HR Analytics have suddenly emerged as a vital compulsion for the recruitment industry. However, with the hype included it’s easy to lose sight of what’s really important – the right reasons ‘why HR analytics has become so important in HR’.
The ‘Why’
Increased attention over analytics is a result of both necessity and opportunity.
- The Necessity arises from the increasing supremacy of human capital management as a vital organizational core competence. Bygone are the days when ‘intangible assets’ accounted only 9% of the value creation, currently the percentage has grown above 65%. In a nutshell, market needs are changing.
- While Opportunity arises from increased availability of virtually accessible data related to the management and development of people. These data, when processed with the assistance of a powerful/accessible software application, can be transformed into valuable, actionable insights providing intelligence to businesses.
The ‘What’
Recruitment Analytics is an application with integrated analytical abilities that functions to process segregated virtual data and provide insights that help to improve the quality of decisions in order to improve individual plus organizational performance with regards to HR.
Since, HR analytics functions of statistical tools and analysis, it requires high-quality data, well-defined targets and talent analyst to function accurately. HR analytics provide information related to employee management, recruitment behavior, performance, workforce demographics and overall turnover. Descriptive HR data and Predictive insights, identify unique aspects of an organization’s work, learning and leadership environment and allow management to make better hiring decisions.
The ‘How’
The statistical technique being used in recruitment analytics runs the gamut of simple and complex data calculations. These calculations include finding an average value of a variable, multivariate regressions, factor analysis, simultaneous equation calculation and neural network analysis. These ongoing data comparisons allow users to make more advanced statistical searches. Often, the answer to the biggest problem depends on effective execution of basic statistic techniques. This is ‘How’ it all happens inside an analytics system.
The ‘When’
Today, analytics has become a go-to approach for leaders seeking accurate statistics or fact-based predictions to make better organizational decisions. In a nutshell, recruitment analytics affect every aspect of HR function starting from recruitment, onboarding, training, development, succession planning, retention, engagement, compensation and benefits management.
HR analytics is not for those tempted to use it just to ‘prove the value of their HR system’. Analytics is a serious business and data comparisons need authenticity as they are crucial for the organizational decision-making procedure. Any imbalance in these metrics can be hazardous for an individual and business credibility plus profitability.
A Word of Caution:
If well-designed and promptly executed, HR data analytic tool can help organizations establish a great mechanism for understanding and linking measures among people & businesses. The key performance indicators help management, identify how current HR policies, procedures drive business performance and also highlight the loopholes in existing HR model.
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