For business analysts focused on talent acquisition, data visualization is an important tool that provides a quick and easy way of presenting valuable information. For everybody else, it’s a better way of understanding data. It makes looking at reports easier with visually stimulating images. Slight adjustments to such images can even render different concepts and scenarios – perfect for business intelligence and analyzing trends in human resources.
In general, data visualization helps business analysts to present sales volume forecast, understand product placements, determine factors that affect consumer behavior, and identify areas of improvement. Given these capabilities, what can it do to improve KPI reports and dashboards especially for the human resources industry or departments in organizations and companies? More importantly, what is the role of data visualization software in the increasing trend of using KPI dashboards for human resources? Let’s find out.
What is Data Visualization?
Data visualization communicates information efficiently and clearly using information graphics, plots, and statistical charts. Bars, lines, or dots represent quantitative messages and numerical data. The human brain is wired to process information more easily by looking at what the eyes can see. The use of images, graphs, and charts therefore, requires no effort when visualizing large quantities of complex information as compared to analyzing reports and spreadsheets.
Because of this observation, data visualization is considered one of the modern versions of visual communication, the study and creation of visual data representation. According to Michael Friendly, a renowned pioneer in information and data visualization, information that uses schematic forms, variables, and attributes, to convey more information is considered a form of communication.
What is a KPI Dashboard?
KPIs, or key performance indicators, are data that is used to measure the performance of an organization and various areas of its business. It is a crucial part of business intelligence because of its ability to promote improvements within businesses, the relationship of its departments, and how it can increase sales and value. While there are many areas, departments, branches, or sections within organizations, KPIs are widely used for human resources, project management, sales, and marketing.
Whereas it was presented as written information decades ago, it is now automated using KPI reports found in KPI dashboards, primarily available in web-based, desktop, or stand-alone applications.
KPI and Data Visualization
Data visualization today come in sophisticatedly displayed data in the form of fever and pie charts, detailed bars, heat maps, spark lines, geo maps, gauges and dials, and the more famous infographics. It goes beyond what people usually see in Excel spreadsheets such as the standard graphs and charts. In some cases, visuals are interactive, allowing readers and viewers to manipulate data for analysis and questioning. Others meanwhile, have notification capabilities that inform users whenever predefined conditions and other information are changed or updated.
Because of the features mentioned, many business intelligence and KPI dashboard developers use tools for data visualization in their software. Some outsource it from software vendors specializing in information visualization, while others develop their own data visualization software technology.
Importance of KPI Dashboard for Human Resources
Data visualization is effective if it can help HR analyze data and apply it to reason and as an evidence to support further information. Complex data becomes more usable, understandable, and accessible. HR then can successfully understand the design principles and comparisons of infographics, and accomplish analytical tasks. On the other hand, charts enable HR to see relationships or patterns in data variables, while tables allow personnel to study specific measurements.
The main goal of using a Human Resource Dashboard is to analyze this information to enable organizations to effectively manage its employees. By doing so, it can reach its business goals more efficiently and quickly. However, HR should first identify which KPIs should be used and how its results must create actionable feedback. The resulting feedback should be applied in a way that it can predict much needed qualifications, capabilities, competence, and potential. This way, organizations can maximize its investment by capitalizing on its human talents.
Common KPI metrics used in HR dashboards include employee performance index, employee turnover, headcount, age, absenteeism, sick leave days, salary, and work time hours. General indicators meanwhile include open positions, terminations, incentive costs, employee satisfaction, skills gaps, and training. There are many more, but HR departments need to identify which are only important for their organization.
Listing indicators enables HR to get the most out of their dashboards. Having a dashboard with data visualization software features many benefits. It can improve operations because of quality talent. It can predict staff requirements that are highly needed. It can determine which areas need improvement. It can also recognize employee satisfaction.