Do we really know how far Big Data has gone especially in HR, traditionally HR has always been all about people, processes and some data may be; but as we move into a more technology driven digital age – HR is not far in how it can and should start to leverage the Big Data.
How big data is changing the role of Human Resources
We live in the age of big data. It’s everywhere. The world is being re-imagined because of it. Every day we generate, collect and share large quantities of information from our smartphones, laptops and tablets – and soon we’ll be adding TVs and fridges to that list. Big data is the new fuel that is increasingly driving businesses. Companies are jumping at the chance to gain a competitive edge through data analytics, and data scientists hold some of the most in-demand positions today.
The use of big data in the realms of marketing and customer relations is well known. But let’s delve into how it’s also changing the role and future of Human Resources departments.
Like big data, “sustainability” is another buzzword these days. To ensure economic sustainability going forward, businesses are realising they need to focus on their human capital. This means leveraging big data to find – and retain – the right candidates.
HR managers are becoming more aware of this, and big data is currently one of the top areas for tech spending by HR departments. It’s expected that by 2018, 6400 organisations employing 100 or more staff members will have implemented big data analytics. HR practitioners who don’t make this key adjustment run the risk of falling behind.
Big data is casting a new light on HR practices
The HR side of big data is often referred to as “human capital analytics”, and looks at the effect HR metrics have on organisational performance. This means examining staff turnover rates, engagement levels, individual performance scores, pay scales, and productivity. Mining these datasets reveals insights into trends, patterns and other predictors of behaviour.
The knowledge gained from the data can help managers to identify which staff members may be planning to leave, and understand the reasons for their dissatisfaction. They then stand a stronger chance of being able to persuade top performers to stay. Holding onto the best staff is key to the growth and stability of a company – they are an investment, and big data can greatly improve the return on human investment by cutting attrition rates.
Analytics is helping HR target only the best candidates
When it comes to finding candidates who are a good fit for the job, big data is also starting to play a central role. Firstly, it can pinpoint exactly what is needed in terms of staff numbers and skillsets. Secondly, it can prevent companies hiring unsuitable people, which is expensive and detrimental to productivity. One way this works is through intelligent data matching, where jobseekers are connected with the best possible opportunities for them.
Big data can also help managers to calculate the most effective pay scales, preventing under and overpayment. Overall, it equips managers to make better-informed decisions that help shape a more agile, streamlined workplace.
The quality and scope of big data is continuously increasing, and more skilled data scientists are becoming available to do mining and analytic work. In addition, analytics tools are improving, making big data explorations easier and more accessible for HR departments. Their role as talent managers has never been more important.
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