HR Analytics
For a century, HR has included an analytical bent, but
with the rise of big data, HR is rapidly evolving into a
data-driven function that offers significant new opportu-nities
to drive business results. This latest trend in HR is,
strictly speaking, not really a trend at all, but likely a fundamental,
permanent change in how HR professionals will work, add value
and manage relationships with other business functions.
Yet new research shows that many companies are behind
the curve when it comes to deploying big data to improve HR
results.
According to the 2014 Deloitte Global Human Capital Trends
Report, 86 per cent of companies report no analytics capabilities in
the HR function, and 67 per cent rate themselves as weak when it
comes to using HR data to predict workforce performance and im-provement.
Fewer than one in 10 companies say they have “strong”
analytics capabilities. By contrast, 81 per cent of companies use
analytics in finance and 77 per cent in operations, according to a
2013 study.
The good news is that 57 per cent of HR teams increased their
investments in measurement and analytics last year. Companies
technology
that are leading the way in talent analytics are already reaping the
benefits, showing strong signs of improvement in recruiting, tri-pling
their leadership development capabilities and enjoying 30
per cent higher stock prices than their peers.
FROM ANALYSIS TO PREDICTION
Talent analytics combines workforce data with business data to
make better business decisions about people. Critical questions
– such as whom to hire, how to manage people and what drives
performance, retention and engagement – can now be answered
with the assistance of data, not just opinion.
A focus on analytics enables HR to shift from simply report-ing
and analyzing data to enabling the business to make informed
talent decisions, conduct advanced workforce planning and – the
final step – using data to help predict workforce performance and
improvement.
The push toward greater capabilities in analytics is a critical part
of re-skilling HR. This transformation from people administra-tion
to people performance may redefine HR’s value to all areas of
the business, from the C-suite on down.
MOVING FROM TALK TO ACTION
By Jason Geller
Bloom Design /Shutterstock
HRPATODAY.CA ❚ SEPTEMBER 2014 ❚ 31
