HR analytics is a topic which employers often choose to avoid or defer yet it is a valuable asset in talent management. According to Bersin by Deloitte, organisations with mature analytics capabilities are twice as likely to improve their recruiting success compared to those without. When it comes to HR analytics, HR isn’t engaging in the conversations it needs to have.
Here are a few starting points:-
HR analytics improves employee retention
Dale Carnegie’s Training Global Leadership Study 2016 reports that nearly half of all workers plan to leave their jobs next year, primarily due to poor management or a lack of trust between line managers and their teams. HR analytics helps to identify high risk employees within your organisation. For example, job hunting reportedly rises by 12% before a birthday. The data gathered during the hiring process, performance reviews and exit interviews also inform future employee retention strategies.
HR analytics enables HR to keep pace with rapid change
Businesses that do not move towards even a basic investment in technology will struggle to compete in the labour market, but it seems to be a discussion HR is not having. Approximately one third of businesses are not digitally enabled, do not have access to real-time information and lack confidence in their business-critical data, according to Advanced’s Trends Report for 2016. As UK digital adoption lags behind on the global stage, HR risks consigning itself to an administrative function.
HR analytics improves candidate selection
HR too often fails to anticipate hiring needs, adopting a reactive stance towards talent management. When a job opening arises, most hiring teams adhere to standard practice, posting automatically to job boards and assessing candidates against criteria such as social background and qualifications, influenced by unconscious bias. Modern HR software can incorporate a series of sophisticated assessments during candidate screening, including anonymised CVs, psychometric testing, video screening and gamification to evaluate qualified candidates and reduce the reliance on subjectivity. HR analytics provides insight into the success of existing hiring practices to facilitate this.
HR analytics helps HR to predict rather than report
HR has access to an overwhelming amount of data pulled from a variety of areas, including employee salaries, career development and training, length of employment and performance management information. Many organisations have only minimal capability to either retrieve or analyse this data, or begin to understand it. HR analytics brings it together, allowing HR to more accurately understand and predict future hiring needs. Equipped with reliable data, HR is able to make informed decisions and adjust its talent acquisition strategy, rather than simply report on historical hiring patterns.
HR analytics enables the creation of talent pools
Unfilled vacancies affect morale and productivity, increasing the pressure on hiring teams to recruit quickly, often increasing the risk of a bad hire. Analytics, through recruitment software, enables HR to create and nurture a talent pool to address workforce requirements. At the same time, it provides insight into candidate preferences through analysing their responses and engagement across online recruitment channels.
HR analytics increases HR’s credibility
SHRM’s Use of Workforce Analytics For Competitive Advantage outlines the benefits of using HR analytics to create a compelling story around your brand. HR must be both familiar and comfortable with HR analytics in order to present its findings both effectively and convincingly to business leaders. Captivating storytelling is one of six key competencies vital to a ‘superhero analytics’ team according to Morten Kamp. Strong data management skills, an ability to understand the business, visualising the results, psychological skills and excellent statistics and numbers skills are the remaining five.
Advorto’s recruitment software provides workflow and structure across the entire hiring process, offering a dynamic database of candidates and analytics. Used by some of the world’s leading organisations, it provides a straightforward first step into HR analytics and big data.
Start the conversation about HR analytics in your business. Contact Advorto today.