The Power of HR Data Is the Link To Modernizing The Workforce
Updated: Apr 25, 2022
Development & Management
The importance of HR analytics for workforce development cannot be overstated. Its role has been changing for the past few decades as we move from an industrial age to a knowledge worker economy.
The need for data-driven decision-making within organizations and the importance of organizational planning and strategic leadership necessitates using HR analytics in talent acquisition, retention, succession planning, and human capital management.
Here, we will briefly introduce what HR analytics entails while demonstrating why this trend cannot be ignored by any organization looking to grow its business or improve efficiency.
In addition, we'll cover how employers can incorporate it into their strategy to optimize processes and workforce.
Meaning and purpose of HR analytics
The phrase HR analytics is used to describe the application of statistical analysis, data mining, and artificial intelligence techniques, among others, to make better decisions about human resources at the organizational level.
HR analytics aims to help organizations better use their current workforce to gain a competitive advantage by using its talent resources effectively.
Transforming HR data into actionable insights, businesses can proactively align their workforce with the organization's goals and objectives.
The most comprehensive data must be collected and analyzed to identify trends, patterns, and best practices. Having this information with hr analytics software at one's disposal will enable employers to make more informed decisions on various matters, from recruitment strategies to staff retention efforts, among others.
In addition, organizations can utilize hr analytics tools to identify where weaknesses exist within their current workforce and take active measures to improve performance in that area of concern.
HR trends remote work is booming
In light of the pandemic, more and more people see the value of telecommuting. According to Enterprise Technology Research (ETR), "The percentage of workers around the world that is permanently working from home is expected to double in 2021 as productivity has increased during the coronavirus pandemic."
In addition, the Gartner CFO survey revealed that about 74% of organizations plan to shift employees to remote work post-pandemic permanently.
Companies like Google are already famous for allowing their employees to work remotely. Still, this trend is going mainstream and will become an increasingly common practice among employers due to the popularity and success of these schemes.
Technology adoption and deployment
With the advent of digitalization, companies have made it a priority to unify their dispersed workforces. This is done by implementing new technologies for communication that can keep up with a modern digitally-focused force.
Such technologies include video conferencing apps that allow employees worldwide to share thoughts in real-time.
Additionally, software like Slack has become an integral part of enterprise communications infrastructure by enabling businesses to communicate via chat rooms, giving teams instant access throughout global offices.
Employee's employee's value feedback
Many employees report they are most satisfied when their feedback is heard and acted on. Employees crave recognition and want their opinions heard.
When the Company listens, it validates employees' inputs, making them feel more engaged in work activities because they're getting credit for doing a good job.
The best way companies can motivate is by listening actively to what employees have on their minds at any given time so that adjustments are made accordingly before an issue causes employee productivity to go down or their morale takes a nosedive.
Companies are showing more support for mental health
Mental health has become a growing concern for many companies, as more and more employees are struggling with emotional disorders. In the face of this adversity, some organizations have used the data from hr analytics tools and have begun to react by providing resources or cutting costs to support their well-being programs better.
Business leaders are adamant about relevant skills
Business leaders recognize the importance of ensuring employees have the skills they need to succeed in their day-to-day work. It's no longer acceptable for employees to be disengaged and unmotivated.
Companies and hr professionals within the human resources leadership realize through their workforce analytics and data analysis that an employee's skills can directly affect job performance and whether or not a company is successful.
By analyzing data, companies can use hr metrics and predictive analytics to ensure more priority is placed on practical training programs that enable employees to develop skills, resulting in a more skilled and productive workforce. Employers also realize that investing in an employee's development and having the best hr systems and hr analytics tools will provide the actionable insights and relevant data needed to increase loyalty and retention.
Data has become a significant asset for HR departments
The economics of data is changing, and having the appropriate business intelligence and hr metrics to provide the people analytics and hr context for human resource management initiatives is now becoming a critical asset for HR teams. Big Data is indeed the new currency and the cornerstone of HR operations.
In addition, studies by Deloitte and Gartner show that data helps HR teams make informed and more effective decisions to deliver better services to the employer, employee, and other stakeholders.
Data-enabled decision-making allows HR teams to capitalize on emerging trends and patterns which otherwise might have gone unnoticed. Today, data is widely used to make critical decisions such as training and development, recruitment processes, compensation management, employee engagement levels, etc.