Finding talented employees is only the beginning of the HR puzzle these days as organizations are adapting to rapid change, trying to improve recruiting and retention, and understanding better the business implications of these decisions.
As tech-savvy job seekers continue to enter the workforce, it is no wonder that many top-performing organizations are finding success by adopting an analytics strategy when it comes to human capital management.
Nevertheless, how can managers in human resources, finance, and general hiring offices avoid the "gut instinct" they have relied on until now and boldly move into a state where augmented analytics keeps the company running smoothly?
According to Deloitte Consulting LLP (Deloitte), during a Webcast titled Real-Time Talent Insights: Driving Next Generation Workforce Analytics, it is important to consider the nature of the work itself. ”There is a new set of age groups joining our workforce, and they are used to working on the internet. They have grown accustomed to working remotely. And they are creating opportunities for HR to use data analytics in their hiring and employment strategies."
Based on a 2018 Oracle-sponsored study titled HR Moves Boldly into Advanced Analytics with the Help of Finance, several factors determine how well a human resources department can thrive and survive rapid change.
An HR issue holding many companies back is attrition or workforce turnover. Deloitte's study of organizations with at least 2,000 employees in highly skilled positions noted that the total cost of losing an employee ranges from tens of thousands of dollars to as much as twice that employee’s annual salary. Mid-sized companies may find it even harder to replace key positions, spending up to $34 million annually. Deloitte estimates that companies can save as much as $7 million if they are able to retain even just 20 percent of employees who are looking to leave. Advanced analytics capabilities applied to areas like recruiting, turnover, job performance and location can go a long way towards helping companies retain quality workers.
"We are encouraging HR teams to use evidence-based decision making, which will have more positive outcomes," Deloitte says.
Among the areas of opportunity for data analytics in HR, Deloitte notes six:
The rise in cloud-based, team-centric performance management systems that connect to HRMS or ERP systems is a great opportunity for business analytics platforms. The recent switch out of old HR software to cloud-based platforms is also an opportunity for companies to embed augmented analytics into their management systems.
"AI, robotics, and automation are all very big trends in the human resources area; and to be successful, you need that data," Deloitte says. "Bringing together that people data and combining it with your ERP systems and your finance data will be very important to raising your company to the next level."
Recruitment efforts are ripe for data analytics inclusion as companies shift to understanding their employee prospects instead of simply tracking applications. Mobile app use is also helping inspire leading companies to adopt data analytics in their HR processes.
Deloitte recommends "Daily tasks for employees that help them onboard faster or develop their skillsets.” Companies can monitor and measure these tasks with a simple mobile application. “Being able to put into place those toolsets for engagement is an important part of moving forward."