By Stela Lupushor, Chief Reframer at Reframe.Work Inc.
People are at the heart of every organization, so building a strong business requires bringing in top talent and cultivating an exceptional workforce. Today, a growing number of tools make that possible. Among business leaders, 84 percent view people analytics—or the use of data to analyze, predict, and enhance performance—as important. The high value placed on workers has led more companies to invest in analytics technology that enables them to better interact with and support employees.
Yet to truly maximize the potential of people analytics, organizations need to consider upcoming changes and fluctuations in hiring processes, employee expectations, and worker demographics. Taking a careful look at trends in the workforce and how these will impact the future of work can help companies improve long-term business performance and make the right analytics investments.
Just as successful companies have become highly customer-focused—analyzing every aspect of the customer journey, from their daily behavior patterns to their purchasing decisions—organizations have the opportunity to become more employee-focused.
The employee journey begins before a worker is even aware of a particular organization. It continues as that person discovers the brand, applies to, gets hired, and then develops professionally while working there. This relationship can carry on even after the employee leaves. The individual may continue to purchase the company’s products or services, or encourage acquaintances or family members to work there.
Today, data can be collected at every point along the employee journey, providing an opportunity to use that information to make better-informed talent decisions. Organizations looking to reduce employee turnover could use data to discover patterns and detect warning signs indicating that a worker may leave. For instance, an employee could be compelled to leave if an individual has multiple managers over a short period, fails to meet with a supervisor for several months, or passes up a promotion. With tools that pick up these patterns and highlight cases of potential turnover, HR could intervene by developing more opportunities for worker advancement, ensuring frequent meetings with managers, and other measures that ultimately lower attrition risks.
By 2050, it’s estimated that the majority of countries will have more people living in urban areas than in rural regions. In addition to this shift toward city living, workers are increasingly moving to different regions and countries around the world. In the U.S. alone, 35.5 million Americans move locally, to another state, or across borders in any given year.
However, the mobility trend runs even deeper than location: Workers are increasingly searching for an opportunity to explore, whether it be the chance to experience a new environment or adapt to a different culture. This thirst for the unknown and quest for unique experiences means employees may not stay with organizations for decades, let alone years.
To address these trends, companies can apply people analytics to understand the cost/benefit of hiring workers who will stay for only a short period of time, as well as how best to use resources to manage and train them.
On average, 10,000 Americans turn 65 every day—a trend that is estimated to continue through 2030. People who are 65 years old or older are projected to make up nearly a quarter, or 23 percent, of the population by 2060, compared with just 15 percent in 2017. This aging population is driving a skills shortage, and businesses need to develop strategies to adapt.
With women making up nearly half of the total U.S. labor force in 2018, forward-thinking companies have the opportunity to create more flexible environments that align with the caregiving responsibilities that female workers often take on, both for young children and aging relatives. People analytics can guide organizations as they consider how part-time or contingent workers, freelancer communities, digital labor, and artificial intelligence fit into their overall workforce needs.
Taking the time to consider how the future will be different for workers is an important step in preparing your organization for the future. People analytics can provide the insight needed for this preparation, as well as execution of an ongoing relationship with tomorrow’s talent.
To learn more about how Oracle HCM Cloud helps HR leverage people analytics, visit https://www.oracle.com/applications/human-capital-management/.
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