Did you know the global cost of disengaged employees has skyrocketed to $8.8 trillion each year? It’s a staggering statistic, but low engagement doesn’t have to be a given. Consider the following facts:
- According to a survey conducted by Paychex, more than 83% of employees were satisfied with their jobs when their employer was transparent compared to a 57% satisfaction rating among those who felt their employer wasn’t transparent.
- Similarly, 75% of employees at transparent companies said they would stay with their current jobs compared to only 45% of people at non-transparent companies.
Employees who are treated like informed stakeholders are more likely to rally around the company’s mission and success. And this starts with providing access to actionable insights drawn from the constant stream of trusted data. With the right information at their fingertips, employees can make informed decisions, sharpen their analytical skills, and ultimately drive greater outcomes for their business.
Failure to provide access to quality data and insights can have a direct impact on employee satisfaction and retention, creating a negative downstream effect that touches many areas of the organization. These issues can lead to missed opportunities for private equity firms that are under pressure to maximize profitability and efficiency, as well as portfolio companies seeking to attract potential buyers and maximize their valuation.
An Employee-Centric Approach to an Analytics Platform
Having accessible data within a modern, carefully thought-out Analytics platform is an effective mechanism for increasing employee satisfaction and retention. Employees will feel more empowered to make informed decisions on a day-to-day basis, resulting in efficiency improvements and a deeper understanding of the business and their customer.
This is why companies should have an employee-centric mindset when developing all components of an analytics platform. A better employee experience translates to a better customer experience, which can unlock exponential growth that results in higher profitability and higher valuation at the time of exit.
Real-World Applications
Every CEO/CFO of PE-backed companies has regular meetings with their board (monthly operations review, quarterly, etc.). A group of employees will typically spend a significant amount of time gathering data to prepare for these meetings. A well-established analytics platform simplifies this process, enabling employees to focus their efforts on adding value by prepping meaningful insights instead of manually analyzing data.
This is a win for employees who experience higher levels of job satisfaction because they feel their time is valuable. Of course, strong performances in board meetings can raise their profile and lead to opportunities for advancement. This is also a win for the organization because more meeting time is spent on value-added insights that drive growth.
We are deeply committed to this approach because we’ve seen firsthand how it drives tangible business growth. By leveraging analytics through dashboards, we can strategically staff projects, align with revenue targets, and monitor performance—freeing up bandwidth to focus on delivering greater value to our clients. These insights not only optimize our operational efficiency but also provide a clearer view of our growth trajectory, enhancing our ability to lead client relationships and contribute meaningfully to overall business expansion. This approach equips leadership teams with the data-driven insights needed to accelerate value creation across the board.
Private equity firms and portfolio companies can realize strategic and practical advantages from a modern BI platform. Those advantages can increase significantly with an employee-centric approach that improves employee satisfaction and retention and, consequently, positively impacts profitability and valuations.
If you’d like to learn more about the benefits of alignment between BI and the employee experience, let’s have a conversation.
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