Talent Analytics in Human Resources: Why Does it Matter?

Posted by Maria Talley on Dec 17, 2015 10:39:00 PM
Maria Talley
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Talent analytics, or data about people and performance, are now required capabilities for mid-sized and large companies that seek to have a competitive advantage. According to recent studies, 14 percent of organizations that employ talent analytics outperformed the S&P companies on average by 30 percent during 2011-2013.


HR data alone is rarely sufficient for strategic business development. In an age of reporting (and reacting), talent, or people analytics, represents what the elite leaders are using to outperform the competition. By leveraging big data to optimize operational efficiencies on all levels of the enterprise, TA is a way to diagnose and solve a range of business problems.

Here is why we recommend using talent analytics in your organization:

  • HR Reporting Clarity

Talent Analytics is about staying several steps ahead of the curve and clarifying needs or identifying trends with available data. Where other companies fail, even when it comes to rigorous strategic analysis, is in their inability to predict the likelihood of problems arising, as well as in missing opportunities for growth because they are still stuck in a reactive operational reporting model.

  • Talent Acquisition Improvements

A Deloitte study shows that companies that employ TA are twice as likely to report improvements in their recruiting efforts as the companies that don’t utilize this model. Some of the areas of improvement can be using more effective recruiting sources, assessing the quality of hires and evaluating candidates to find the best matches and developing, recruiting and retaining quality leaders.

  • Better Planning and Performance

It can be challenging to plan through times of rapid growth and expansion, but not doing so can wreak havoc on a company’s internal resources and external reputation and capability. Sudden growth might require a complex mix of internal employees, contractors, vendors or contingency workers, or there might be a skills gap that needs to be addressed with urgency and care. Talent Analytics is a great tool to help assess a company’s ability to grow or handle major changes to processes, and identify critical areas of deficiency.

  • Improved Business Strategy

When companies understand what their teams are made of -- in human terms rather than simply job performance terms -- they will be better able to understand what drives people to succeed, as well as what motivates them to stay. In one case example with Harrah’s Entertainment, data analytics were used to help increase employee engagement through a wellness program. The use of analytics let the company see how its investment in employee health has a direct impact on improving the bottom line.

Investing in big-data can result in some big rewards. Talent Analytics represents a paradigm shift for many of the CEOs and business leaders today, but it doesn’t have to be confusing or scary. To the contrary, it’s a way to infuse human-centered data into intelligent decision-making so that every aspect of your business can benefit. 

If you would like to learn more about tracking your talent analytics, download our free guideTop 10 Recruiting Metrics to Improve Talent Acquisition.

download 10 metrics for talent acquisition guide


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Topics: talent analytics, human resources, hiring

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