How Measuring People Data Boosts Bottom Line Results
In the age of a data-driven world and workforce, HR is in a distinct position to leverage this company data and make sure that their business can remain competitive, innovative, and relevant.
Beyond just using this data for measuring rates of turnover, HR departments can now be tasked with using big data for evaluating business variables in a way that can increase revenue and identify opportunities or liabilities.
Using better metrics and reporting, organizations can create more immediate value that is both sustainable and that puts foundations in place for future growth. In the pursuit of such goals, detailed below are three categories in which this use of big data and analytics can help your business not only survive, but to thrive.
Strategic Recruitment, Hiring, and Retention
With a survey from Conference Board ranking human capital as the top challenge for global CEOs and those in leadership positions, this is, by far, what has the highest impact on profit and corporate revenues. With the vast number of applicants and potential hires being, at times, challenging to sift through, it can be a daunting task to find the best fits for your company. Luckily, big data’s strength lies in its future casting and predictive analysis.
Through the combined use of recruiting data and deep-learning algorithms, the candidates that are most likely to do well and have the highest positive impact on profit and workplace culture can be more easily identified. By having well-designed recruiting systems in place, a company can attract these top innovators and provide the tools and/or support needed to help them succeed in their jobs.
Data can now help HR quantify the impact of any new hires and see exactly how it relates to productivity and the bottom line of any business. The positive effects of these new hires will inevitably increase how a business can become faster and more adaptable to any changes in strategies or the market they are competing in.
To make sure to keep retention rates high for new recruits and current employees, predictive analytics can play a measurable role in aiding a company. For example, these analytics can measure and determine which employees are most at risk of leaving based on various key factors, or when mass retirements could occur.
Streamlining People Development and Management Problems
As HR is ultimately responsible for productive and successful employee relations, a company will find itself looking for new ways in which to maximize efficiency, increase speed of current workers, and find innovative paths to influence the outcomes of various projects while maintaining good employee communication, culture and teamwork. One of the ways in which analytics can be useful in this way is through an improvement in development and training processes. This of course saves time and creates a more productive environment.
Through the quantifiable use of numbers and data, managers can understand the positive effects of putting new programs, like for recruitment, into practice. Having numbers and hard data is a compelling argument in most cases, and managers become more likely to implement these findings.
Data can also be helpful when identifying the various unseen causes of people management problems within a company. Once identified, the true problems and causes of them can be addressed and solutions can be found quickly, saving time.
Connecting HR Data to Business Revenue and the End Results
Using data driven technologies, companies can reveal certain workplace factors that can promote organizational speed and innovation among employees. This would then decrease the amount of time it takes to finish important projects, allowing finished products to be put out to market or implemented faster.
When putting this new-found HR data into practice, it can allow the CEO and other business executives to pinpoint which HR programs are having the highest impacts for the company. This is good for several reasons; it can help more accurately distribute a HR budget and staff, and it can help to identify which programs or tools are NOT working.
When an HR department uses the proper analytics and metrics, they can more effectively share data and interact with all other business functions within a company. When transparency like this is leveraged properly, the needs and services that are required in other business functions is more visible. This can then allow HR to focus in and provide better support and action where needed.
To bring it full circle back to the importance of good recruitment and hiring, evaluating the percentage of improvement in new hire performance multiplied by the annual revenue per employee, a company can realize a significant and positive impact to their bottom line.
As businesses continue to grow and serial innovation becomes necessary, data driven HR is one of the most underutilized frontiers out there that must be taken advantage of. Once these analytic capabilities are adopted, it can help deliver higher rates of efficiency, strategic change, and give you the edge needed in order to achieve your goals.
Allowing HR to catch up with other departments who have long since adopted big data, HR can now measure the progress towards a business objective, be strategic about hiring and recruitment, and use this data to stay informed about specific workforce decisions and critical trends that will allow for better programs that will increase productivity and revenue.