May 10, 2018 | Barry Lawrence, MBA, aPHR, HRCI Staff Writer
Workforce Analytics Is on the Rise
The use of workforce analytics to make better people and business decisions is on the rise worldwide. The digital workforce analytics market is expected to more than $1 billion by the end of 2023, according to a new global forecast from Market Research Future.
"The result of the workforce analytics allows the organizations to develop and improve the methods of recruiting and effectively take the hiring decisions," the report states. Workforce analytics also help organizations "identify the new positions needs and predicting the success of the employee. This proves a great benefit to the higher management in identifying the factors that influence the employee job satisfaction."
HR Technologist believes that three key trends are driving demand for HR analytics: better quantity and quality talent management data, enhanced technology and a renewed focus on performance management.
"Intelligent use of data has been touted as the path to success for all business units including marketing, sales and finance, and even the HR function," says the online information source devoted to tech-enabled HR. "Traditionally, data mining in HR was limited to compliance and regulatory requirements, but for organizations looking to stay ahead of the curve today, this is no longer enough. High-performance companies are putting people at the center of their business through an approach that takes the intuitive power of HR and adds data evidence to support key business decisions, make strategic investments and drive continuous improvement."
The article points to Nielsen as an example of an organization that expertly used workforce analytics to identify factors that are highly correlated with attrition. Through analytics, Nielsen discovered that employees were less likely to leave when they had a change in job roles via promotions or lateral movement. Nielsen increased internal mobility and was able to increase the retention rate of at-risk employees.
"Going forward, we could expect to see a sharp rise in the number of data sources for HR teams, leading to a fusion of external and internal data in talent management," HR Technologist concludes. "Organizations looking to retain their talent advantage will integrate HR analytics across different organizational functions, rather than consider it as a separate source of information. An integrated approach to HR analytics, coupled with the right skill set will define future business success."
Big data is also changing recruitment as well as retention, writes Bernard Marr for Forbes. Pulse surveys, he notes, are providing data on whether employees will recommend your organization to others. More companies are mining Glassdoor and LinkedIn for insights about employment brand.
"I firmly believe that those HR teams who can seamlessly work with data are the ones who will recruit most successfully in the coming years," Marr says.
For HR and non-HR professionals who want to learn more about workforce analytics, check out the new HRCI e-learning and assessment module, HRCI Workforce Analytics upSkill.