Importance of employee data overlooked in majority of financial firms
USA, 26 May 2023: Six in ten (59%) business leaders in US financial services firms overlook the importance of employee data, according to research from data and analytics strategy consultancy, Cynozure.
When asked what benefits better use of data could bring to their organization, around eight in ten (83%) said it would save time, six in ten (62%) said it would save money, and a similar number (60%) agreed it would aid more accurate, evidence-based decision making.
Other commonly cited benefits include a better understanding of customers (62%), and the enabling of more sustainable practices (56%). Only two in five (41%) said it would help them to understand employees better, making it the least recognized benefit overall.
Insights acquired by analysis on employee data can provide organizations with innumerable benefits, including information about employee productivity, retention rates, and happiness in the workplace.
Other research has revealed 63% of organizations in the US agree that retaining employees is more challenging than hiring them. By regularly collecting and analysing employee data, businesses are empowered to identify workplace trends, preferences among staff, and any areas for improvement, empowering them to act accordingly to improve retention rates.
When considering that US employers collectively spend around $2.9 million each day looking for replacement workers, the potential benefits of utilizing data in this way are clear – particularly when it comes to cost-saving.
Data can also boost employee engagement which can, similarly, improve an organization’s bottom line. It has an important role to play in engaging employees, for example when it comes to analyzing the impact of certain communications, identifying disengaged groups, and reviewing the findings of employee engagement surveys.
Jennifer Agnes, Managing Director, Cynozure, comments: For many business leaders, employee retention and satisfaction are constant worries. Research shows that it is 50-60% more expensive to replace a good employee than to keep one. Data can provide insight into the most effective ways to keep employees happy at work, and identify problem areas before they have a chance to arise into bigger issues. The knock-on impact of this is increased productivity, a happier workforce, and a healthier bottom line.”
Cynozure research calls for stronger data leadership in US financial firms to unlock data benefits
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