Talent Analytics-The Next Big Thing in Human Resources

Human Resources is the backbone of any organization. In the last three decades, it has evolved majorly from managing people to company goals aligning with employee growth and development. In the next 3-5 years, Talent Analytics will be greatly affecting the HR Team’s productivity as they leverage technology.

 

Tech-savvy HR departments are already using analytics to predict and assess everything from employee retention to recruitment strategies to the success of wellness programs. For example, chatbots allow candidates and employees to have automated, personalized conversations with a computer. A worker could use a chatbot to find out how many sick or vacation days he has remaining or what procedures the company's dental plan covers. Of course, all these features are computer-generated. Millennials, now the largest generation in the workplace, are used to getting the information right away through a computer or smartphone.

 

"Technology is enabling us to provide employees with a more consumer type of presence at work, with a greater ability to have richer digital experiences and find what they need 24/7," says Larry Nash, U.S. director of recruiting at consulting company EY in Pittsburgh.

 

Talent Analytics can be divided into three aspects:

 

Hiring analytics provide insights into prospective hires by analyzing their skills. It also guides the company into making an impartial decision based on the data. One hot topic in the industry right now is biased, and it is argued that hiring analytics can help stem or even eliminate this from the hiring process.

 

Ongoing feedback analytics focuses on the existing workforce, determining whether the teams in the company are performing well, whether they have the right skill set, and the right talent in the right places.

 

Optimization analytics marries the data and predictions from hiring analytics and ongoing feedback analytics to ensure the company has what it needs to make its internal processes as robust as possible. Future organizational performance is inextricably linked to the capabilities and motivations of a company’s people.

 

Organizations that have used data to gain human-capital insights already have a hard-to-replicate competitive advantage. Others, too, can draw on these new techniques to improve their business results.

According to Deloitte, Talent analytics presents a groundbreaking opportunity for HR organizations. Their research shows that companies that implement true business-oriented talent analytics can double their engagement, improve revenue, and dramatically increase almost every business measure by making better people decisions. But the journey is not easy, and it takes investment now.

Talent Analytics has helped many companies including Google and AT&T that have established through exhaustive quantitative analysis that an ability to take initiative is a much better indicator of high performance on the job.

Another company Experian was experiencing a bit of a problem in retaining employees. In fact, the attrition rate was about 4% higher than they would have liked. Using talent analytics to construct a predictive model that included 200 attributes, they were able to predict who would leave and who would stay.

 

Therefore, Talent Analytics is the next big thing in the Human Resources function and with its help, productivity, time and resources can be utilized to their maximum potential.

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