Key Trends propeling demands for HR Analytics

The importance of Human Resource Analytics or HR Analytics should be understood by HR professionals as its success will determine the achievements of an organisation. Erik Van Vulpen described Human Resource Analytics as something about analyzing organisation’s people problems. Some examples of an organisation’s people problems are the rate of annual employee turnover and which employees are more likely to leave an organisation. Clues and answers to these problems or questions could possibly be found by analyzing the data collected by HR department. Unfortunately, data collected are often left unused, Vulpen stated. However, there are trends which have drive the demands of HR Analytics which we are going to explore together with challenges to overcome in each adopted trend.

In recent days, organizations have access to internal and external data of better quantity and quality. Large-scale digital transformation initiatives worldwide are beginning to provide organizations with precise, reliable, and integrated data which were unavailable previously. One of the business studies conducted by Bersin revealed that only 15 percent of surveyed organizations rated themselves high on data accuracy. duplication of data, data validity, and poorly defined metrics (for example, costs associated with an organization’s “cost per hire” metric) are perceived to be some of the major issues in data reporting. Key stakeholders may find data interpretation extremely challenging due to these limitations.

No one could ever deny the speedy proliferation of HR related technologies in large scale. Such as adoption of SaaS (“cloud”) HCM solutions. This trend expands the technological capabilities of HR within organizations. Overall customer satisfactions are enhanced and many business goals are achieved after user experience and interfaces are improved. Many organizations have begun to adopt much better and latest HR technologies upon realizing that generating HR analytics using older tool is no longer efficient. In order to analyse, gauge and draw insights from collected data, HR ought to have the right skills. Merely having access to the data will never be sufficient if HR professionals are unable to interpret and understand the data strategically before addressing potential problems. A digital HR report reveals that only 8 percent of the organizations participated in a survey were confident about the state of their HR analytics capabilities while others rated their HR team as poor.

Many organizations have realized that conventional ways used to review or appraise their staff performance are no longer helpful and outdated. A renewal focus in performance and analytics may help HR to determine exceptional performers and personnel who are at risk of incompetency. Besides that, it will also help in hiring better quality talents in recruitment processes. A challenge to overcome is that organizations are not open enough to integrate HR data other points leading to determinance of performance and productivity.

Examine common problems faced in hiring top talents, engage work force, manage retention and conduct rigorous assessments on work force diversities by taking the HR Analytics certificate program offered by Genashtim in collaboration with eCornell.