Data analytics is becoming one of the most fundamental aspects of process improvement in all industries and departments. When it comes to HR, the application of data science will revolutionize industry. Understanding industry structure and workforce is very important as it helps in business with a variety of internal decision. Data analytics will help in proper evaluation of the employees by establishing proper benchmarking. Also, extensive insights can be generated by the use of past data. Various study have been conducted which had shown how HR analytics can help reduce cost by 30 percent and can drastically improve performance and savings.
Data analytics helps in optimizing overall employee performance, retention, development and acquisition. It involves integrating and examining internal metrics, social media data, and use of calculated benchmarks for more informed solution. These are 9 areas in which data analytics can help HR:-
1. In Talent Acquisitions:
Smart organizations are using Data analytics in talent acquisition extensively, helping the organization in saving time, money and also acquiring best available talent. Also, data analytics is helping brands to quantify their brand attraction in the job market. Bad talent acquisitions have various costs like productivity cost, financial cost, employee moral cost and reputation cost. Data analytics can help us set augmented recruiting funnel, examine proper benchmarking and share with decision makers. You can utilize the data to enhance diversity in the company, evaluating screening department wise and creating diverse talent pool. We can also employ talent analytics. All this reduce hiring time and also create proper channel.
2. In Training and Evaluation:
HR analytics can help in evaluating present employee level and help them to be trained in the area where they are lacking. Self-paced online personalized learning is the most cost effective way to teach employee. Also it helps in creating a self-development environment around the employee. A platform can be built where the employee can gauge their development and individual growth. Data science has the ability to examine employee learning and to conduct the cost/benefit analysis for every single course they organize.
3. In Employee Performance:
Data analytics can extensively help in improving performance of the employees. It can help in preparation of best practices, checklist and eliminate unproductive system. It can also help us establishing a real time employee performance dashboard and also give personalized insights to employees in improving performance.
4. In Financial decisions:
Using advance analytics, HR can gauge the best financial model for each member of the company. Also, it can help in taking decision in terms of reduction of cost and timing of increase in salary.
5. In Employee engagement:
Analytics can help extensively in employee engagement. Firstly it can help employers in personalization so that employer can interact with each employee as an individual. Secondly, it will help in understanding the events and their impact on employees moral and motivation. Thirdly, it can help gauge the kind of culture and its impact on employees. Employers can also understand the result after implementing employee engagement program.
6. In Retention:
Data analytics helps extensively in understanding the reason why employees are leaving the organization. It can help organization develop a system by which high performing employees are retained. It can help organization understand the motivation of the employee in leaving company. Through analytics, data driven program can be conducted to gauge employee satisfaction, locate trends and pattern. Also a prediction can be made about employee need, desire and expectation. As for organization, retention is among the top priority of high importance.
7. In Planning:
Data analytics can help in future planning and help in build long term perspective for the company. It can help organization align its goal and help in reducing future cost. Future and predictive analytics of requirement can help in understanding future hiring decision and trends. This can give companies competitive advantage and help company implement before competitor. Proactive change and behavior will help in mitigating risk and help in companies survival and development.