People Analytics
In a previous post I mentioned the need to move to data
driven recruiting. While this is
absolutely true, all of our HR functions should be moving to a data driven
approach. In fact, there is an entire
trend and movement within the industry which has been named People
Analytics. At first the name feels
almost insulting one might think, people are more than a data point, haven’t we
been pushing organizations to value their people and not treat them like a
number? The answer is yes, and people
analytics helps us do that. As Deloitte’s
2017
Global Human Capital Trends’ people analytics section points out companies
are starting to heavily use data for workforce planning, talent management and
operational improvement.
People analytics is being applied to a wide variety of
business problems including recruiting, performance management, workforce
planning, compensation, and retention (and all that goes with it such as
training, engagement, and benefits).
Recruiting is the highest area using analytics but the others are
gaining as well. There are many benefits
to using analytics when it comes to each of these areas, which I will discuss
further in later posts.
Over the coming years we will see a huge shift to relying
heavily on people analytics for assisting with business decisions. Right now 71% of companies see people
analytics as a high priority for their organizations. Unfortunately, only 8% of companies say they
have usable data. There is a long way to
go but the technology has come a long way.
There are now HR software that does predictive analytics for people
data. According to Deloitte “Predictive
analytics tools from many HR technology vendors have arrived, making it
possible to analyze data regarding recruitment, performance, employee mobility,
and other factors. Executives now have access to a seemingly endless combination
of metrics to help them understand, at a far deeper level, what drives results.”
Stay tuned over the coming weeks as I take a deeper dive
into more areas related to people and talent analytics.
Great points!
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