Analytics tools provide the opportunity for organizations to dive deeper into data than ever before. But HR analytics is relatively new territory for many companies, some of whom may be wondering whether the benefits are worth the cost. To gain a better understanding of the present state of HR data analytics, let’s examine some trends.
There’s a Learning Curve
The purpose of HR analytics is to transform data into actionable insights, but that also presents a challenge. In fact, Deloitte’s Global Human Capital Trends study found that only 8% of organizations surveyed report that they have usable data and only 9% have a good understanding of which talent dimensions actually drive performance.Only 8% of organizations surveyed report that they have usable people data. Click To Tweet
While those numbers may be daunting, they simply highlight the need for organizations to find the right analytics platform. Tools should be intuitive and user-friendly—they shouldn’t require extensive training or a data science team to conduct analysis. The quicker HR leaders can obtain usable data and take action, the quicker that analytics software can deliver a return on investment.
The Time is Now for Continuous Performance Management
Your people are your most valuable resource, and real-time performance management can help you unlock their true value. Ongoing coaching, peer-to-peer feedback, goal management, engagement surveys, and consistent check-ins can all boost performance, whether or not your company decides to do away with annual reviews or employee ratings.
People analytics is one more piece in the performance management pie. You can get a quick snapshot of engagement scores, track employee engagement by office location, see how employees stack up against their peers, and more. This information can help leaders identify top performers, as well as those who may need additional coaching and training.
Employees provide data from the moment of first contact during recruitment through the time they leave a company. Harnessing this data will help HR become a cost-effective, innovative partner within the organization.People analytics is one more piece in the performance management pie. Click To Tweet
HR Still Requires a Human Touch
Machine learning and artificial intelligence are becoming more popular every day, but they can never truly replace the human interactions between HR professionals and employees/prospective hires. While analytics can identify the strongest candidates for interviews, it’s ultimately up to the humans in human resources to decide whether someone is the right culture fit.
Analytics Aren’t Going Anywhere
A global IBM study found that 71% of CEOs identified human capital as a key competitive advantage. And in a 2017 Harvard Business Review survey of executives, 15% said they use “predictive analysis based on HR data and data from other sources within or outside the organization”. But that number is expected to jump to 48% in the next two years.
The time is now to integrate analytics into HR processes. The longer companies wait, the more they risk losing their competitive advantage.
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