Analytic data is allowing the human resources function to more accurately measure their successes, formulate effective strategies for future human capital development and justify the implementations of new policies and practices.
The existence of easily accessible data is transforming business performance, leaving less room for error and guesswork and more space for educated predictions of business and talent progression within the company.
Despite its advantages, many organizations are still yet to incorporate analytic technology into their business model. Without this type of data measurement, companies are cheating themselves out of vital, in-depth information on the specifics of their strategies failures and successes.
An IBM study into workforce analytics outlined the key benefits for a business that uses data analysis as:
1. The ability to “define the requisite knowledge, skills and capability requirements needed for the execution of business strategy.” This includes defining the skills already exhibited by your talent, and finding out which ones need further development.
2. Frequently “evaluating workforce performance,” a tactic which is critical to maximize productivity and profitability within the organization, and can include pushing under-performing talent in the right direction while providing incentives and rewards for those over-performing.
3. To “ensure the continuity of operations and enable future growth,” through the medium of analyzing performance data and ensuring methods are in place to sustain the company’s best talent.
4. Being able to translate data related to “collaboration and knowledge sharing,” a tactic that can vastly improve the performance of not only talent, but the business as a whole.
5. Finally, “developing career paths and succession plans,” encouraging staff to feel valued and therefore influencing them to work to the best of their ability and commit fully to their future career within the company.
When analytics are used by HR in these areas to outline new training programs, recruitment tactics, talent sustaining and skill development, it can vastly improve business performance and influence the advancement of high potential employees who feel valued, and strategies that are tailored to the specific needs of the organization.
Analytics can also considerably improve employee engagement, as HR will now be able to fully understand and meet the needs of their staff.
A Pricewaterhouse Coopers study into business analytics states that this data may transform the way businesses deal with their retirement plans, reporting that data concerned with the financial risk of retirement combined with employee value and the retirement programs offered by competitors,
allows organizations to proactively manage financial risk and capitalize on market conditions to cost-effectively deliver retirement benefits, better align these benefits with business objectives and achieve an appropriate balance between employee reward and corporate profitability.
Businesses who are better prepared when it comes to employee compensations will foster a workforce who feel valued, have a strong desire to stay with the company and are confident their efforts will be rewarded.
In this sense, workforce analytics are transforming business performance as human resources can access previously unavailable data and use it to their advantage when it comes to making progress within the company.
This data also comes in handy when pitching new methods to executives, especially if they are going to be costly!
Analyzing data then using it to implement new methods in every area of the company is an excellent way to ensure solid development, both in terms of finance and human capital.
(c) New To HR.