Over the last decade, big data analytics technology has revolutionized how businesses function. Marketing executives track consumer purchasing trends and preferences to learn and anticipate their behavior. Financial officials, too, use real-time, predictive, and integrated data to gain a deeper understanding of diverse business lines.
Similarly, human resource leaders are now employing predictive talent models to identify, recruit, develop, and retain the best talent more efficiently and swiftly. Applying analytics to "human data" such as digital communications can help organizations identify pain points and prioritize the aspects of the company culture that matter most. This usage of analytics by the Human Resource professionals is better known as people analytics or HR analytics and is helping illuminate the company's human side. Here's how!
Addressing Attrition by Knowing Your People
Companies frequently try to win the talent war by putting more money into the mix. For example, a company suffering high turnover may try to persuade individuals who have given notice by offering them larger bonuses and salaries. Or they might simply let them leave. On the other hand, a corporation that uses advanced people analytics may examine the data collected from employees to identify who is likely to go and why in advance, whether the reason for quitting is dissatisfaction with their work, pay, an unsupportive boss, or simply a better opportunity elsewhere. The company can improve the workplace by predicting and addressing such issues, leading to decreased attrition and better company culture.
Recruiting Better with Advanced People Analytics
It is impossible to retain great talent if you do not first recruit them. Companies have traditionally depended on top universities around their offices, prior professional experience, and referrals for recruiting top talent. However, a growing approach is to use workforce analytics tools to evaluate the characteristics of your most effective employees within the company to determine the critical attributes necessary for a certain job function. When you have clarity on the required skill set, it becomes much easier to search for suitable candidates, regardless of referrals or educational backgrounds. Advanced people analytics helps increase the chances of selecting top talent in line with the company's requirements and decreases the likelihood of overlooking talent due to a perceived mismatch in external factors such as experience or educational background.
Recruiting and retaining the right people has never been easy, but new technologies are starting to provide new insights. Companies are adopting big data analytics to understand and deliver what is best for their employees, and this trend is likely to skyrocket over the next five years. So, buckle up and enjoy the ride.