Opinions? They’re everywhere.
But adding data to an opinion or instinct gives it a different kind of power—the power to educate and transform.
That kind of data-driven approach could make a difference in the field of Human Resources. Advocates of HR analytics say HR data combined with business insight have the power to transform how companies solve problems, offering new awareness of issues and a better look at what works and what doesn’t, inside a company.
So, what exactly is HR analytics and how can it give businesses a boost?
As part of their job, HR departments collect chunks of data, but for plenty of companies, that data may not be reaching its full potential. HR analysts put that data to work, analyzing information to understand questions like which employees are most likely to leave or the effectiveness of HR interventions. To put it another way, “it is about identifying the people-related drivers of business performance,” says says HR Analyst Erik van Vulpen. The goal? To take the guesswork out of employee management.
Meshing HR data with real business numbers offers a chance for not just “groundbreaking insight,” but tools that managers can use to make better business decisions, says Josh Bersin, an expert in this field. Over time, Bersin said, this analysis can help companies build data to examine (and help solve) issues like sales productivity, turnover, retention, fraud, and even customer retention and satisfaction.
While most agree that HR data is important, moving forward with analyzing that data hasn’t happened at record speeds. One global study showed only 5 percent of big data investments happening in human resources. But a Harvard Business Review analytics study of 230 executives shows more promise: 15 percent use analytics based on their HR data and other sources; 48 percent said they would be using analytics in the next two years.
Getting all the right information can make a big difference in hiring. That’s where ClearStar comes in. Contact us today to learn how we can help.