Posts

HR Is About to Get an Analytics Makeover

Many company 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 their customers and clients need or are looking for.

While analytics may be used primarily in logistics or marketing, HR is beginning to dip its toes into the world of tracking and measuring insights through analytics software. Many companies already implement analytics into their human resources, but those big data metrics aren’t always being used with practical applications.

As we get deeper into 2017 and HR analytics become more popular, we expect to watch businesses take advantage of big data in new ways. Here are some of the areas we see growing with the appropriate implementation of HR analytics.

Data-Backed Hiring and Promotion Processes

The hiring and promotion processes for businesses can become complicated. When a hiring manager is in charge of sifting through applications and selecting the candidates who fit best, their own personal bias comes into play. This can prevent the most qualified applicant from getting the job. The same idea applies when HR is looking at who should be promoted.

HR departments can use the data gathered through analytics to look at who deserves the job or promotion best. Through their analytics, HR professionals can see who is performing better than coworkers and who has the right skills for the position.

Tracking of 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 of the company are.

Job satisfaction is another area HR departments must be aware of. Although very few employees want to openly admit to their boss that they are unhappy in their jobs, employees who do not feel connected or committed to the work that they’re doing can cause the whole company to suffer. Through the use of analytics, HR departments can help make suggestions on how to improve job satisfaction.

Better Management of Operations and Costs

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. Through 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.

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 will benefit. With a stronger focus on hiring the right employees, ensuring they’re doing their job productively and efficiently, and overseeing the operations of the entire company, the HR department will give business a better boost.

Using analytics within the HR department will become something companies can’t ignore in 2017. As the technology advances, HR analytics will become just as crucial as analytics in other business departments.

Photo Credit: Jahangeerm Flickr via Compfight cc

Five HR Analytics Terms You Need to Know

I love big data. I love it for many reasons, but, as I’ve said before, one of the main reasons is the way it’s “raised the profile” of HR and its importance. The sheer volume of information HR analytics can bring to the table has moved HR practitioners from an “out of sight out of mind” back room business function, to a major player when it comes to company goal setting and overall planning. Today we use HR analytics for everything from determining passive and active candidates; assisting with onboarding, training, and engagement; and predicting retention, attrition, and performance rates.

That said, the sheer volume of data available today for HR professionals to work with can feel overwhelming, and at times, paralyzing. Not only do we have mountains of data to interpret, but the data is constantly evolving, shifting, forming, and reforming as we learn about the newest technologies, which actively measure even more employment-related functions.

The key to getting your arms around big data and analytics is to do your research and start to understand it. And to do that you must become familiar with its “lingo”.

Five HR Analytics Terms You Need to Know

Before 2011, if you Googled “data scientists jobs” you would be lucky to find more than a handful of listings. That has changed, dramatically. In fact, by 2015 the demand for data scientists had surpassed the demand for statisticians. But if you’re not lucky enough to have a data scientist on your team, fear not. Knowing the following five terms will lead you one step closer toward all the benefits big data and analytics has to offer.

Data mining. Try and wrap your head around this number: Around 2.5 quintillion bytes of data are created every day. Clearly, it can’t all be analyzed. There’s not enough manpower on earth to get that job done. And that’s where data mining comes in. Akin to “panning for gold,” data mining involves sifting through raw data, and finding where patterns emerge. Analysts convert those patterns into tangible information, which then allows for relatively accurate prediction making about real life behaviors or events.

Machine learning piggybacks nicely off of data mining, as it’s often used to make that mining job just a little easier. Just as it sounds, computers can “learn” from the data ingested, helping to translate the data into recognizable patterns. You will sometimes see the term Artificial Intelligence used instead of “machine learning,” as AI is what provides computers with the tools they need to absorb and sift through new information.

Hiring channel mix modeling. There are myriad channels available today for talent managers looking to recruit, including—but not limited to—advertising, employee references, recruitment consultants, and social media. Hiring channel mix modeling allows HR pros to make use of previous data on all of the hiring channels employed in the past, and clearly map out which ones were most useful, allowing for more efficient, streamlined human resources departments and optimized hiring expenditures.

Cost modeling. Cost modeling helps those in the C-Suite understand many HR-driven costs. These include hiring and onboarding costs, the time estimated for an employee to reach full productivity, salary and productivity ratios, overall productivity, and employee turnover costs.  Cost Modeling can provide a rich “dollar value” picture of hiring and retention plans for a given year, and allow you to quantify costs associated with certain activities and processes (like mistakes made in hiring, voluntary turnover, etc.) 

People analytics. Simply put, people analytics involves combining all of the employee data in your organization—and using that data to understand and help predict potential business problems, issues like sales productivity, retention, fraud, customer satisfaction, and more. It effectively helps measure the success of both human resources practices and learning and development programs, and eventually (as new apps are developed) will begin measuring the value of different roles, leaders, and other business investments.

While “gut instinct” is always a good thing to have, long gone are the days when that and a fancy resume were the only things helping HR practitioners make hiring and other decisions. Now, big data and analytics can help HR teams run in tandem with those from other key departments, as well as play a significant part in helping their organization achieve success when it comes to business goals and strategies.

What do you think? Are there other HR analytics terms that you’ve encountered? Has your company delved into big data and all its potential? I’d love to hear your thoughts.

A version of this post was first published on Converge.xyz

Photo Credit: hocmba@gmail.com via Compfight cc