Demographics of technology owners will determine the type of intervention in post modern HR, while an entirely different set of experts will use this to optimally influence business and people processes. Adopting diverse statistical tools and data gathering methodologies has now become the easy part in Human Resource Management. How you use analytics to drive HR issues and decisions, is critical to business. As predictive, cognitive, descriptive & prescriptive tools penetrate areas of HR, the important piece to consider is the decision making process that will follow.
Analytics go beyond stating past data to assess how fundamental certain tendencies are and what they could imply going forward. Smart organisations need expertise to use analytics methodology and technology effectively.
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People analytics influences business strategy and growth by supporting business strategy to revenue growth. This can be done by predicting talent requirements and focusing on where your highly contributing talent is located, while also identifying potential talent that will support growth. Further, analytics can forecast potential leadership gaps and help develop succession pipelines to protect the business from the vulnerabilities of skill deficiency.
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People analytics can influence top line, sales growth and cost by combining with customer and pricing data which can improve the way you organise and develop human capital. Analytics can provide analysis of spend on people and ROI by using compensation, employee and financial data.Companies can also study demographic, education and experience considerations that link with high performing sales staff.
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People analytics helps in attrition management. Deloitte’s global HR trends report tells us that 71% of surveyed executives see people analytics as a high priority and are applying it to talent challenges. People analytics can help retain top talent by proactively predicting attrition risk and identifying cost-effective programs to get people to stay.
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People analytics supports performance Management as it helps create profiles for employees with a higher likelihood of succeeding in particular roles. Certain machine learning–based analysis can predict financial performance of branch and team structures and highlight how a few roles can have an effect on business success. As a result, HR can build new organization structures. This process also dispels notions about who the “right people for the right jobs” are.
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Effective and efficient hiring is the use of advanced automation. HR can reduce costs associated with resume-screening process and improve selection effectiveness. When HR links hiring criteria to an analytics model successfully, it can identify those candidates likely to be employed by them and automatically move them on to the next stage of the recruiting process without having to analyse heaps of data.
As we know, the role of HR is to focus on interpersonal relationships in the workplace which can be difficult to assess based only on metrics.
It is known that Google tries to assimilate human aspects via the use of people analytics. By integrating quantitative and qualitative data, they enable leaders to unravel the company’s culture dynamics. They have used people analytics to improve the workplace across a number of studies and most decisions the company takes is data-driven. While many HR organizations are still struggling to gather and organise their data while simultaneously building teams, the argument for using of People Analytics is compelling.
The writer is Purvi Sheth, CEO, Shilputsi Consultants