Employee satisfaction and retention have become critical factors for organizational success. According to Gallup, only 35 percent of employees in the United States are engaged in their work, forcing companies to turn to data analytics to address this challenge.
Using HR data has become advantageous and essential for small and medium-sized businesses (SMBs) competing with larger organizations for talent. “It’s about setting up the industry so there is fair competition between larger organizations and SMBs, in terms of employee engagement, compliance, and operational efficiency,” explains Jeff Pelletier of Folks, a Canadian HR software company.
Transforming HR Decisions Through Analytics
The shift from intuition-based to data-driven HR decisions changes how companies approach employee satisfaction and retention. Organizations that effectively use people analytics enjoy 82 percent higher three-year average profit than their low-maturity counterparts. Companies with high levels of employee engagement outperform their competitors by 21 percent in profitability, showing the tangible benefits of focusing on employee satisfaction.
For Folks, which recently secured a $4.5 million CAD financing round, helping SMBs harness this power has become central to their work. Its comprehensive HRIS with more than 30 Core HR modules enables businesses to collect and analyze critical employee data from various touchpoints.
“We optimize the entry of redundant administrative processes, saving up to 8 hours per week for some administrative roles,” notes Jeff Pelletier. “This efficiency allows HR professionals to focus on strategic initiatives rather than administrative tasks.”
The company’s approach aligns with industry best practices for measuring satisfaction and retention, including regular surveys, one-on-one interviews, and tracking key metrics like retention rates and absenteeism. By aggregating this data in a centralized system, Folks enables SMBs to identify patterns and trends that might go unnoticed.
From Insights to Action: Implementing Retention Strategies
Collecting data is only the first step. The real value comes from translating these insights into actionable retention strategies. According to Deloitte research, companies prioritizing analytics-driven HR are 3.5 times more likely to outperform their peers.
Folks‘ platform enables SMBs to implement targeted interventions based on data insights. For example, if analytics reveal that employees in a specific department are showing signs of disengagement, companies can proactively address the issue before it leads to turnover.
The software’s performance review module allows customized evaluation processes, including self-assessment, manager evaluation, and peer review. This comprehensive approach provides a more nuanced understanding of employee performance and satisfaction, enabling more effective interventions.
Making Sophisticated HR Tools Work for SMBs
Many SMBs struggle to turn HR data into action, often lacking the infrastructure of larger enterprises. Folks addresses this challenge by offering tools designed to be both powerful and accessible for growing teams.
“We promote communication and collaboration between employees, managers, and organizations with customizable and powerful HR modules,” says Jeff Pelletier. Strengthening workplace communication is one of the most effective ways to improve satisfaction and reduce turnover.
Folks has earned the trust of over 1,200 clients and recorded 94 percent revenue growth in the past year, which might signal that SMBs are increasingly investing in data-driven HR. The platform enables teams to shift from reactive problem-solving to proactive planning, an essential move in a market where retention and performance are closely connected.
Small businesses using HR analytics can now recognize patterns, implement targeted interventions, and continuously monitor progress, capabilities that were once limited to large enterprises.