What is HR reporting? Benefits, challenges, and examples

Working in human resources (HR) is often a juggling act. After all, you’re tasked with overseeing a range of HR processes, including recruiting, onboarding, and payroll.

HR reporting is a valuable tool for monitoring your processes, gauging employee satisfaction, and ensuring best practices. But how do you know if you’re on the right track?

This article explores the importance, benefits, and challenges of HR reporting. It then offers common report examples and a list of best practices to help with your HR reporting success.

What is HR reporting?

HR reporting is a means of understanding how effective and efficient the various processes HR completes actually are. It covers the full range of HR services, including onboarding, employee training and development, and leave management. 

Key metrics are collected and analyzed to identify positive trends, organizational strengths, and areas of weakness so that you can make informed decisions for your employees.

HRIS platforms help companies streamline these processes through robust management, storage, and automation. Employee data is stored in one location, making it easy to run HR reports and analyze processes accordingly.

For example, say your business wanted to analyze the effectiveness of its recruitment process and HR strategies in different countries. HR reporting would provide the total number of employees hired in a given month or year for each country, allowing you to compare and analyze your tactics.

Since HR reporting focuses on everything related to your employees, it supports and enhances the overall employee experience. As a result, you’re better positioned to better support your employees.

What are the benefits of HR reporting?

Regularly collecting and analyzing data related to your people, their performance, company processes, organizational purpose, and key principles (the five “Ps” of HR) keeps your business centered.

HR reporting allows you to monitor employee performance, providing valuable information on training and upskilling needs.

You can also track HR strategies related to staffing, inventory, and payroll. For example, with 40% of employees experiencing payroll mistakes, you can avoid costly mistakes by regularly running reports on payroll.

HR reporting also strengthens employee engagement and boosts the employee experience. With only 33% of employees feeling engaged in their jobs, improving employee satisfaction is a key benefit of HR reporting.

What are some of the challenges of HR reporting?

HR reporting doesn’t come without drawbacks. The sheer quantity of data available can feel overwhelming, especially if you’re not sure where to place your focus.

HR reporting requires time to compile and complete the target analyses — not to mention the time needed to address issues and implement changes.

You also need to keep in mind you're dealing with personal information. Remember to maintain the security of confidential information as you pull and analyze HR reports. For example, Social Security numbers and birthdates should be redacted when analyzing leave management trends.

The 6 types of HR reporting

HR reporting typically covers six primary areas, from the moment employees start with your organization to when they separate. Here’s what they’re all about:

1. Recruitment and hiring reports

The goal of running recruitment reports allows you to identify successful (and unsuccessful) hiring strategies and adapt as needed.

You might start by identifying the types of jobs available in your company. This could include the number of new hires needed, the frequency with which these jobs become available, and how long employees typically stay in these positions. Recruiting, hiring, and onboarding costs can be reviewed, especially if you compare and contrast costs in different business locations or countries.

Analyzing company success with filling positions, including offer acceptance rates, can inform your current approach. For example, you can compare your success with the average 73% acceptance rate.

You can also analyze employee retention ratios within set periods. For example, if you determine that employee turnover is higher at the one-year mark, you can better identify and address the reasons why.

2. Training and development reports

If you target HR reporting around training and development, you’re attempting to identify your employees’ needs and how you can adapt existing programs for current and future hires.

Collect and compare data about the types of training offered. Do you have in-person or virtual courses and webinars available? If so, which employees are taking advantage, and at what rate? With this information, you can see which offerings are most impactful and which could be reduced or eliminated, saving the company valuable time and training costs in the long run.

Running the numbers also allows you to identify and resolve any gaps in training. You can determine the number of employees who would benefit from professional development in specific skill areas or whether more upskilling opportunities are needed.

3. Performance management reports

Performance management reports assess and monitor employee performance. This allows you to evaluate, monitor, and adapt your programs for efficiency, quality, and cost-effectiveness.

Employee engagement is a key metric to collect and analyze, as it’s closely related to key performance outcomes, including productivity, work quality, and business profits. High engagement is also connected to the employee experience and overall job satisfaction, indicating whether employees are likely to stay for the long term.

HR reporting can collect individual or team productivity ratings, too, allowing you to see who works at high levels and in which departments. Track project completion rates and identify the most profitable projects to inform your decisions.

Analyzing performance management includes gathering employee feedback through surveys, private check-ins, and annual reviews. Identifying employee goals, skill sets, competencies, and areas of need shows the employee you are invested in their success with your company, leading to higher performance and a better bottom line.

4. Attendance and leave reports

HR attendance and leave management reports give you more oversight and a better understanding of employee attendance.

Calculating accurate attendance rates shows your employees’ actual working days, allowing you to catch absentee patterns and address issues quickly. You can also check whether shifts are successfully and constantly covered, as well as determine which employees are available for last-minute shifts.

Time-off and leave management reports indicate how employees use their sick time, vacation time, and other paid time off (PTO). You may identify patterns here, too, such as a high number of employees requesting time off in the summer, leaving you with scheduling gaps.

With these reports, you can better balance employee schedules to ensure your business is always adequately staffed and employees aren’t overworked.

5. Payroll reports

Given that the most common payroll error is underpayment, it makes sense to start analyzing these metrics first. Look at your employees’ entire compensation packages, including their base salaries, overtime amounts, and PTO allotments, to assess whether you’re staying competitive within your industry.

HR reporting reveals the accuracy of tax deductions, including payroll and income taxes and employee contributions to retirement and government programs. It also helps you comply with tax, labor, and employment laws.

HR reporting also confirms or refutes the accuracy of the employee information on file, including confidential or sensitive information, training and development history, promotions or advancements, and professional certifications.

6. Turnover reports

Once you have valuable employees on the payroll, you want to do what you can to keep them there. 

With turnover or attrition reports, you can identify favorable strategies and where your business needs to make adjustments. For example, employees may cite a lack of professional development as a critical factor in their decision to leave. Now, you have data to support the creation and implementation of appropriate training programs.

Use HR reporting to analyze employee turnover rates, times, and quantities. Collect employee feedback from exit interviews, too, so that you can learn why they’re leaving (and maybe where they’re going).

HR reporting best practices

Completing HR reporting alone is not enough. Implement the following best practices to ensure you’re making the most of your time and energy.

• Ask the right questions

Before you initiate an HR report, specify what you need. If you want to improve employee attendance, start by tracking leave. Is there a pattern of absences around a particular time of the year? Or has an employee suddenly increased their use of sick leave? Use this data to identify the causes and come up with the right solutions for these types of situations.

• Ensure the quality and accuracy of data

Establish solid procedures for data collection and invest in a secure system. Ensure your HR personnel are trained properly, and audit your processes regularly.

• Consider key performance indicators

Determine how the data aligns with your current and future key performance indicators. For example, consider what are your long-term business goals, and what metrics you need to consider to form an HR strategy.

• Update and automate

With the data from your HR reporting, find ways to automate your HR process. An HR management platform can help you collect, analyze, and strategize data for HR process automation.

Maximize your HR reporting with Remote

HR reporting allows businesses to gain insights into their practices and use the evidence to make informed decisions. Using HR software makes the process even easier. 

Remote’s global HR Management has everything you need to manage and grow your business, whether you stay local or expand internationally. Our HR software centralizes all your employee data with maximum security, so you can manage all necessary documents for HR reporting.

Create a free account today to simplify your HR reporting through one consolidated platform.

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