Traditionally, Human Resource (HR) has been considered a non-innovative and paper-intensive business function. The HR function involves salary decisions, recruitment of personnel, and team-building exercises. However, the changing face of the industry demands rapid incorporation of technology even in the field of HR.
Talent analytics correlates data related to businesses as well as people, which help you, establish important relations in the future.
A key benefit of talent analytics is that it is an all-conclusive solution to study the impact of HR processes on the entire organization.
It establishes a cause-and-effect relationship between business outcomes and HR processes, thus creating information-based strategies.
The core functions of an HR manager include talent acquisition, process optimization, payroll management, and management of the entire workforce. Talent analytics helps to identify key problem areas surrounding these functions.
It uses an analytical workflow that guides managers to record responses, gain relevant insights from information, take smart decisions, which thus results in proper utilization of resources to devise an effective business strategy.
Key Issues Addressed By Big Data
Big data can be used for HR in the form of talent analytics, predictive analytics, human capital analytics, and HR analytics.
Talent analytics not only deals with raw data; insights from the collected data provide answers to the queries relevant to your employees. While big data analytics may extract data based on past information, the main function is to highlight current user behavior and predict future behavior.
Organizations are able to move past bias and discrimination because talent analytics answers the following questions:
Variables influencing compensation structure
Due to the absence of in-memory technology, the entire HR data was stored on different database locations. Retrieval of any piece of information was a time-consuming process because data from multiple locations were required to be assessed, which could even take several weeks.
Talent analytics has in-built memory systems that quicken the overall process; faster, powerful and inexpensive memory chips are embedded in a server’s memory instead of the database. Thus, complex data can be analyzed and manipulated to derive real-time solutions.
For instance, performance management becomes more efficient with the help of talent analytics. The HR manager can browse through a 20-year history of bonuses in relation to the number of years worked, overall department revenue, and revenue based on location, gender and other demographics. In this way, you will be able to identify patterns of bias thus prompting you to develop bonus structures based on accurate data.
Control turnover rate
Employee retention is one of the major problems modern HR professionals are facing now. Enterprises can now use predictive analytics to determine future behavior of employees and identify the risk of high attrition, well in advance. Recruitment is a different thing, but if your workforce has a high attrition rate, then it does not contribute to diversity in the workforce. Big data and predictive analytics will help you understand the level of employee satisfaction; thus you can utilize the information to develop initiatives of improving the work experience for such candidates.
Improving Work Culture
Data analytics will help you identify core values and behavioral traits of employees. You can utilize algorithms for compiling, processing, and comparing basic values, employee base diversity, and behavioral compatibility to predict strength and potential of interpersonal relationships between the employer and the employees. Past experience and credentials are minor elements of the hiring process.
Address employee issues effectively
Talent analytics perhaps has created maximum impact on presenting visual data easily that can help you understand how an issue can influence the business decisions. Data is available in the form of graphics and statistical reports which are quite comprehensible for business leaders; they can understand the major issues present in the organization and act accordingly.
For instance, talent analytics may reveal following insights:
- Employees from certain schools sell more
- Short commutes help employees receive higher raises, or
- Younger users utilize corporate chat, or
- Different office locations work longer hours, or
- Male employees working for longer hours shop online when at work.
Big data has a huge potential to increase the effectiveness and efficiency of HR managers. However, data alone cannot resolve all problems. You need to ask the right questions.
Applying talent analytics to specific areas yields impressive results. For example, a communications company wants to understand factors of employee absenteeism at call centers in order to improve overall productivity of the call center. A hypothesis can be that major cause can be commute for an employee from home to office. A major factor is the family obligations of the employee that include caring for children or aging parents.
Knowledge about real causes of employee dissatisfaction will help enterprises retain good talents and control turnover rate.
Technological innovations driving future HR trends
Virtual and augmented reality
Virtual reality is not a new concept in the world of technology. However, consumer applications are not implementing this technology very effectively. But, the good thing is that virtual and augmented reality is finding a way to improve workplace environment. Take the example of Microsoft Hololens headset, a technology that is set to become a popular tool to be used by HR professionals in the future.
This tool serves the primary objective of disrupting employee productivity and talent management. Virtual reality will soon be utilized in enterprise training in which employees will use the technology for off-site projects as well as corporate trainings.
Additionally, enterprises looking to enhance on-the-job trainings will rely on this technology in its normal course of events, when digital transformation will supersede the physical reality. In addition, enterprises can transform onboarding processes and trainings in industrial environments by adding virtual guidelines of using machinery, tools, etc. that will help employees engage better with the work environment.
Furthermore, in industries looking to enhance tasks on the job, this will become the new normal, as digital information will be superimposed on the physical reality. Onboarding and training in industrial environments can be transformed by adding virtual instructions on top of machinery and tools, as employees engage with the environment.
Advanced Machine Learning
Machine learning refers to automated data analysis using algorithms that create analytical models automatically. With the help of these algorithms, machine learning programs extract meaningful data from different datasets and identify insights without explicit instructions of programming to find answers. Machines not only collect information from corporate environments, but also develop learning models.
This technology helps improve efficiency of initial analysis, allowing users to acquire higher level results and focus more on complex analysis.
Applications of machine learning in HR mainly focus on predictive analysis and talent analytics, mostly used for recruitment process.
Improvement in Performance Reviews
- Focus on collaboration: Talent analytics allows managers collaborate with employees during performance reviews. 360-degree feedback process helps in delivering an accurate picture of the employee’s contribution in the growth of the entire organization. Employers utilizing technology can gauge real-time performance, provide continuous learning, schedule meetings, and improve communication across the entire organization.
- Improve business performance: Performance reviews are complicated when you do not have a proper HR system in place. For instance, Weekdone helps managers monitor employees’ goals, challenges, and accomplishments in a unified solution. The app sends an email to the manager including weekly reports to help them understand real-time performance of employees.
- Constructive use of negative feedback: Talent analytics shows how employees react to negative feedback from the employer. It helps employers explore ways to convert negative feedback into constructive ideas. Employers can mentor employees and give valuable feedback that will help them grow in the organization and succeed.
For instance, PerformYard helps employers collect, document, and announce performance reviews as well as highlight positive interactions during these reviews. It also improves communication across the entire organization and recognizes employees who have exceeded employer’s expectations.
- Open communication: Improving performance reviews, talent analytics help in building transparent communication between an employee and the employer. Using technology, employers are able to communicate their objectives and goals to the employees that enhance a clear vision of what is expected from the employees and increases visibility.
Employees learn how they must perform in order to achieve the organizational goals and objectives. A tool, Trakstar builds transparency in communication and keeps employees informed about business objectives through email reminders.
- Real-time feedback: Providing real-time feedback is crucial for enterprises; it keeps employees informed about their performance and they are able to make changes accordingly. Employees can reach maximum potential provided they are receiving regular feedback.
If you are an HR manager, you must utilize talent analytics to empower your HR functions. Data analytics is emerging as a popular trend in innovating best practices for the HR professionals. It helps in addressing business as well as talent needs like engagement, leadership, training, and recruitment. Then, why only few enterprises are actively using data analytics capabilities for resolving HR problems? Enterprises using excellent talent analytics tools are positioned to outperform the peers and emerge as an industry leader in the coming future. Are you ready?