HR Analytics
How predictive HR analytics can provide competitive edge to business
The need for HR to understand the importance of data, metrics and Analytics, and utilizing it to accelerate and drive business outcomes is critical
Talent is in short supply and this fact is globally relevant today. High turnover, soaring competition between organizations for talent and challenges related to employee engagement have forced organizations to adopt technological interventions in finding insights into what the talent wants and how can organizations effectively manage,attract, retain, engage and motivate employees who can optimize and drive business decisions.
This is the time for datafication of HR and this holds the potential to alter the dynamics of the industry forever as it not only provides HR a pivotal role in driving key business decisions but also impacts the bottom line directly.
Organizations today realize that it is imperative for them to comprehend and have standardized, systematic and precise insights into what actually matters to the business performance, especially its workforce. Statistics, data mining and predictive/workforce Analytics have caught the fancy of the CEOs, CHROs and leaders today are able to understand the application of data-driven tools that enable discernable decisions and directly impact financial results. Technology adoption and specifically digital technologies have enabled the analysis of large data trails which in turn allow in deriving insights on what occurred, spot trends and use this to anticipate future patterns that are likely to emerge, according to Shankara Rajan. Using data and Analytics to drive business decisions is the factor that differentiates the business outcomes and provides the competitive edge. Today an increasing number of organizations are turning to HR Analytics for decrypting exponentially voluminous data, in a bid to make well-informed HR and workforce decisions, according to Akhilesh Tuteja and Ira Gupta.
However, tools like Big Data & Analytics have still not matured as fully competitive strategic HR instruments and the technical complexity of its application to the domain of HR poses a challenge.Though translating HR metrics into insightful business data is in its nascent stages, organizations are working towards building Analytics capability to successfully design solutions to organizational challenges specifically related to talent and people. According to Bart Baesens, Professor Big Data & Analytics at KU Leuven (Belgium), not many successful applications of HR Analytics have been reported yet in the industry. But a few of the domains that can see HR Analytics application are job recruitment, where building analytical-based recommender systems can allow to target the right jobs to the right people; improving employee attrition by carefully analyzing historical data about employee churn behavior and relating this to employee and/or job characteristics; or the impact of compensation on job motivation and/or satisfaction. The resulting insights of using HR Analytics can be used to intelligently optimize business decisions and keep the workforce optimally engaged.
Below are HR Analytics Experts views on the function
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