According to Deloitte’s Global Human Capital Trends 2016, “As technology makes data-driven HR decision-making a possibility, 77 percent of executives now rate people analytics as a key priority.” However, the report goes on to state that only “forty-four percent are now using workforce data to predict business performance.” If you’re not part of that 44 percent, then you might be wondering what people analytics is, and how your organisation’s data can be used to help drive your workforce strategy.
People analytics, predictive analytics, workforce analytics, talent analytics – they are all terms to describe the use of data to address and predict business outcomes. It involves using a range of techniques and disciplines, such as statistical algorithms and analytical models, to analyse streams of structured, unstructured, internal and external data. It’s a massive step forward from traditional Business Intelligence solutions that involve the manual analysis of historical business data – a process that can be extremely time consuming, error prone and delivers limited insight based on historical data.
HR is without a doubt, one of the key business functions that can use data insights to maximum business advantage. Data insights enable HR teams to see with clarity, not only what is currently happening, but more importantly, to determine trends, patterns, and even predict future behaviours. It means that HR departments can adopt a far more strategic role – and step away from the service delivery model that’s focused on reporting and policy making based on retrospective insights.
With such powerful modelling and forecasting capability, HR executives can use data to discover opportunities to improve retention and performance; analyse flight risk; identify high performing job applicants; as well as the characteristics of high-performing sales teams and leadership candidates. They also can use it to diagnose management weaknesses; analyse engagement and culture; and identify high-value career paths and leadership candidates.
For a closer look at how HR executives are using predictive analytics to drive business performance, as well as the most effective ways to approach an analytics project, then download our thought leadership paper, Using Data Driven Insights to Drive Workforce Strategy.