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Hiring the right talent, nurturing and retaining them have always been among the top challenges faced by HR teams across organisations. The task of hiring a candidate had a major hunch factor involved rather than facts. On the other hand a lot of HR activities of nurturing and retaining talents too, are not attributed to data driven facts. However, things are changing really fast as organisations now leverage data to facilitate their HR activities.
Big data and hiring analytics is playing a crucial role in determining the success of recruitments and also the ROI of HR processes. No wonder, organisations are now relying on talent management systems and hiring professional data scientists to filter out data and find crucial insights from it.
Speaking to Times of India, Prithvi, CHRO of HCL Technologies, said – “We have used talent analytics deeply in predicting employee retention and talent fulfilment, as well as profiling talent to enhance performance,” He further added that "By understanding workforce demographics and the unique dynamics they demonstrate, it enables us to ensure that we can predict the RoI (return on investment) of programmes, policies and practices with higher accuracy,"
“We have used talent analytics deeply in predicting employee retention and talent fulfilment, as well as profiling talent to enhance performance,”
- Prithvi, CHRO, HCL Technologies
A Quick Look at the Key Benefits of HR Analytics:
Data driven hiring decision – Talent acquisition and training comes at a hefty cost and in today’s world of cut-throat competition, making a bad move in hiring the wrong people is a huge set-back. This is where an HR analytics tool that allows data driven decision-making can help a lot.
Enabling easier decision-making for talent nurturing – Nurturing talents is a key aspect in retaining them. Employees should feel valued in an organisation. In a bid to ensure that, a lot of BPOs (where attrition rate is relatively much higher) have started resorting to data. They track employees’ conversation with customers, ability to solve complex problems, ability to upsell products, etc. and reward the deserving ones, through promotions or pay hikes. Instead of going for a uniform hike, this helps in rewarding the deserving candidates based on their performance.
Learning & development and Trainings – L&D is a crucial part in nurturing talents and upskilling them. This has further implications on organisation’s productivity. Such programs are held through computer-based tests and allows HR’s to further monitor the performance of employees. Those who perform better and complete their courses faster than their peers are seemingly more reliable. Moreover, companies can also arrange for trainings based on data based insights on their employees. It will help them to understand the exact need of employees and develop training modules or sessions accordingly.
Going the 3T way
Organisations have realised that the 3Ts, i.e. Talent, technology and transformation is the way ahead and they have to leverage technology to enable better talent management and ensure organisational transformation. Tech juggernaut – Google, has been the brightest example in this context. They have long replaced subjective analytics with what they call ‘people analytics’, which refers to an algorithm based decision-making.
Implementing HR analytics is still at a nascent stage as only a handful of companies use it. A study conducted by Accenture – the future of HR, revealed that only 13% of HR officers said that they have analytics and tools in order to drive their functions. It also stated the result of a ‘recent Oracle/Human Capital Institute Survey, where executives were asked which metrics would be affected with robust talent insights. 58% of those surveyed said profitability and 60% said revenue per employee. So, HR analytics is the way ahead for organisations to ensure robust talent management and drive growth.