How SMEs Can Use Workforce Data Without Overcomplicating HR

For Small and Medium Enterprises (SMEs) in particular, workforce data can be feared with its perceived heavy workload to collect, and an unmanageable and unreadable amount of data produced. It can seem that only larger companies can make use of it fully.

But, with the increasing amount of technology, it has actually become easier to utilise the data. Boiling down the information to key indicators and pairing with HR software like PeopleHR Evo can help any business, including many SMEs, gain a vital edge in how their business is run.

Why Data Can Feel Overwhelming

Data sets can be huge, even with only a few members of staff. Tracking absences and time sheets alone can provide a company with lots of records that can be tough to navigate. Plus, with the legal requirement that all UK businesses keep payroll information for at least 3 years, the amount of data a company has can quickly add up, and it can be tough to keep track of what’s vital for the company to run.

As well as this, it can seem that many HR software providers are geared towards larger businesses, offering many services across lots of departments, and so it can be tough for SMEs, in particular, to understand which are vital and which might not need focusing on at that time.

However, workforce data is vital to a business's success; it can help prevent issues and create a solid foundation for growth, and so it’s important for companies to understand how to use it and what to look for.

Workflow and Resource Allocation

One of the key factors in a business's survival is the allocation of its resources. Misallocation can lead to a leak in profits and damage productivity. It can also delay company growth as unclear capacity leads to uncertainty. 

For SMEs in particular, it can become unsustainable as the margin for loss and the amount of usable resources is smaller, making this data invaluable.

Tracking workflow and how it’s assigned can help identify gaps in the process. It can highlight teams or team members that have the capacity for more work, or it can help address delays or problems before they impact productivity.

It also ensures that resources can be allocated more quickly and moved more easily when needed. This speed can limit the risk of production drops and missed deadlines. Helping SMEs stay competitive and capable.

Turnover monitoring and Retention

Another important factor in a business's success is keeping its employees. High turnover can lead to a negative workplace culture, a higher workload and a consistent loss of expertise and talent, as well as the financial cost, which a joint report from Oxford Economics & Unum found to cost an average of over £30,000 per employee lost. 

For SMEs, particularly, a high turnover rate can become both financially expensive and prevent growth as staff need to be constantly changed and embedded in the team, preventing staff from being at full productivity for longer. 

When not tracking information, turnover can seem random and so can be hard to prevent. But by taking note of exit reasons, these effects can be directly limited. It can also help by examining who is leaving and whether there is a pattern in which team, or their length of tenure.

By using this information, an SME can address problems with more confidence and more accuracy. They can tell whether the issue is onboarding, or incentives for staying longer being insufficient. This safety and understanding can help them build a solid foundation, ready for growth.

Attendance and Hours Management

A third key piece of information for SMEs to use is the collection and analysis of employee attendance and hours worked. Unclear attendance information and casual handling of hours worked can lead to multiple problems, from payroll inaccuracies to a negative work culture.

SMEs, who might rely on more informal methods of handling information due to technology constraints, can be particularly at risk of this, and can have a tougher time dealing with the financial consequences.

By tracking attendance and hours, a business can ensure that payroll is accurate and completed on time, preventing potential issues for staff. It can also help businesses understand inequalities in work, the reasons why they are happening and help address them.

Having access to real-time data also helps management teams isolate and deal with issues before they become too disruptive or beyond saving, potentially removing the risk of increased turnover.

Workflow data can be simple and helpful, particularly for SMEs trying to grow in an increasingly tight market. Focusing on key points of data, how your employees are working and who is doing what can ensure that a business has a deep understanding of its capabilities and when the time comes to grow, they can do so from a position of strength and confidence.