Human resource is witnessing the advent of two major fields, The Big Data and Hiring Analytics. Companies are accepting the evolution of these two major twisters in their HR policies and practices. The adoption of HR Analytics is providing the differentiator advantage among their competitors. The companies are gaining the competitive edge over their competitors.
The power of HR Analytics and Big Data is making the companies ditch their “intuitions” for any decision to make.The decisions have become more promising and accurate with the use of these practices. That is why companies are investing their huge money into talent management software and a brigade of special staff including data scientist, statistician and analysts.
These newly highlighted specialists work with HR team to create defined analytics to escalate the company’s performance. As employees are the central bodies of the organization, it is the HR department which takes care of every aspect of these bodies. In that way, HR is the data collector of the organization who collects information regarding the employee information, hiring requirements, salaries, attrition and so on.
However, this useful data could be scattered and unused in the absence of a proper HR analytics tool. This is when data analytics come into the picture. A desirable HR analytics tool could use HR and big data analytics to interpret this useful data and transform it into useful statistics. Once patterns are highlighted, HR can decide the course of action based on that data. Here are 4 magical benefits of HR analytics.
Improved Hiring Decision
HR analytics make predictive analysis easier and helps HR to make the better choice based on historical data. A great HR analytics tool can make the difference by making the HR easily derive the best candidate to hire from the historical data.
For example If you hired 20 candidates and 10 out of them are from a particular background failed at it, perhaps you will not hire someone again from similar background. HR analytics prevent you in making mistakes. Moreover, it also allows the recruiter to learn more about candidates through online resume database, applications, social media profiles, records etc.
Training is the ultimate need of anyorganization. Gaps in the process of training can lead to many big problems and can increase the cost to the company. The various professional development programs offered by the companies, if not handled properly, can lead to being a major part of their budget.
It is highly suggested to make an investment for the training by collecting data and learn from the pattern. HR analytics provide the full swing to the training program. It helps the organization identify if employees are making the full use of the opportunities. Are they making the use of the knowledge and skills being indulged into them during the program?
HR analytics helps the company look at the employee's professional life by tracking, sharing, and analysing the performance related data. This is why companies do track and record the behavior of the employees with the customers, co-workers and how they spend their time. Furthermore, the employee's performance data could be used by the hiring manager to identify the great talents. This data not only provides more insights about the employees but also shape the strategies to boost the employee morale, retention and engagement.
HR analytics is the major tool to identify the retention rate of the employees. It tells the company the reason why the employees leave and why they stay. The reason could be any, whether they leave for their underperformance, compensation, lack of skills or anything else. HR analytics could also be helpful in finding the skill gaps and areas where employees are struggling.
HR can use various tools like employee satisfaction surveys, team assessments, exit and stay interviews to find out the reason of employee attrition and chart out the strategies to retain them. Today HR analytics is on the top of the stack and has created the assured advantages of its users. It has become the core part of the company’s operations and strategies and would deliver the outputs in the same way.
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