How Big Data Can Drive HR
The term ‘Big Data’ is used to describe a large volume of both structured and unstructured data which has a great impact on business on a day to day basis. However, it is not the amount of data which is important here, but it is what organisations do with this huge volume of data that is of importance to businesses. Big Data is used for analysis to gain better insights that lead to strategic business moves and important business decisions.
In today’s business scenario, Big Data helps human resources earn a position to become an active part of the business planning process. It is supported by the in-depth insights and predictive analytics which Big Data provides. However, a lot of Human Resource departments are still trying to figure out what to do with the huge volume of data. Few HR departments are thriving without any business analytics while a lot of others are still struggling with the huge volume of data being unable to analyse and interpret Big Data.
This article attempts to touch upon the latest trends of Big Data that drives Human Resources. While it is true that technology cannot replace the position of a highly skilled HR professional, it can certainly streamline operations and validate decisions in real-time. If organisations show interest in learning about the latest trends of Big Data early on, they may be able to leverage them in the market.
1. Companies are becoming smarter
They have learnt to identify vanity metrics. These are statistics which just look good, but they hardly offer any meaningful insight. When it comes to data sets, quality always wins over quantity. Hence the application of metrics is far more significant regarding Big Data. Since companies are hiring more data analysts and are training the employees on how to use the analytics programs, HR teams are now focussing on the strategic use of the collected data.
2. Predictive analytics are becoming smarter
Predictive analytics is, in fact, a powerful tool for businesses and the programs that are available under it are finally helping HR departments to step up in their game. While predictive analytics provide insights into employee benefits, talent management, and promotions, it’s also used for deeper forecasting. For instance, predictive analytics help in measuring the efficiency of the training courses. They also assist in identifying which employees are more likely to leave, aka Flight Risk.
3. Tools for analytics are becoming simpler and more affordable
Previously, a lot of companies were unable to afford the complete suite of analytical tools while others who could afford and purchased were of the opinion that they did not help to uncover the insights that they were seeking. Nowadays, new options are available. Companies such as Oracle and Dell have adopted HR Open Source. This is a movement which has brought an open source approach towards recruiting and HR. Eventually, more options are likely to fuel the use of data analytics across organisations irrespective of the size.
4. Organisations assign value to human capital
A lot of organisations claim that while human capital is one of the most crucial business assets of companies, yet they have a hard time backing up that statement with data. With Big Data analytics, companies will now be able to assign financial values to individual transactions and understand the financial impact of every employee in the organisation in a much better way. This is likely to have potential implications on employee benefits, recruitment, and retention of talent.
5. Sensors offer a new perspective to Big Data
There are new ways of collecting data these days which range from online listening platforms, internal monitoring systems, and the growing Internet of Things and utilise this data for getting on the floor insights. The farming and manufacturing industries use sensor driven data provides real-time feedback on the performance of crops or machines. It also impacts HR responsibilities, for example, introducing a sensor which helps to monitor the safety of workers. If the HR department can identify warning hazards or other real-time data signals, it will help them in finding new ways to improve the safety of employees and even improve regulation of compliance.
6. Data analyst demand is at an all-time high
A skilled data analyst easily understands how to massage and extract data and produce actionable reports. Considering the high market demand, there is a shortage of data analysts. Hence, organisations need to get really creative to find the talent they need to meet their needs for analytics.
Big Data has a huge potential to improve every aspect of business if organisations are willing to take the effort and time to figure out how to incorporate it into their business. The right kind of data focused talent and tools may help in transforming organisations There is a huge potential for Big Data to drive HR; all you need to do is to take advantage of it and utilise it in the right perspective.