Why, How and When HR Analytics can Improve Companies Performance

77% of executives now rate People Analytics as a key priority        

A global report on human capital trends by Deloitte shows HR plays a crucial role in business outcomes, and utilizing data provides a key advantage in terms of decision-making. As Deloitte’s Global Human Capital Trends 2016 report notes, 77 percent of executives now rate People Analytics as a key priority.

In response companies are building people analytics teams, rapidly replacing legacy systems, and combining separate analytics groups within HR into one strategic function. The same report found that 44 percent of surveyed companies use workforce data to predict business performance.

How HR Analytics Are Changing Business

Though analytics won’t solve every HR challenge, they can provide an understanding of business functions and help trained HR professionals develop plans that optimize talent investments while effectively monitoring recruiting, development, engagement, productivity, accountability, retention and many other workplace initiatives notes people analytics expert Peero .

The Deloitte report notes that modern talent analytics combine data from HR and other business functions to address challenges related to:

• Selecting high-performing job applicants
• Identifying characteristics of high-performing sales and service teams
• Analyzing engagement and culture
• Identifying high-value career paths and leadership candidates

Applying HR Analytics in the Workplace

Turnover

Utilizing data enables HR teams to predict the risk of turnover by function, location, and position. In addition, trained analytics professionals can use HR analytics as a method of “modeling the scenarios in advance to reduce the losses.”

Retention

HR analytics can identify where the highest risk of turnover is, along with which individual employees are at risk.

Risks

Analyzing data can aid in building profiles concerning “which candidates are at risk for leaving prematurely and when”?

Talent Management

In terms of new recruits, HR analytics can identify which new hires will be high performers. This information helps determine “if they should be shifted into fast-track programs.”

Predictions

Among the most valuable applications of HR analytics is modeling the changes that may be in the company’s future. HR teams can predictively assume certain events in near or further future.