What can data analytics do in HR?
Data analytics plays a crucial role in human resources as it allows companies to make informed decisions about their employees. By analyzing HR data, companies can optimize various aspects of human resource management.
First, data analytics helps identify patterns and trends in employee behavior. This can lead to improved employee retention, productivity, and satisfaction. In addition, the analysis of personnel data makes it possible to forecast staffing needs, recruitment successes, and employee turnover.
In addition, by using performance evaluation data, more objective decisions can be made about rewards, promotions, and training needs. Data analytics can also help identify and address bias and discrimination in human resources.
Overall, data analytics in human resources allows for more efficient management of human resources, better alignment of HR strategy with business goals, and ultimately an increase in the overall performance and competitiveness of the company.
To HR Analytics in eleven steps
With the following 11 steps, you can get started easily and successfully in the field of HR analytics and drive the HR transformation in your company:
1. Start small instead of standing still
Instead of waiting for perfection, take the first step. Start with a small project and gradually increase complexity.
2. Find allies
Find a business partner who supports you and recognizes the importance of HR analytics for your company's success.
3. Take a pragmatic view of data quality
Data quality is important, but not decisive for the war. Prioritize the usability of the data and be aware of possible biases.
4. Clear objectives
Define specific use cases and objectives before you start collecting and analyzing data.
5. Critically question KPIs
Make sure that the metrics you use match your company's needs, processes, and technical capabilities.
6. Set your own benchmarks
Don't compare yourself to other companies, but set your own standards and track your progress.
7. Translating data into stories
Communicate the results of your analyses in a clear and understandable way to increase acceptance within the company.
8. Track changes and make successes visible
Track the development of key figures and use them as a management tool for your HR strategy.
9. Focus on actionable insights
Prioritize deriving concrete recommendations for action from the data instead of simply collecting information.
10. Cross-functional collaboration
Collaborate with other departments, especially controlling, to get a comprehensive picture of the company's performance.
11. Establish expertise in the company
Build in-house expertise by turning an employee into an expert in HR analytics and data analytics in the company.
Result
Many companies are now using human resource management and data analytics software solutions to digitize employee management. These tools are designed to improve efficiency in human resources, similar to other areas of the business. However, HR departments often lack experience in systematic data analysis. Especially in human resources, handling large amounts of data and applying appropriate analysis techniques can be challenging. Nevertheless, getting started is easier than you think. What counts is keeping an eye on the goals that are to be supported or achieved with the help of data analysis. On the other hand, uncritically following the latest trends and tools without prior review can hinder entry and success.
