Use of data in human resources
From the number of applicants to the reason for termination: HR departments now have more data at their disposal than ever before. This is important data that can help the entire company move forward. To do this, it must be analyzed correctly and concrete conclusions drawn from the results in terms of actions and measures.
From job advertisements, applicant management and onboarding to HR administration and payroll accounting, everything should follow a concrete strategy. But developing a strategy is difficult if the current position cannot be identified. Nevertheless, it is possible for HR departments to overcome precisely this challenge with the help of HR analytics.
In recent years, HR has evolved from an operational discipline to a strategic discipline. As long as HR decisions are only made on the basis of a gut feeling, employees find it increasingly difficult to understand and accept the decisions and strategies. By using HR analytics, it is no longer necessary to rely on gut feeling. With targeted analysis, HR professionals can make data-driven decisions. In addition, the analysis helps to review and question the effectiveness of HR policies and various measures.
Will there soon no longer be an HR department?
On the contrary, it's about creating the right mix of gut feeling and analytics. Although the person with their gut feeling and expertise remains the deciding factor, HR analytics puts them in a better position to make decisions and can also refute them using neutral data. This enables HR managers to design predictions and scenarios in order to make fact-based decisions. The aim should therefore be to make the transition from administrator to active designer.
Areas of application for HR analytics
Optimize recruiting
Recruiting used to be relatively easy. However, demographic change and the shortage of skilled workers mean that it is becoming increasingly difficult to recruit competent employees. In the past, it was enough to create a job advertisement to which hundreds of applicants responded. Today, HR managers have to approach and present themselves to specialists in order to attract them to their company. First of all, HR analytics puts you in a position to discover specialists and talents so that you can be one of the first to apply for them.
Employee retention
Reasons for termination should be analyzed in order to counteract future terminations. This will retain employees in the long term and save costs that would have been incurred for the acquisition of new employees. If a company succeeds in retaining an employee in the long term, it can analyze past data and develop targeted strategies.
HR analytics is also used in many other areas
- Behavior prediction
- Employee satisfaction
- Personnel culture
- Employee profiles
Out of the silo
HR is always perceived as a silo in the company. Sentences such as: "They don't know what we need" or "They don't know our business" are unfortunately not uncommon. Through HR analytics, HR understands the core business and is specifically involved in the creation of a corporate strategy. At least when data from other areas of the company, overarching corporate goals and even public data are included in the analysis.
Based on this, HR analytics has a focus that means that no data is analyzed subjectively. The company and its employees are analyzed in their entire context. The aim is not to use data in any form at any price. Instead, the aim should be to answer questions that the HR department is already asking itself with the help of data analysis.
Little digitalization in HR departments
Unfortunately, HR is at the lower end of the scale when it comes to digitalization. For years, it was not necessary to react dynamically to constantly changing circumstances. The awareness and importance of digitalization with all its consequences has so far only reached a few departments in companies.
The market is changing day by day and is demanding more and more from companies. The chronic shortage of skilled workers means that companies are losing their most important employees and are therefore no longer competitive. Social media channels make it easier for recruiting companies to identify and recruit potential employees. HR analytics can change this situation for the better. HR managers should understand the company in the overall context of the market and also make decisions from this perspective.
The bottom line on HR analytics
There is no question that the human resources factor is one of the most complex areas of activity in a company today. Above all, it is the skills and commitment of HR managers and employees that turn competence advantages into a competitive edge. This is precisely why HR analytics is experiencing a major upswing. The in-depth digital view of what is seemingly already known helps to better understand the interrelationships. The digital transformation is in full swing.
