Why Human Resources Should Embrace Data Analytics

Posted by Steve Carter on May 12, 2016 2:44:00 PM
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Human resources is a numbers game. The need for analyzing employee performance is pushing executives to employ digital data analysis for multiple aspects of management. According to HR guru, Josh Bersin of Deloitte, digital innovations in the HR industry will replace outdated technology.



The Chartered Institute of Professional Development (CIPD) reports in its biannual HR Outlook that 92 percent of their HR respondents indicate that they are currently using HR analytics, with about 75 percent saying that this enables them to boost their strategic contributions.

Here are a few reasons why HR professionals have been embracing data-driven approach to employee management decisions:

The Usability

Decades of history tell of the troubled relationship between HR and technology. Often the learning curve of the first-generation user made it difficult to justify the costs of a new HR tech.  Many HR experts felt new software was undermining people skills.

Thanks to new cloud-based HCM technology, there has been a more enthusiastic reception. According to the same study, 44 percent of 650 polled organizations saying they have moved their HR’s core functions to the cloud while another 30 percent intends to make the move within the next three years.

Analytics Allow Achieving Strategic Objectives

Advanced technology gives HR departments new predictive capabilities, enabling them to make smarter talent management decisions. You now have the ability to mine data for actionable decisions that lead to improvements not only in your HR department but also in the entire organization.

While many companies have been striving to make smart data driven decisions in the past, sorting and analyzing analytics available in the outdated and often manual systems has been a daunting task. Today, thanks to easy-to-use dashboards and menus, executives are able to see the outcomes of their department’s work in a more meaningful and user-friendly way. Valuable insights can be found in employee performance reviews, turnovers, staffing levels and other internal sources.

Capability for Synthesizing Information

With better analytics, you can put Big Data to good use. Several questions can be answered with the data that is provided, and while they may not seem out of the ordinary, when the numbers are put together, they can play a significant role in your company’s overall operations.

Crucial questions may include:

  •    How can we calculate productivity rate of our employees?
  •    Why are some leaders successful and others are not?
  •    Why can one salesperson outperform others?
  •    What are the outcomes of the learning programs?

Forecasting Value

Workforce analytics can help prevent turnover catastrophes and create action plans, so you can focus on addressing the potential talent shortage and get the right kinds of people to fill open positions.

With analytics, you can see what works and what doesn’t as well as which plan of action you should take. When you are serious about achieving goals and keeping your business on the right track, consider putting analytics to work in your HR department.

Having access to data and information will help you run your business more efficiently and keep the best team of employees possible. There is no doubt that digital analytics is the answer to many concerns HR departments face in today’s fast-paced and competitive marketplace.


Topics: human resources, big data software, data analytics in hr

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