Adroit Market Research - Industry Insights

As hiring challenges are increasing, organization is becoming more agile to maintain their market share of the talent pool. Workplace planning require more attention than before. Companies need to determine the hiring needs with their budget to project the future success of the organization. HR plays an integral role in determining these systems succeed. HR professionals need to carry a lot on their shoulders. HR professional’s role are staffing, recruiting, to payroll, compensation and much more. This role is often undervalued as isn’t directly related to revenue actually coming in the organization. These are some major issues facing by the HR professionals. Thus to succeed H

As hiring challenges are increasing, organization is becoming more agile to maintain their market share of the talent pool. Workplace planning require more attention than before. Companies need to determine the hiring needs with their budget to project the future success of the organization. HR plays an integral role in determining these systems succeed. HR professionals need to carry a lot on their shoulders. HR professional’s role are staffing, recruiting, to payroll, compensation and much more. This role is often undervalued as isn’t directly related to revenue actually coming in the organization. These are some major issues facing by the HR professionals. Thus to succeed HR professional need to understand people management as well as business operation strategy. Now for HR professional it’s become more about the numbers and analytics. Therefore, HR heavily rely on strategic thinking as a core competency. In particular, analytics help HR professional to project how long it takes to fill a position or cost of training per employee using metrics. Hence, HR analytics are as important as COO or co-founder of any other business for making business decisions. This way HR analytics is responsible for human-capital analytics for business decision making. Engagement model, SLA/ KPI, pricing model, change management, governance and service provider selection Companies are some factors need to consider while dealing with the third party analytics. HR analytics is the methodology which gathers, analyse and organize the data related to HR functions. Recruitment, employee management, talent management, performance and retention are the aspects fulfil by making better decision in all the areas. HR analytics is basically an application to improve the business outcomes with the help of statistics, analysis and modelling of employee related factors.

In addition it helps to manage and improve the ROI. To make the work environment better and maximize employee productivity HR analytics plays an important role.

 Most Common HR analytics Challenges:

HR analytics it is still at an emerging stage even though interest in is increasing. Because of lack of internal talent within the companies, traditional mind sets of HR, high investment cost as high operational cost HR analytics are facing problems. Thinking narrowly about HR and pressuring it to a set of largely fixed processes is the main analytics issue.

To improve HR’s strategic role data analytics is used. This analytics can be exciting and terrifying as well at the same. Many HR professionals have limited much experience with data analytics thus they don’t know where to start. The path of HR analytics to actionable way is not so easy. There are some major challenges need to overcome by the organization so that it can achieve the organizational goals such as:

• Finding people with the right skillset to gather, manage, and report on the data
• Data quality
• Data cleansing
• Too much data to parse or not knowing what data is most important
• Proving its worth to executive leadership
• Data privacy and compliance
• Identifying the best HR technologies to keep track of the data
• Tying actions and insight to ROI

Data need by HR Analytics Tool:

Data required segmented into internal and external data. In data collection, one of the biggest challenge is the quality data and right data.

1. Internal Data

The data obtained from HR department of the company is referred as the internal data. HR system contains various types of data points that can be used for the analysis. Some data points includes in internal data are:

• Employee tenure
• Employee training records
• Employee compensation
• Details on any disciplinary action taken against an employee
•  Performance appraisal data
• Details on high-value
• Reporting structure
•  high-potential employees

Sometimes, this data is disconnected and so may not serve as a reliable measure. Here, data scientist plays an important role. The dispersed data and create buckets of relevant data points get organized in the internal data. Further this can be used as the data for analytics tool.

1. External data

By creating working relationships with other departments of the organization External data is acquired. Like internal data, it is essential to have data from outside of the organization. External data offers a global perspective that working with the data which as the internal data of the organization cannot.

External data are:

• Financial data: Financial data is most important to calculate the revenue per employee and the hiring cost in the organization.
• Passive data from employees
•  Organization-specific data
• Historical data

Big data is directing big changes in HR domain.  Big data helps to solve major trickiest issues of any organization. Because of the insights it offers around workforce management Data analytics in Human Resources department becoming a new area of innovation rapidly.  To improve the performance and to maximize the business outcomes data is used in HR functions. Additionally it improves the experience of the employees.

Benefits of HR Analytics:

Moreover the HR analytics helps HR professionals to move from operational analytics to a more strategic segment of merit. Companies are now realizing that the success of company is built with the people. Benefits of HR analytics are Task automation, Decreased retention, more productive workforce, Process improvement, improved workforce planning through informed talent development and improved employee experience.

Conclusion:

HR analytics could have a direct effect on profit of the organization. And the main aspects of the HR team is to connect and analyse the disciplines which are likely used to achieve the results. In addition, it is needed to prevent falling behind and achieve the desired goals. In the coming years several companies are likely to set a trend by using the available data and decipher which is likely to occur. It is essential for the companies to utilize their value by using HR and workforce planning, by conducting several conferences and meeting in the organization. This is the medium for the learning and to share knowledge. One of the best things about analytics is to have a competitive advantage over others. Analytics in HR department is shaping the role of HR in any business organization.