Author: Divay Chadha, Co-founder, Growup Group
In today’s time of scattered employee demographics and remote workforce, managing human capital, and deriving relevant information about the workforce has become a complicated challenge for HR managers. HR is no more just an intuitive function, it has evolved as a data-driven and statistically evidence-based function.
People analytics is emerging as a domain of high interest in the modern corporate world. Also referred to as HR analytics or talent analytics, it is a goal-oriented and data-driven approach of deducing insights and conclusions on disparate processes, challenges, functions, and behaviors of people at work.
People analytics stresses on achieving sustained organizational development with the aid of technology like Big data, machine learning, Human Resource Information System (HRIS), Performance management system, and data visualization. People analytics can be considered as a much-awaited step in the development of strategic human resource management.
With the help of People analytics, an organization can find better applicants, make smarter hiring decisions, and increase employee performance and retention though it also helps to make people smarter, more strategic, and more informed talent decisions. Below are the 4 important steps which organizations can follow-
1. Gathering Relevant Data
Digging the data which is relevant for your business and core objectives is very crucial is a very crucial first step. If data does not add value to your cause then it is irrelevant and wastage of time and resources. Setting Key Performance Indicators (KPIs) is an effective way of achieving business goals from data strategically.
2. Selecting Suitable Analytics Tools
There are several options present in the tech market for analytics today. Multiple techniques and tools of data visualization, data transformation, and data mining provide a wide range of alternatives to HR managers. But choosing the most suitable tools which help in decision making is very crucial for obtaining cost optimization. Experimentation and exploration of these tools are used for this purpose at our organization.
3. Creating an HR Business Strategy
An effective business strategy can only be formulated when the insights and conclusions are backed by data and quantitative facts. The so established talent strategies must align with the organizational strategies and goals. People analytics with the help of KPIs ensures that the impacts and results of these strategies are measured regularly and effectively.
4. Maintaining Agility
Technological support that is available today is very fast-paced and efficient. The data-driven from People analytics have almost negligible room for error. This high-tech enabled analytics tool makes it possible for a business to obtain real-time and current data. This feature can prove crucial for the organization in maintaining agility in a not-so-stable business environment.
The fact that innovations are continually improving and developing is common. It is diverse because of People analytics focus on data processing technologies and data interpretation methods and techniques. Here is a list of trend in the workforce driven by analytics:
- Transformation of constant to live data: Gone are the days when data collection was a lengthy process and decisions were made based on historical data. People analytics has transformed decision making to more relevant and reliable according to the future needs of the organization by providing real-time data collection techniques.
- Transformation of HR operations: Analytics has completely revolutionized the process of recruitment, performance measurement, compensation, and growth monitoring of the workforce. These processes have become less time-consuming and more effective with the introduction of Artificial Intelligence (AI) in HR analytics.
- Transforming workforce experience: The employee feedback and responses are recorded as quantitative data with the help of people analytics. This quantitative information helps in deriving meaningful insights on the employee experience. The role of HR is transforming into organizations with these insights.
- Transformation of focus from individuals to teams/departments: The focus of HR managers that used to be primarily focussed on assessing performance drivers, absenteeism, etc. earlier has now been replaced with the assessments at broader levels. People analytics possess the ability to assess the workforce as teams in organizations.
The technological evolution of HR processes is the time of the hour for sustaining the ever-changing dynamism of the corporate world.
Having a technically skilled, updated, and upgraded HR team is a must for achieving organizational goals in the coming future. Strategic success is only attainable if your HR possesses high competencies and capabilities. Optimized use of people analytics is the path that can lead to a more satisfied, smarter, and competent workforce.
About the Author
Divay Chadha is the Co-founder of Growup Group. An alumnus of Delhi School of Economics, Divay has empowered 1000+ professionals by giving them experiential training on diverse skill-sets viz’ Personality development, Online Visibility, and Spiritual Awakening, helping
them get a better grasp of necessary skillsets.