At a time when big data and IoT (Internet of Things) is becoming a mainstream strategy in various business functions, Human Resources is still struggling. According to the Deloitte study,
“86% organisations report no analytics capability in their HR functions, compared to 77% enterprises that make an efficient use of analytics in operations, 56% in marketing and 58% in sales.”
Innovative organisations like, Google, Sysco, Best Buy and others are increasingly adopting sophisticated approaches to analyse employee data to understand exactly how to warrant the highest, retention, engagement and productivity.
The great news is since 2013 about 57 percent of Human Resources teams improved their investment in analytics and measurement. Also, the enterprises that are in the lead are doubling their investment and improvements in their leadership development and recruiting capabilities. Hence, relishing 30% growth in stock prices than their peers.
Talent Analytics – why it be of importance?
Talent Analytics is an excellent resource to extract key insights which have an ability to link talent strategies directly to business goals. It has the potential to evaluate the contribution people make to business results across the board – from quality enhancement and accident decrease to customer service and sales.
To improve the retention, it is necessary for companies to take targeted action and to do so the highly data-driven model is a not only the right choice but the only option. It helps organisations to develop the effectiveness and targeting of their retention strategy.
Embrace the disruption
Successful talent analytics campaigns call for strong partnership between IT, business operations and HR, dedicated cross-functional teams and focused investment. It is imperative for Human Resources to accept this disruption and take a leadership role. It is an opportunity for organisations to pull together different parts of the enterprise to drive business results and solve problems.
A case study by Deloitte
An international pharmaceutical enterprise experiencing exceedingly competitive talent market in China comprehended that it had to condense the employee turnover to encounter its growth targets. As a part of their strategy, they go on board with predictive analytics efforts to improve the attrition rate, specifically among sales force.
They developed and implemented a model to deliver predictive insights on important sales roles for the organization using past three years data.
How it helped them?
It enabled the organization to recognise which variables were reliable predictors of turnover and retention. Henceforth, it led to the development of focused workforce retention strategy.
Talent Analytics Going Forward
For many companies, the change from data reporting to analytics is a leap into the unknown. Human Resources teams questions if they have understanding and skills to put this function together. In such regard, here are a few impending starting points.
1. Develop a community of practice
It is important for an organization to create a unified platform where naturally interested professionals can share best practices and experiences. Their overall action should be focused on improving visibility for fact-based decision making through data analytics.
2. Add skilled analysts to lead the team
There is a huge difference between having an analyst on your team and having a qualified analyst to lead the team. An experienced person with right skill sets will be better equipped in leading the data-driven team and will have a superior approach in convincing the C-suite.
3. Start experimenting to build capabilities
Select a business problem, onboard people from different functions and consider the type of data might support to solve the problem. Subsequently, brainstorm on data analysis techniques to devise the solution.
In one of the Josh Bersin report, he brilliantly mentioned that it could take 3 to 5 years to develop a robust talent analytics function and longer or same length of time to create a culture and mindset in which people make the decision not based on instincts but consider the data-driven approach.
Hence, it is critical for organisations to start laying the foundation for HR analytics program.
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