How can HR Analytics be used by organizations?
Let’s take a look at a few examples using common organizational issues:
1. Turnover
When employees quit, there is often no real understanding of why.
There may be collected reports or data on individual situations, but no way of knowing whether there is an overarching reason or trend for the turnover.
With turnover being costly in terms of lost time and profit, organizations need this insight to prevent turnover from becoming an on-going problem.
HR Analytics can:
- Collect and analyze past data on turnover to identify trends and patterns indicating why employees quit.
- Collect data on employee behavior, such as productivity and engagement, to better understand the status of current employees.
- Correlate both types of data to understand the factors that lead to turnover.
- Help create a predictive model to better track and flag employees who may fall into the identified pattern associated with employees that have quit.
- Develop strategies and make decisions that will improve the work environment and engagement levels.
- Identify patterns of employee engagement, employee satisfaction and performance.
Organizations are seeking candidates that not only have the right skills, but also the right attributes that match with the organization’s work culture and performance needs.
Sifting through hundreds or thousands of resumes and basing a recruitment decision on basic information is limiting, more so when potential candidates can be overlooked. For example, one company may discover that creativity is a better indicator of success than related work experience.
HR Analytics can:
- Enable fast, automated collection of candidate data from multiple sources.
- Gain deep insight into candidates by considering extensive variables, like developmental opportunities and cultural fit.
- Identify candidates with attributes that are comparable to the top-performing employees in the organization.
- Avoid habitual bias and ensure equal opportunity for all candidates; with a data-driven approach to recruiting, the viewpoint and opinion of one person can no longer impact the consideration of applicants.
- Provide metrics on how long it takes to hire for specific roles within the organization, enabling departments to be more prepared and informed when the need to hire arises.
- Provide historical data pertaining to periods of over-hiring and under-hiring, enabling organizations to develop better long-term hiring plans.