Four For Friday: Why It’s Time To Start Embracing Analytics in HR
Every Friday, The DDR shines a light on the best data-centric articles and resources from across the internet, social media, and industry.
Why should business and HR leaders adopt a data-driven approach? It’s a pretty common question these days and, luckily, there are plenty are examples and reasons why embracing analytics can be a big win for organizations. Not doing so is costing companies more and more, and allowing early adopters to gain an important competitive advantage. The (many) reasons why HR leaders should embrace analytics and data are explored more in this week’s Four For Friday.
Recruit Smarter: Embracing Data Analytics (Human Talent Network)
“‘Big Data’ is no longer a buzzword, but an important foundation of almost all industries, with organizations across a host of different sectors realizing the value of gathering, analyzing and utilizing data to progress business.” Author Guillaume Noirtin explains that while recruiting traditionally has been reliant on gut instinct, we are starting to see a shift to a more strategic approach thanks to HR analytics. He provides the following three ways that companies will be able to realize the true benefits of data analytics in HR:
- A clear understanding of how HR aligns with business objectives is essential – so decisions can be made in-line with the relevant metrics.
- A systematic approach must be taken, regardless of what metrics are employed – clients must ask why measure it, what value it provides and how much emphasis should be placed on the results.
- Creating a single integrated information system is key – data should exist within an online dashboard, presented in a way that is meaningful for decision making.
Why Corporate Leadership Should Care About Talent Analytics (LinkedIn Pulse)
David Barton, Head of Analytics Channel at Innovation Enterprise, explains that as a result of the power shift from employer to employee due to the skills gap, recruiting is more important than ever for HR. Since organizations are investing more money than ever into their talent (40% of their total revenue), hiring the wrong people is extremely costly. To avoid these costly mistakes, more and more companies are looking to start talent analytics programs in their HR departments.
Predicting the Future with HR Analytics (Human Resources IQ)
Brittany Hink says, “Without analytics, corporations could face an increase in skills gaps throughout the entire company, less engaged employees, a lack of internal development, along with many other challenges.” What are some examples and areas where HR can use data and analytics to better predict future outcomes?
- Talent Management
- Recruiting & Retaining
- Learning & Development
- Shared Services
Learn more about each of these examples as well some challenges HR professionals face with data and analytics in Brittany’s post on Human Resources IQ.
A recent MIT and IBM survey found that companies with high levels of HR analytics had:
- 8% higher sales growth
- 24% higher net operating income
- 58% higher sales per employee
However, many organizations are still shying away from adopting analytics in HR. The article provides a few challenges that exist for HR analytics adoption:
- The attitude towards HR when perceived as a support function rather than one able to drive business forward
- Finding a quantifiable business case to start the journey towards data-driven HR
- A lack of analytic skills in the HR team
This post also provides four helpful steps to successfully adopt HR analytics:
- Start with the business
- Think big – start small
- Start now
- Grow incrementally
Check out this post by Andrea Capodicasa on the Capgemini blog for more details about each challenge and adoption steps.
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