In this video, explore the use of HR analytics to understand the labor market.
- You come into work, and what do you find? Yet another resignation letter from another key leader. You may become frustrated and wonder, what in the world is going on here? Using workforce analytics may give you just the insight you need. Workforce analytics uses data to give insight into human behavior. Questions like why is our turnover rate 20% or is it time to give pay raises can be answered using analytics.
Analytics helps HR pros analyze trends, which allows HR to plan appropriately and make recommendations that are grounded in measurable data. Business leaders respect this kind of analysis, which improves an HR pro's credibility as a strategic business partner. Let's face it, many HR pros chose a career in HR, not math or statistics. Analyzing large amounts of data quickly can present a huge challenge. However, there are several tools available that help HR pros draw conclusions about raw data.
Being able to interpret this data is key. The HR pro should be skilled in the art of storytelling to convey what the data means and what actions need to be taken to ensure the workforce is in full alignment to the company's objectives. Predictive analytics is a subset of workforce analytics that's used to understand the workforce from the standpoint of how, when, and where it's best to recruit talent. HR pros in the talent acquisition space leverage predictive analytics to reduce time to fill open positions, reduce time it takes to search for a person to fill a role, and to determine who the quality candidates are before going too far into the interview process.
Predictive analytics also improves the quality of candidates in the pipeline for future openings. This is done by cross-referencing the listed skills and abilities to job roles for which the candidate didn't initially apply. An applicant tracking system is software that helps you manage your recruitment needs. Some may include a section to list your top ten skills or the system may assign descriptors or tags to certain content on your online application. This is an example of the company you've applied to collecting data to help predict the skill mix they can expect from future applicants.
Additionally, many human resource information systems ask for employee information to be categorized or tagged with descriptors that can be analyzed later. These descriptors may then be used to predict which departments produce the most promotable employees, or which managers produce cross-trained employees. Workforce analytics software can grab all of this data about candidates that has been captured in multiple systems to provide a better understanding of their ability to fill other roles in the company that may not be advertised yet.
This is a great tool for internal recruiters, who help execute the talent acquisition strategy. PHR candidates are faced with the ever-changing workforce daily. The human touch you bring as a professional can never be replaced. People are multidimensional, so there isn't a tool made that allows you to predict with 100% accuracy how well a new hire will adapt to and enhance the company culture. However, analytics offers another perspective that's measurable and a credible tool for HR pros to use when influencing senior management.
- Modeling ethical standards
- Managing legal risks
- Finding and interviewing candidates
- Designing training and measuring its effectiveness
- Designing total rewards
- Promoting diversity and inclusion
- Employee engagement strategies
- Managing complaints and grievances
- Implementing workplace programs