1. Explain why an organisation needs to collect and record HR data.

Reasons why organisations collect data

To meet legal requirements: • Checking that each employee is eligible to work in the UK • Ensuring that the Company is complying with any governing body e.g. FCA • Making sure that processes such as grievances, disciplinary, maternity etc. are performed in the correct manner.

To help make informed decisions: • Understanding whether the company needs to expand and what skills they will need • Looking at where redundancies might be made • Using benchmarking to make sure that employees are paid at a competitive rate

To identify areas of growth: • Looking at demographics and understanding where products sell best • Understanding what skills are needed to hit the target market and what skills current employees need to improve to increase productivity

2. Identify the range of HR data that organisations collect and how this supports HR practice.

Range of HR data that organisations collect

Exit Interviews

Exit interviews enable HR to understand why an employee is leaving the Company. The HR department are then able to analyse the data and implement necessary changes i.e. it might be that the manager of that area needs additional management training or that Company are not paying competitively and a benchmarking exercise would be useful. By looking at this data the organisation can limit the number of employees leaving.

Recruitment

Looking at recruitment data enables HR to understand the timescale, success rate, top performing agencies and the number of interview stages, by looking at this information HR are able to make that the recruitment process runs as effectively as possible. It can also be used to monitor diversity and equality, and making sure that the organisation has a lawful recruitment policy.

2.1 Describe different systems for recording and storing HR data and the benefits of each.

Different Systems for recording and storing HR data

Manually

Keeping a personal file on all employees; filing paper copies of contracts, personal forms, CV’s, interview notes, performance reviews, grievance or disciplinary paperwork etc.

The major benefits of storing data manually: • Its cost effective • Files are easily accessible • Not reliant on IT • You have documents with the original signature

Electronically – Internally

A central HR database where all employees details are stored, using the Intranet & email to communicate information to staff, self-service portal to log absence, annual leave etc.

The major benefits of storing data electronically (internally) are • The ability to share information with other departments • Running reports on certain sections of data • Paper-free office • Most internal IT systems are very secure • You don’t have to be in the office to access the data

2.2 Explain legal requirements relating to the recording, storage and accessibility of HR data.

Data Protection Act 1998

The Data Protection Act 1998 is a UK Act of Parliament which defines how an organisation should keep and store personal information. Companies are not allowed to share anyone’s personal (whether that be an employee or a customer) information without written consent. Data must be kept securely and only accessible to those who need it. Since April 2010 the ICO have had the power to issue fines of up to £500,000 for serious DPA breaches.

Freedom of Information Act 2000

The Freedom of Information Act 2000 allows the public to access any information held by public authorities. Public authorities include the NHS, State Schools, Police Forces and Government Departments etc. Information requested could include computer files, letters, emails, photographs, printed documents etc. If a member of staff is found guilty of deliberately concealing, altering or destroying information, they themselves could be liable to prosecution and could be fined a maximum of £5000.

3.1 Analyse and interpret HR data & 3.2 Present findings in a clear, concise and meaningful manner to inform decision-making within an organisation.

The data that I have analysed is the number of employees within the back office that have left since the 1st January 20011 and the reasons why they have left. During the last 3 years the back office have seen a number of changes and the below data shows the reasons why these changes have been made. I have also looked at how long each employee has been with the organisation.

Purpose

The purpose of this information is to understand why employees are leaving the organisation and if there is anything the organisation can do to increase retention. It will also help to understand how the recession has effected back office functions.

What data might we collect and analyse

• The date the employee left the organisation • The reason they left the company • How long they had been in employment • Which back office function they worked for

How can this data inform decision making

• If a large number of resignations are from one department, then it may mean that the manager needs more training and guidance from the HR department. • The organisation may change the way that they recruit new employees and look at the cost implications of replacing employees. • The job could be too stressful or have a negative effect on an employee’s health, if this is case then the organisation might take the decision to provide health assessments. • The organisation could take the decision to re-structure the department rather than replace people. • It might be that the organisation has to perform a benchmarking exercise to ensure that the remuneration package is competitive. • Due to the fact that many of the leavers had only been with the company a short while, the induction process needs to be looked. It could be that the employees are not being socialised into the organisation.

Conclusion:

The data shows that the back office function has suffered major redundancies over the last 3 years due to the financial crisis. It also shows that the amount of employees resigning has been declining since 2011. Even whilst going through a financial crisis, resignation is the top reason for the leaving. This data also conveys that the majority of redundancies were made during 2012, and it looks like going forward that, that amount of redundancies will not happen again this year. The data also shows that the majority of employee who have left have not been with the Company for that long.

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