Many organizational departments rely on analytics for decisions they make and strategies they implement. Through using analytics and data, these departments can get a better idea of what customers and clients need or want. But until now, HR hasn’t led the way. That’s about to change as HR braces for an analytics makeover.
Business analytics is used primarily in logistics or marketing. But HR is beginning to dip its toes into the world of data-driven tracking and measurement. Many companies have already implemented HR analytics. However, big data metrics aren’t always understood. And they’re seldom used with practical applications.
As we get deeper into 2017 and HR analytics grows more popular, we expect to see businesses take advantage of big data in new ways. Here are some areas that should benefit from appropriate HR analytics implementation:
What to Expect From an HR Analytics Makeover
1. Better Data-Backed Hiring and Promotion Processes
Hiring and promotion processes can be complicated. When a hiring manager is in charge of sifting through applications to select the best candidates, personal bias can easily cloud their judgment. This can prevent the most qualified applicant from getting the job. The same idea applies when HR considers who should be promoted.
However, by using data gathered through analytics HR teams can identify who is best suited for a job or promotion. For example, it’s easier to determine who outperforms coworkers and who has the right skills for a position.
2. More Efficient Ways to Track Engagement, Productivity and Job Satisfaction
Your human resources department is responsible for ensuring company employees are meeting certain standards and performing their jobs correctly. Unfortunately, this can be difficult to track. In 2017, we believe analytics will help HR departments see how engaged and productive employees are.
Job satisfaction is another area HR departments must consider. Very few employees want to openly admit to their boss that they are unhappy in their jobs. But when people don’t feel connected or committed to their work, the whole company suffers. By using analytics, HR departments can help make suggestions on how to improve job satisfaction.
3. Better Operations and Cost Management
If you’re trying to oversee the costs and operations of an entire company without analytics, there are definitely going to be some key components you miss. By implementing HR analytics in 2017, business owners can use data knowledge at all levels of their companies to improve operations and reduce costs.
Analytics can help HR departments get a better view of how the company is running and what could be modified to save money or time. With the right programs, systems and software, HR analytics can actually be beneficial to the company as a whole, not just to the HR department.
4. Ability to Plan for the Future
Analytics can also be beneficial for creating plans for the far-off future. While you may have a strong workforce now, this does not necessarily guarantee the workforce will continue to stay strong in the next few years. Through using HR analytics, companies can track what problems may come in the future, what those problems could cost the company, and what the HR department will need to do if that problem happens.
This idea is especially true for companies with employees all around the same age or experience level. If you don’t have a healthy mix of ages working for your company, you risk having each employee retiring around the same time. Without a proper plan on how you’re going to navigate this situation, the HR department could be left scrambling for new hires. With proper analytics, you could see this coming.
When the HR department takes advantage of analytics, the entire company benefits. This helps HR focus on hiring the right employees, ensuring they’re doing their job productively and efficiently, and overseeing company operations. As a result, HR teams can be a more strategic partner in business performance.
Soon, using analytics in HR will be something companies can’t ignore. As data-based technology advances, HR analytics will become just as crucial as analytics in other business departments.