HR, as a function is going through an unprecedented change. It is not very uncommon to see many organisations use metrics in HR to influence how they recruit, engage, develop, retain, and compensate employees. With HR Analytics taking over critical HR decisions, here are some of the key variables at play that is accelerating the use of HR Analytics
#1. Decision-making is changing. The function which was once guided by instinct and intuition is now beginning to use data and algorithms to drive business decisions.
#2. The very concept of ‘Workplace’ and ‘Workforce’ has changed over the last nine months. ‘Flexibility’ is going to be the key ingredient for business success. With Gig becoming over half the pie of the total workforce, will act as a forced multiplier towards changing HR strategies.
#3. As per the IBM Global CEO study, 71% of the CEOs indicate Human Capital as the most significant factor contributing to sustainable economic value. If HR strategy is going to decide the future Business Strategy, Analytics is not going to be an optional but mandatory skill required by HR Professions.
#4. Like consumer marketing, sales, distribution, and finance; HR will have to look at Analytics as a process instead of a project. It’s not that companies are not keen, they are. Deloitte found that 35 percent of surveyed companies said they were actively developing data analysis capabilities for HR. Deloitte’s report notes, “77 percent of executives now rate people analytics as a key priority. The same report found that 44 percent of surveyed companies use workforce data to predict business performance.
#5. Need for Analytical Skills in HR- As per PwC Annual Global CEO Survey, an 80% gap is reported between the current and desired level of Information in the HR function. With so much data being available now, the key issue is to find out what is the relevant and right way to preserve it for future processing, along with how to use it for maximum ROI. The hardest part of people analytics is executing the changes suggested by the analytical models, which require HR analytics, Domain Knowledge, and change management practices. This is where trained HR professionals come in.
Due to the factor mentioned above, it is not a question if but when HR Analytics will be at the center of all HR and Business-related decisions. This will also change the current role of HR in many ways. Here are some of the key ones,
Talent Acquisition will move more towards evidence-based recruiting decisions. Organisations like Walmart, Nissan, and Google are already finding exciting new recruitment channels for talent discovery with the help of Analytics
Measure, Driving, and Enhancing performance
Culture of Annual Appraisals will be over in the next few years. With more ‘work from anywhere’ concepts and millennials’ preference for immediate and direct feedback, HR Analytics will be driving better Performance Evaluation Processes. Organisations like Mphasis are already doing some great work in this area.
Safety and Wellbeing
UPS and a few other Logistics companies have done fantastic work with the help of analytics to reduce the working hours of their delivery persons and ensure they spend more time with their families. With the use of analytics and AI, these companies are making logistics more human.
Engaging and motivating staff
Organisations like IBM are using sentiment analysis to find the best ways to engage and provide customer grade experience to their workforce.
HR Analytics is also playing a key role in Making learning and development more effective.
HR Analytics is now increasingly used for Treads Spotting as well as addressing some of the emotional HR issues like Bias by Separating Fact from Fiction.
Author / Educator – Rahul Sethi, Founder – Pro Touch