Hiring The Right Talent Using HR Analytics
Lawrence Bossidy of GE once said, “I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.”
A truer statement hasn’t been made. With the right talent, a business can achieve anything—or almost anything. Although we live in an era that’s dominated by technology, to any organization looking to scale new heights and attain new levels of excellence, talented people still remain the most important and significant differentiators between mediocrity and success. Organizations are constantly thinking about how to attract and retain workers who can add value, foster innovation, up the ante on creativity, and push the envelope of the business world. These ‘movers and shakers’ have the tools and experience required to transform vision into reality.
Surveys, however, show that 65 percent of all global companies have trouble finding employees with the right skillsets, as they are ill-equipped to identify them. This is where HR analytics can help.
What is HR Analytics?
So what exactly is HR analytics? HR or Human Resource analytics comprises software that doesn’t just monitor and measure employee efficiency. It also assimilates, collates, and contrasts industry-wide trends with people-specific data across a range of parameters including recruitment, performance, quality of hire, turnover and demographics. If you’re wondering how any of that can actually help firms—here goes.
We know that human beings exhibit diverse, context-specific behavioral and psychological patterns. HR analytics allows companies to analyze the skills of existing high performers and build a template for future hires. Employing statistical techniques, analytics software can optimize companies’ job posting tactics, identify team players, and suss out the right candidate for the job. Analytics programs also use algorithms to calculate the cumulative cost of hiring a particular candidate, predict applicants’ performance-trajectories, and determine which employees are most likely to leave the organization.
How HR analytics can benefit a company
As a result, HR analytics can save companies time, money and labor. More than that, it ensures that businesses only hire the best candidates, and more importantly, ensures that they retain them. Surveys have found that by using HR analytics, companies have been able to improve their retention rates while lowering training costs. They are better able to tailor their training programs to suit individual requirements, thereby decreasing training time.
The end result? Greater efficiency in hiring, lower attrition rates, and a more engaged and motivated workforce—all factors that propel a company to success.
The ultimate aim of HR analytics is to give organizations the insights required to reach their goals quickly and effectively. The real challenge lies in identifying what data to capture, and how to use it to determine and recommend a course of action.
A note of caution
If you’re wondering whether HR analytics is a substitute for engaging directly with employees, the answer is “NO”. Though it does generate data-driven, organization-specific insights that facilitate strategic decision-making, there’s nothing to equal that extra something that human intuition can bring to the hiring process. That said, experience-driven insights coupled with analytics technology make for a potent combination. And though HR analytics is still in its infancy, companies would do well to take note of its tremendous potential.
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