5 reasons HR is embracing people analytics
HR professionals are now much better placed to prepare for the future of recruitment using latest software and people analytics tools.
Not long ago, the process of hiring new staff seemed more straight forward, if not quite a perfect science. The available talent pool was smaller but the general lack of information on the background and skills of job applicants likely affected the overall accuracy of hiring decisions. Those responsible for job placements allowed more time to get to know individual candidates as part of their attempt to get the right people in the right roles.
Massive increases in computing power, the development of specialised recruitment software, and the success of online career websites like LinkedIn, Monster and Seek have all contributed to the rise of people analytics as an important new function of HR.
What is people analytics?
People analytics is a domain within big data that is concerned with analysing information about individuals, which can often be quite extensive given that most of us now have a huge digital footprint. Through such analysis, hiring and recruitment professionals are more empowered to make evidence-based decisions regarding which individuals are better suited for a particular job.
Analytics tools are more objective than the usual intuition techniques used in HR. They offer a powerful means of predicting which candidates are more likely to do well in the organisation, and also be used to determine which existing employees are a flight risk or need further learning and development.
“The power of people analytics is in its ability to challenge conventional wisdom, influence behaviour, enable talent and business leaders to make and execute smarter and more strategic workforce decisions, and ultimately impact business outcomes,” said Jean Paul Isson, author of People Analytics in the Era of Big Data.
While some may be worried about the potential threat to privacy posed by people analytic systems, those who support the concept claim organisations will use the data in a composite way.
“This helps us better understand what makes employees happy overall,” said Isson.
Organisations are increasingly adopting people analytics.
Why has it become so popular?
The 2016 Deloitte Global Human Capital Trends survey found that organisations are increasingly adopting people analytics as a way to optimise their hiring process and keep their retention rates high. The survey showed that a high proportion of HR professionals (82 per cent) and business leaders (69 per cent) are convinced of its value to their operations.
So what is driving strong uptake of people analytics among HR professionals? The Deloitte report suggested five main reasons:
1. Many HR departments are replacing their systems
Almost 40 per cent of organisations worldwide are replacing or planning to replace their HR systems within the next two years. The migration to more integrated cloud-based systems will allow HR professionals to crunch data like never before.
2. Organisations want to get involved – it is cutting edge
Data analytics is still seen as new and exciting. Everyone wants a part of it. Data science graduates and specialists are hot property and, along with other analysts, statisticians and psychologists, are coming into the HR profession in increasing numbers.
3. Vendors have begun to offer useful analytics services
Some talent management providers and other vendors involved in enterprise resource planning are providing clients with useful and repeatable analytics solutions. Overall, 42 percent of HR or business leaders rated the supplementary data and analytics capabilities provided by these sources as good or very good.
4. There is an abundance of expertise in the market
Large organisations have the option of consulting with data analytics experts, of which there are a large number available. Big data pioneers and early adopters are available to consult and share ideas with firms who are just finding their feet with the new tools.
5. Analytics is getting plenty of publicity
Big data and data analytics have been hot topics in the technology and business news media for some time now and there is no sign of such publicity abating. Well-informed CEOs and other senior level managers will have read about the merits of adopting people analytics and many will have raised the idea of building this capability within the HR departments of their organisations.
Globally, HR professionals are embracing these solutions.
Ride the wave
People analytics, along with a comprehensive suite of recruitment software, can help companies make the most out of their hiring process by identifying candidates who are more likely to succeed and stay in the business long term. Globally, HR professionals are embracing these solutions and incorporating them into their systems.
Please contact us today for further information about advanced software tools that can help streamline your hiring process. In FastTrack360, we offer a cloud-based recruitment software tool that provides a seamless talent management experience like no other.