The global market condition fraught with imbalances has led to careful spending habits among organisations. With a chunk of a company’s cost allocated to human resource, the HR departments across organisations are embracing analytics to make better decisions. As per a report published by Research firm Gallup, Inc. “there are 22 million actively disengaged employees costing the economy as much as $350 billion per year in lost productivity”. No wonder recruiters are resorting to modern technology such as big data analysis and predictive analysis to increase their ROI on talents.
Moreover, with Gen Z beginning to fill up vacancies a few years down the line, there will be more diversity in workplaces. HRs will therefore have to realign their measurement parameters to ensure better decisions and drive resource productivity. So, here’s a look at some of the areas in which organisations can benefit by investing in HR analytics.
Embracing cultural changes
Change is at the root of all sustenance and holds true for organisations as well. A study conducted by TINY Pulse – an employee engagement firm, revealed that "employees who give their work culture low marks are nearly 15% more likely to think about a new job than their counterparts."The changing trends indicated by analytics should be at the core to build a strong workplace culture. A lot of companies fail to attract the right talent simply because of their rigid cultures. This is one of the several crucial indications that can be found using analytics. The practise of embracing change is not as easy as it is to figure it out from advanced technology such as big data analysis and HR analytics. Hence, this initiative should be taken by the leaders.
"Employees who give their work culture low marks are nearly 15% more likely to think about a new job than their counterparts."
- A study by TINY Pulse
Effective training and better hiring
Organisations incur a hefty cost to train and re-train their employees. However, the training that is imparted is often not customised as per the exact need of an employer. Harvard Business School Professor Michael Beer in a conversation with Forbes revealed that ‘money pumped into leadership and management training typically doesn’t yield the return on investment in improved organizational effectiveness and performance that companies expect.’ This is where HR analytics can be a game-changer. It can help in figuring out the exact areas in which an employee is struggling and can custom-plan trainings accordingly. That will help in boosting training ROIs.
Boost manager-reportee relationship and growth
When viewed from a macro-level, managers do have an immensely crucial role to play. They are the ones who micro-manage the daily activities that drive organisational growth and result in profitability. HR analytics can help in empowering managers at various levels with crucial data on their team. This data driven by big data analytics and predictive analytics can help in foreseeing outcomes and create better relationships between managers and their respective teams, eventually driving organisational growth and profits.