The application of newer techniques in the talent management industry is slowly but surely becoming the norm. People analytics and HR analytics have paved the way for more unique experiences and bigger and better opportunities for human capital and human resources professionals.
Analytics involves interpretation of patterns in big data that help to make better decisions and support improved performance. Application of advanced analytics in HR measures the impact, if any, of variables like HR metrics, hiring candidates and retention rate etc, on the overall business performance, improving its bottom line.
Traditionally, talent management was always a people-oriented department, with the main focus on people’s relationships, avoiding risks by making experienced decisions and being legally compliant. However, things are now getting more and more dramatic, and advanced analytics is at the root of it all. Advanced workforce analytics or as it is now popularly termed “people analytics” helps the HR to stay within the executive board by using a data-driven approach, and putting state-of-the-art fact based techniques into play. Owing to the characteristics of these new techniques, HR professionals have effectively recruited great leaders, managers, employees and even successfully retained them. In a way, human resources teams have managed to bring added value to the company’s profile.
It doesn’t come as a surprise that these days, leading organizations are making the most of people analytics and advanced HR analytics tools to successfully generate millions of rupees worth funds. Many companies across industries like healthcare, real estate, finance, manufacturing, consultancies etc, are strategically making use of HR analytics tools to improve engagement on the floor, increase productivity & performance metrics while maintaining a high rate at retention of talent.
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Take for instance, when it comes to employee retention, traditionally many companies have resorted to undertaking detailed and in-depth exit interviews, sometimes even offering a retention bonus in desperation. But with people analytics and more specifically predictive analytics techniques companies can now tackle the issue well before it occurs. Since these new tools take on a predictive approach as opposed to a reactive approach, companies can access a large amount of objective data and information which helps to nip the attrition rate in the bud.
The application of ‘people analytics’ in HR functions has created a ripple effect and caused a shift towards performance improvement. With analytics tools and techniques, the possibilities are endless! Talent management professionals can use technologically advanced tools like machine learning algorithms, and tap into various data sources to collect invaluable information that can help with better decision making at a developmental level. It can efficiently track metrics like average revenue generated per employee, number of offers and the time within which they were accepted, training expenses, efficiency rate, average turnover rate, human capital risks, and much more.
The resulting data collected from these metrics can then be used to gain insights into the workforce, identify specific areas that need attention and come up with necessary plans or hypotheses to maximize HR efficiency.
HR analytics can not only push better decision making, and achieve successful employee retention, but can also be used in other crucial HR functions like talent acquisition, diversification, performance management, training and coaching and behavioural economics right from top-level leaders to the lower hierarchy. The key is to know how to implement the power of people analytics in talent management and leverage the same to make substantial contributions to the organization’s bottom line.
References:
- “What is HR analytics,” April 29, 2019, hrtechnologist.com
- “Power to the new people analytics,” March 2015, Bruce Fecheyr-Lippens, Bill Schaninger, and Karen Tanner
