performance Reports are crucial for HR management, aiding in performance appraisals and skill development. Grove HR enhances this process with features for comprehensive evaluations, including Self, Manager, and Peer Reviews, Ratingless, Rating Reviews, and Automated Review Schedules. The platform also offers customizable review templates and contextual reviews, ensuring a detailed, accurate assessment of employee performance. 

2. Company Performance Report

Company Performance Reports offer an overview of the organization's overall performance regarding its human resources. These reports consider overall productivity, employee retention rates, average employee satisfaction scores, and more. They are crucial for strategic planning and decision-making at the executive level.

3. Turnover Report

Turnover Reports analyze the rate employees leave the company voluntarily or involuntarily. They can provide insights into why employees leave, how long they stay, and whether specific departments or roles have higher turnover rates. This information is invaluable for improving retention strategies and maintaining a stable workforce.

4. Applicant Source Report

Applicant Source Reports track where job applicants come from, whether job boards, social media, referrals, or other sources. These reports help HR professionals identify the most effective recruitment channels and where to focus their efforts. A report from Webinarcare showed that in 2022, referrals were the top source of hires, making up 30% of all hires.

5. ACA Report

The Affordable Care Act (ACA) Report is specific to businesses in the United States. It tracks compliance with the ACA, requiring employers to offer full-time employees health insurance. The report ensures businesses meet legal requirements and avoid penalties.

6. Survey/Program Participation Report

These reports monitor employee participation in surveys and programs implemented by the company. They can reveal levels of employee engagement and the effectiveness of different initiatives. For example, if participation in a training program is low, it may indicate a lack of interest or awareness, prompting HR to adjust its approach.

7. Hiring Reports

Hiring Reports provide insights into the recruitment process, showing how many positions are filled, how long it takes to fill them, and the cost per hire. These reports are essential for evaluating the efficiency of recruitment strategies and making necessary adjustments. As of 2022, the average time to fill a job vacancy was 36 days.

8. Employee data report

Employee Data Report Employee Data Reports are essential for HR administration, as they provide all the relevant information about the company's workforce. These reports include employee demographics, contact details, job titles, salaries, benefits, and more. They can help HR professionals manage employee records, update payroll, monitor compliance, and plan for future staffing needs.

III. Executive Expectations from HR Reports

The role of HR reporting extends beyond simply monitoring and managing internal HR processes. It is significant in informing executive decision-making, shaping organizational strategies, and driving business performance. Therefore, understanding what executives expect from HR reporting is crucial for HR professionals. Here's a deeper look at these expectations:

Business-Critical Reporting

Executives value reports that are business-critical, focusing on the most relevant and impactful information affecting the entire organization. They prefer data that can guide strategic decisions and directly impact the bottom line. Therefore, HR reports need to track or predict the success of HR functions and initiatives that translate into money earned and spent.

For instance, a report on the effectiveness of a new employee wellness program could highlight reduced sick leave, increased productivity, and improved employee retention. These outcomes directly affect operational costs and the company's bottom line, making the report highly valuable to executives.

Data-Forward Approach

Executives often prefer facts over opinions, making a data-forward approach essential in HR reporting. This means that HR reports should lead with the numbers before delving into explanations or advice. Presenting the data first provides a solid foundation for any subsequent interpretation or recommendation, keeping the report grounded in objective information.

For example, a report on employee engagement might start with critical metrics, such as employee satisfaction scores, participation rates in engagement activities, or turnover rates. Only after presenting this data should the report delve into an analysis of what these numbers mean for the organization.

Alignment with Existing KPIs

HR reports should align with the key performance indicators (KPIs) already tracked by the organization. This means following the same reporting schedule (e.g., quarterly), using the same units of measurement, and adopting the same visual formatting used elsewhere in the organization.

This alignment ensures consistency across different business areas, making it easier for executives to compare and contrast data. It also helps to integrate HR reporting into the broader business reporting framework, reinforcing the strategic role of HR in the organization.

Easily Digestible Information

Lastly, HR reports should be easily digestible. While HR professionals find specific terms or concepts straightforward, they may need to be clearer to others in the organization. Therefore, HR reports should introduce new terms, information, or analytics in an easy-to-understand manner.

This might involve using the long form of HR-specific acronyms or explaining how a particular analytical result was obtained. The aim is to ensure that the report is accessible to all readers, regardless of their familiarity with HR terminology or concepts.