There has been a significant rise in the use of big data and analytics in recent years. With each iteration, there is upward growth and development, businesses continue to transform into data-driven enterprises by incorporating revolutionary data technologies and strategies. With this transformation, we identify that the analytics of data is one of the major cornerstones from which the business models of many new disruptive agencies(Uber and Airbnb) deploy.
Businesses generate a substantial amount of data, regardless of the size. Advances in technology have made it easier than ever to store, transform and model data, which helps identify useful patterns to support well-informed decision-making. Many businesses leverage the power of data analytics to build stronger relationships with customers and optimize business processes such as marketing and supply chain. While customer data analytics drastically improves the performance of businesses, human resource analytics greatly impacts them as well.
Better hiring decisions
Hiring new talent is an expensive process in terms of time, money and effort. Hiring the wrong people can be costly as well. Thus, recruiting the right people with the required skill set and characteristics is crucial. There are many factors that determine whether an individual is suitable for a job role.The traditional process of hiring is often flawed with cognitive bias and it can be very challenging to determine whether all factors are satisfied by an applicant. Data analytics and data visualization can be used to identify patterns which will lead to better, insightful hiring decisions at a lower cost. The top performers in your organization can be analyzed to develop a model which can predict the probability of success in a new recruit.
Enhanced employee engagement
Employee engagement is an issue faced by businesses worldwide. Ensuring that employees are engaged is crucial for job satisfaction and productivity. Disengaged employees often struggle to contribute to the overall mission of an organization. To tackle this issue, several aspects need to be considered such as relationships with co-workers and management-employee interactions.HR managers are required to develop policies to ensure that employees are engaged at multiple levels. Data visualization can be combined with employee surveys and employee data to help your HR department visualize the correlation between these aspects over a period of time. This will result in better decision making to ensure that employees feel engaged in the organization.
Improved retention rates
Retaining top talent is an ever-growing concern for businesses. Employee turnover has always been expensive for companies, yet retaining the best employees continues to be a challenge. Although there are several strategies to promote employee retention such as employee onboarding, performance-based incentives, bonuses, and maintenance of a good work environment, an in-depth analysis will help identify the effectiveness of the strategies and to what extent they should be implemented. To analyze the factors that determine the effectiveness of the strategies, data analytics and visualization tools can be utilized. These tools will enable your HR department to optimize their employee retention strategies, thus improving overall employee retention rates.
Better Employee Skill Set Management
Managing the skill set of employees is imperative. To manage employee skill set, most large organizations have introduced a formalized performance management system. Employees are usually encouraged to set annual or quarterly goals for themselves to improve their overall performance. The HR department also needs to analyze employee skill sets to develop strategies for improvement. Monitoring the progress of employees can be quite a challenge, as well as identifying the optimum strategies. To overcome this challenge, your HR department can use data visualization tools which will also help them get a better idea of the skills needed to be developed by employees for optimal performance enhancement.
More effective training
Training and development of employees is key to enabling growth and improving performance. Despite the potential drawbacks of training in terms of missing out work time and the costs, the benefits provided to the employee and organization are worthwhile. To optimize the training process, it is vital to identify what types of training best suits each employee based on their strengths, weaknesses and personality traits. Optimizing training processes is a difficult task however, data analytics and visualization tools have made it easier than ever. These tools can help your organization effectively map employees to training programs with ease. Further, the impact of the training programs can be analyzed to identify those that produce the best results and those that are not effective. This will optimize the time and money spent on training your employees.
Visualization of future trends
Human resource forecasting is important for proper planning, to better understand the need of your business. It will help organizations to modify their policies accordingly in the best interests of the business. There are several human resource forecasting techniques which can be used such as job analysis, supply forecasting, ratio analysis and trend analysis. To establish the most effective forecasting technique, it is important to analyze all related data. The analysis can be done using data visualization services, which can visualize future trends and patterns as well. This will enable your business to maintain its workforce in the event of a radical change predicted to occur in the distant future.