Talent is king in today’s business world, and data can help a CHRO make the best decisions in selecting the right people.
Data is increasingly becoming important to, well, everyone’s job.
“Organisations are accustomed to analysing internal data – sales, shipments, inventory. Now they are increasingly analysing external data too, gaining new insights into customers, markets, supply chains and operations: the perspective that Capgemini calls the ‘outside-in view.’ We believe it is Big Data and the outside-in view that will generate the biggest opportunities for differentiation over the next five to ten years.”
– Paul Nannetti, Global Sales and Portfolio Director at Capgemini
When it comes to making big business decisions, one cannot give enough credit to a Chief HR Officer’s experience. However, a company’s fate should not rest entirely on its CHRO’s intuition. Enter: Big Data. Thanks to machine learning and artificial intelligence, the Chief HR Officer can use simple reports and analytics to provide the insight necessary to make decisions.
Data is extremely handy when it comes to making crucial decisions, whether it involves managing distribution channels, finding premium or new customers, purchase planning, or pricing. Every decision can be evaluated effectively through data analytics. Geoffrey Moore, author of Crossing the Chasm, said “Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.”
When it comes to making staffing and HR related decisions, here are the key areas that could benefit from decisions powered by data:
1. Recruitment and Training
Apart from creating analytics about your current workforce, big data uses predictive analytics to help HR officers build and manage pipelines for qualified candidates. These reporting tools provide detailed insights into the data that impacts a company’s immediate hiring decisions. An HR officer can use big data to transform a company’s recruiting strategy.
2. Payroll and Benefits
Payroll and HR processes both involve analysis of complex data sets for employee and client demographics, wages, taxes, social security, work hours, and a variety of administrative functions. When fed into the right platform, data can be used to generate valuable insight into previously opaque processes.
3. Best Talent and Optimal Job Candidates
Big data can match job seekers with potential companies based on several factors including culture, personality, and skill using a compatibility scorecard. Compatibility scores are gathered through questionnaires. The scorecard breaks down individual and company values so both can see what they have in common. This ensures the prospective employees agree with the company’s vision. Using data analytics, companies can select employees whose values and qualities align with theirs, and identify reasons behind employee disengagement, increasing morale.
4. Improve Employee Performance
Using predictive analytics, companies can gather information about employees looking to leave, identify the need for mentoring, new jobs, or advancement. In turn, they can improve employee satisfaction and engagement, lowering employee turnover rates and increasing productivity.
Human resource managers play a very important role in ensuring the right talent but also must make the right decisions. Big data can ensure job seekers are matched with the right companies and help employees feel connected to the company’s vision and values while doing the best job possible.