In today’s rapidly changing and advanced world, finding talents that fulfill organizations’ needs is much more intricate. Even, competition for top talent will be among companies’ top challenges this year. Most companies make use of big data analytics to get an edge over their competition. As data are being leveraged to comprehend every part of a business operation, analytics tools are being inserted into day-to-day decision making. However, the use of data analytics is now practicing as people analytics in the HR section.
People analytics typically is the analysis of a business’s personnel data in order to get meaningful insights. With these insights, companies can know how to use their personnel to accomplish more as a company. In HR, people analytics experiencing a seismic shift.
Driven by the prevalent adoption of cloud HR systems, businesses are investing heavily in programs to utilize data for all aspects of workforce planning, talent management, and operational improvement.
As per the Society for Human Resource Management (SHRM), HR professionals believe the most critical competency for showing business acumen in the coming years will be understanding HR and organizational metrics and analytics.
Applying People Analytics
Reportedly, the early adopters of people analytics were professional sports teams. The management of the Oakland Athletics baseball team, for instance, excellently pioneered the application of enhanced data modeling. Nearly all major-league teams have now integrated people analytics into their sport’s traditional models of talent management.
Here are some ways of how people analytics benefits companies looking for top talent.
More Effective Talent Acquisition
Earlier, acquiring new candidates was based on the interaction and intuition of the hiring manager. However, this has not always been reliable and efficient as the hiring processes are becoming more difficult with the rise of the competitive business landscape. Most people analytics teams rely on data analytics, saving significant time HR professionals spend on manually screening potential additions to their team. People analytics also makes talent acquisition more effective by trimming down implicit bias that could otherwise arise when the entire hiring process is manually done.
Reduce Employee Turnover
By leveraging people analytics, businesses can find out the reason behind the employee exits and figure out how to lessen the turnover. They will also be able to solve these problem areas by finding out innovative ways using people analytics so that employees can feel comfortable using their talents at organizations. In the same context, data analytics classify the areas of a company’s setup, structure and culture that make leaders so appealing to employees. Afterward, they can focus on intensifying this factor in order to enhance employee retention, engagement and productivity.
Improve Employee Training
Training is a significant aspect of hiring and retaining quality employees for businesses. It depicts that companies are assisting employees in realizing their full potential and encourages them to learn new skills in their field of expertise. If they don’t do so, this can result in employee debilitation, poor employee morale, and a lack of direction. Thus, people analytics here helps organizations, enabling them to carry out their responsibilities in training and skilling their employees. With people analytics, they can find this out and create methods to score the training outcomes. If the training courses and methods are futile, it can also enable businesses to pivot those that offer better results.
Enhancing Business Performance
As a growing number of businesses are applying analytics for recruiting and retention, they are more able to see a clear link between talent and leadership pipelines, cost reduction, and efficiency gains. Considering a study by Bersin by Deloitte, companies that leverage talent analytics or people analytics to support business decisions perceive an 82 percent higher three-year average profit than their counterparts. Moreover, people analytics is also being applied to a broad array of business challenges and recruiting talent remains the major area of focus, followed by performance measurement, compensation, workforce planning, and retention.