According to Gallup, an analytics company, lacking data analytics capabilities in your human resource efforts translates to 5% less employee development.
To HR, employees are the greatest assets in the organisation. As assets to the business, it is important that you continually invest in employees. This is achieved through the provision of training opportunities and a supportive working environment. Carrying out employee development ensures you are getting and adding value to and from your employees.
The lingering question is, however, whether you are getting maximum value from the employee development strategies in use. Utilising data analytics capabilities in your HR department will help you get 5% more value from your employee development activities.
Data Analytics & Shaping Employee Development
Data analytics in HR helps keep track of employee training data. According to a 2017 study by Deloitte, 71% of top-performing businesses consider HR data analytics as critical to the organisation’s employee development activities.
Highlighting the need for new talent recruitment, additional training or employee retrenchment is largely dependent on insights gained through HR data analytics.
The importance of HR data analytics in powering employee development within the contemporary business context is highlighted in a 2019 study by Oracle. The Oracle survey collected responses from 1,510 respondents drawn from 23 countries across the globe. The majority of the respondents identified as key decision-makers in their respective businesses. The findings of the study indicated that 94% of decision-makers can predict the occurrence and effect of turnover in the organisation. 94% of the participants also highlighted that through HR data analytics, they have real time insights useful in decision-making on employee development goals. 31% of the respondents further indicated that the use of artificial intelligence tools enables them make use of HR data. Without data analysis systems and tools, such insights from the HR data would otherwise remain unknown and unexplored.
The statistics indicate the growing interest and sense of importance surrounding the use of HR data analytics for employee development. Development of data analytics capabilities takes different shapes across businesses. In some cases, the business might opt for specialised tools. The selected tools may use artificial intelligence in analysing data and giving comprehensive information. Alternatively the business can focus on hiring managers – skilled in carrying out data analysis tasks. The growing interest in HR data analytics also points to the role of the HR manager. The role of the contemporary HR manager has changed significantly following the adoption of data analytics in HR functions. Lacking data analytics in HR could translate to cumbersome analytical processes.
Taking advantage of data analytics capabilities in HR could result in 5% improvement in your employee development efforts. The growing popularity of HR data analytics highlights its importance in employee development and advancement of the organisation across departments.
Sources Harter, J. 2018. Employee Engagement on the Rise in the U.S. Retrieved from https://news.gallup.com/poll/241649/employee-engagement-rise.aspx Davenport, T. & Anderson, D. 2019. HR Moves Boldly into Advanced Analytics with Collaboration from Finance. Retrieved from https://www.oracle.com/a/ocom/docs/hr-analytics-report-ipaper.pdf Davenport, T. H. 2019. Is HR the Most Analytics-Driven Function? Retrieved from https://hbr.org/2019/04/is-hr-the-most-analytics-driven-function