Technology such as Big Data analytics opens new ways to shape the work, and how the people are doing the work. HR could have a stronger and more influential voice at the leadership table by using data available to them. Increasingly, the most forward - thinking and successful companies are turning to evident-based data to inform human capital decisions that optimize efficiency, effectiveness and strategic impact. Analytics can be a very powerful tool, however, most of HR organizations have friction to apply analytics for managing talent more effectively, why is it important to use HR analytics, and what are the big challenges?
Common language: Analytics gives HR the ability to speak the same language as business partners. How using the right data, metrics, and analysis can help you solve your people challenges in the area of employee benefits, and position HR as a valued contributor. It brings HR in line with the way most operationally-focused groups make decisions, demonstrate tangible value, and it gives HR the ability to speak the same language as business partners. Workforce Analytics solutions is already helping large companies in varying verticals to move beyond status quo questions (headcount, attrition, salary expense, revenue per employee) to insight and predictive analytics. As HR technology has matured, you have used it to reduce costs associated with transactional functions by automating them. This brings an extra benefit by collecting information, meaning you can then use business analytics to drive staffing decisions and full cycle of talent management.
Business driver: The people piece on the integrator end is what makes it possible to utilize these resources to facilitate more efficient staffing models. Information assets are not the issue. That is simply more rhetoric. Some thought the challenge of HR analytics is data accessibility or a lack of technology needed to generate it. But more often, the primary challenge is rapidly developing the competency to use the data in HR professionals who may not have needed it previously. Whether you look at HR or any other business function, there is a temptation to believe that lots of data is more important than meaningful data. So whilst data is important getting behind, the figures can be a strong business driver.
Culture of analytics: What works is having management who know how to build environments conducive to the growth and well-being of their people - and watch the motivation grow. Good information is always a good place to start. Then coupled with the personal touch, engagement, resolution, and development can follow. The company does not have to be profitable with all the perks. However, many organizations are holding back or being uncomfortable with applying technology in this way, it is important to consider how bridging this gap really goes hand in hand with attracting the right team members to integrate automation and analytics with other functions.
Size Matters: Does big data necessarily mean better? People say size doesn't matter, but when it comes to big data analytics, big is more often better, because we’re talking about how we can harness this asset, and the more data you have, the more information you derive from it. And that means you’re going to get more energy into the machinery and more precise outcomes. Whatever the topic is, the more data you can analyze, the better. But big data on its own is not necessarily better, it’s probably the reverse. The more data you have as a company, the more it costs you to move it and store it, and if it is not managed properly, it can become a liability.
Technology such as Big Data analytics opens new ways to shape the work, the people doing the work, support them through connection and collaboration, reward and recognize differently. It's the time for HR to leverage Big Data to play big.