Big Data Analytics is trending currently and every organization is investing millions of dollars to get a big chunk of it. HR is also not lagging behind in this race in the field of Big Data Analytics, as it has a plethora of business and workforce data or big data, readily available.
Human Resources analytics, is the application of sophisticated data mining and business analytics techniques to HR data. The goal of HR analytics is to provide an organization with insights for effectively managing employees so that business goals can be reached quickly and efficiently. The challenge of human resources analytics is to identify what data should be captured, and how to use the data to model and predict capabilities so the organization gets an optimal ROI on its human capital. Talent analytics tools provide a way to assess what makes an employee successful in a role and build a model or qualifications template for hiring. Talent analytics comes handy when you have to retain top talent in the organization. Using talent analytics shouldn’t end once you’ve put the right people in the right places. In fact, it’s a great way to keep your top talent engaged once they’re in the right roles, too. Many talent analytics tools today can determine which factors correlate with attrition and whether these factors actually have an impact on different organizational career paths. These tools look at employee data for the cause behind turnover and help determine what’s happening.
I recently came across a few companies operating, applying talent analytics within their organizations and thought could share with you.
- Almost every company says it values employee engagement, but some—including Starbucks, Limited Brands, and Best Buy—can precisely identify the value of a 0.1% increase in engagement among employees at a particular store. At Best Buy, for example, that value is more than $100,000 in the store’s annual operating income.
- Many companies favour job candidates with stellar academic records from prestigious schools—but AT&T and Google have established through quantitative analysis that a demonstrated ability to take initiative is a far better predictor of high performance on the job.
- Employee attrition can be less of a problem when managers see it coming. Sprint has identified the factors that best foretell which employees will leave after a relatively short time.
- Professional sports teams, with their outsize expenditures on talent, have been leading users of analytics. To protect its investments, the soccer team AC Milan created its own biomedical research unit. Drawing on some 60,000 data points for each player, the unit helps the team gauge players’ health and fitness and make contract decisions.
Do you use HR analytics? You can share here on how beneficial it has been to your organization. If you’re planning to set up a new team catering HR analytics, I can help. Let’s connect.