HR and Analytics: The New Connect
Data and technology have made many things around us very interesting. And one such area is the Human Resources (HR) industry. Consider this – earlier HR was essentially maintaining and measuring employee data, recruiting talent, and tracking compliance policies. But with the rising trend of people analytics, HR can now interpret data, recognize trends, and uncover things business didn’t know.
What this means is that by intelligently analyzing data and contributing to decision-making, HR can play an active role in an organization. So instead of just responding to questions like how many people left the organization last year, HR can also tell why those employees left, is the trend upwards or downwards, and how it compares to the attrition rate in a similar industry.
A Deloitte Research Report says that adoption of people analytics is on the rise given that many organizations understand the advantages. Even the C-Suite is pushing their HR departments to develop analytical capabilities.
Use of people analytics in HR is viewed as a hot career opportunity by statisticians and analysts from other domains, and even young college graduates. Experts in people sciences are eager to consult and share ideas with companies that are new in this domain. Also, the analytics technology market is brimming with off-the-shelf products.
Despite this, many organizations are usually stuck when it comes to effectively deploying people analytics. Here are few things organizations can do to get headed in the right direction:
- Instead of getting absorbed in the ocean of data, engage with business leaders on the challenges they are facing, metrics they are accountable for, and what information could provide insights in helping them succeed. Aim for small initiatives for quick wins and bigger impact
- A successful people analytics requires three skills – HR, statistics and consulting. Enlist the support and leverage skills of other employees in the organization who are ready to join this exciting effort
MYB believes that HR has to make the transition from data extraction to data analytics. And organizations will have to support this endeavor to stay ahead of the competition.