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How To Evaluate Workforce Analytics Tools Beyond Simple Productivity Tracking

The best workforce analytics tools uncover data to help businesses improve productivity, employee retention and productivity. Learn how to evaluate these tools.

ActivTrak

By ActivTrak

Two people discuss colorful charts on a laptop screen at a wooden table, indicating data analysis. Nearby, papers and a tablet are seen, suggesting teamwork.

In a technology-forward workplace, workforce analytics software is a vital, yet fairly passive, way to discover what your employees need to thrive in their jobs. Remote and hybrid work options are increasingly appealing for people. But without the opportunity to regularly check in face-to-face, you may miss the mark on delivering a happy and productive workplace culture.

Enter workforce analytics software. These tools don’t monitor your employees’ productivity through signals like keystrokes and screen capturing. Instead, they are strategic tools for empowerment, fairness and smart decision-making that supports both business and employee well-being.

In this article, we’ll assist you in evaluating workforce analytics tools for your organization. You’ll gain a clear understanding of what to look for in a solution and how it can support your employees and your business overall.

Why companies must evaluate workforce analytics tools

Business technology never fits every organization perfectly. Your workforce has unique structure, goals and challenges. To make informed decisions, you need visibility into your organization’s current health, risks and costs, as well as the ability to anticipate trends that may impact you soon.

That starts with trusting the data you’re able to pull. PwC states that “highly data-driven organizations are three times more likely to report significant improvements.” Yet many businesses struggle to rely on the corporate data available because it often feels incomplete, disconnected or difficult to interpret.

Here, the difference between workforce monitoring and workforce analytics matters. These software types collect different data and serve different purposes. Workforce analytics focuses on insight, not oversight. It gives you information you can use to improve outcomes without relying on intrusive monitoring.

For example, HR teams use workforce analytics to track in-office attendance, identify seasonal trends and find ways to improve the employee experience. Finance teams analyze historical data to guide future budgets. IT teams assess adoption of new software tools across your organization.

Executives can review all of this information at a high level to guide strategy. The right workforce analytics platform brings these insights together in one place. You just need to evaluate your options carefully.

Evaluate outcomes, not features

Before you begin your software search, take time to define the outcomes you want this tool to deliver. Go beyond feature checklists and focus on the problems you need to solve. Even if a tool has all the bells and whistles, it’ll be useless to your team if it can’t deliver the outcomes you need. 

Use this checklist to define software success metrics before comparing different vendors:

  • Productivity gaps: Are any of your teams falling short on KPIs? If this is a significant and recurring issue for your company, look for a tool that allows you to set custom goals with clear expectations.
  • Labor cost visibility: A holistic workforce analytics tool will enable you to understand all expenses related to your employees.
  • Burnout and workload imbalance: Stay ahead of any employee engagement issues by looking for a tool that identifies potential burnout. Workforce analytics alert you to signs of potential burnout, so you can take action quickly.
  • Headcount planning and ROI justification: It’s important to justify the ROI of your new software. Workforce analytics makes this easy by allowing you to make smarter hiring decisions. For example, if you discover existing team members don’t meet productivity goals, you’ll know to focus on improving performance before adding new hires.

Defining outcomes upfront is useful in evaluating workforce analytics tools that support your business goals.

Key factors to consider when comparing workforce analytics platforms

Once you clarify your success metrics, you can narrow your options by looking at platform capabilities. When comparing tools, make sure they provide:

  • Complete, accurate company-wide data with minimal blind spots
  • Insights that translate into clear, actionable next steps
  • A privacy-first design with built-in safeguards and no intrusive employee monitoring
  • Executive-level reporting that supports informed business decisions
  • A solution that scales as your organization grows

These factors help ensure the platform remains useful as your needs evolve.

Key considerations for stack integration

Integration matters. Workforce analytics platforms belong to the broader software ecosystem, so compatibility with existing tools matters.

Your executive teams work across multiple systems daily, including HRIS, payroll, finance and business intelligence tools. Choose a workforce analytics solution that integrates seamlessly with these systems to avoid data silos and manual work.

You also need to confirm the integrations won’t slow reporting or hurt user adoption. A platform that fits naturally into existing workflows will earn more trust and use. Once you account for functionality and integrations, you’re ready to consider the budget.

Comparing pricing models and potential ROI

Like most business software, workforce analytics platforms offer a range of pricing models. While vendors vary, you’ll usually see per-user, tiered or feature-based pricing in your research.

Common pricing structures

Here’s a breakdown of what each pricing option usually includes. Keep in mind, these are just examples of typical pricing structures. Actual plans will vary across different platforms.

Per-user vs. tiered plans

Per-user pricing charges a set amount for each person with platform access. When you add or remove users, your costs change. Some vendors price users in ranges, so costs may jump at certain thresholds.

Tiered pricing offers fixed pricing based on a bundle of features. Higher tiers usually add functionality, more users or advanced reporting. This model works well when your needs stay clear and stable.

Feature-based pricing

Feature-based pricing focuses on functionality instead of users. Core features come in a base plan; advanced capabilities come as add-ons. This lets you pay only for what you need and avoid extra costs.

How to evaluate ROI realistically

Comparing pricing can feel overwhelming, but your goal is clear: Pick the plan that delivers the most value. As you evaluate ROI, ask yourself:

Keep these questions front and center to ground your decision in real outcomes.

Questions to ask the platform sales team

Once you narrow your options, request demos from a few vendors. During these, sales reps walk through the platform and answer your questions about functionality, rollout and support.

Come prepared with questions like:

  • How does the tool define and measure productivity?
  • How do you support managers and employees in adopting the tool?
  • What does rollout look like in hybrid or remote settings?
  • How do you protect employee data and privacy?
  • How do you support global compliance?
  • What results have similar organizations seen?
  • How long until I can expect ROI?

Turning evaluation into executive alignment

After demos, compile your findings for executive review. Pricing and features matter, but leaders also need to know how the tool supports financial and operational priorities.

The best workforce analytics platform isn’t the one with the most features. It’s the one that helps you make better decisions and drive real impact. Workforce analytics, paired with clear goals and a focus on ROI, will deliver powerful business results. 

You can get there with ActivTrak. We deliver a comprehensive workforce analytics solution with robust features to address your employee monitoring, productivity management and workforce planning needs.

No matter what type of solution you need, ActivTrak provides you with the price and feature flexibility you need to improve business performance.

Connect with ActivTrak to learn more about the comprehensive tools and workforce analytics data you need to assess performance, streamline workflows and increase profitability.

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ActivTrak

ActivTrak helps organizations make data-driven decisions to improve hybrid work. Our workforce analytics platform provides visibility that improves team productivity and performance, ensures compliance with policies and expectations, and informs allocation of wo... Read more

ActivTrak helps organizations make data-driven decisions to improve hybrid work. Our workforce analytics platform provides visibility that improves team productivity and performance, ensures compliance with policies and expectations, and informs allocation of workforce investments.

 

More than 9,500 customers trust ActivTrak’s unique privacy-first approach and award-winning technology which has been recognized by the Deloitte Technology Fast 500, Inc. 5000 and G2 ‘Best Of’ category awards. ActivTrak is backed by Elsewhere Partners and Sapphire Ventures.

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