HR Analytics is not a futuristic concept anymore – all leading organizations in the country and across the world are implementing HR analytics across all their levels and functions. In times of rapid internet access, lockdowns, recession and various other challenges, all top firms require their HR managers to have an analytics skillset for optimum performance. This leads to significant improvement in performance across all areas of the human resource function – from the recruitment process, to employee engagement, employee retention and much more. This is why all HR managers looking to build their career in 2020s absolutely need a basic understanding of HR analytics to be able to work at desirable positions.
Let us look at some of the key aspects of HR analytics that are currently being implemented in the HR functions of top companies:
1. Team focused performance analysis – Most of the HR performance reviews and practices are focused on the individual employee – how to measure an employee’s performance, analysing the key characteristics of the top employees, improving an employee’s work engagement and so on. There is little emphasis in HR functions on improving the performance of the teams. This is where HR analytics comes in. Analysing the performance of teams is better facilitated by HR analytics and leads to better organizational performance as a whole.
2. Empowering employees – In traditional organizations, there is a top-down approach for implementing measures, trying out initiatives and so on. This slows down the speed of evolution of the organization – such slow organizations are doomed to fail in the current unpredictable times. HR analytics enables the employees to take more initiatives. The employees get access to tools, dashboard, and means to communicate with each other directly. This improves communication between teams and breaks down barriers and silos which hamper the organization’s performance.
3. Improved time management – As per a recent survey, it costs HR managers 10 hours a year for the performance management of an employee. This includes review meetings, preparation of review meetings, performance analysis, documentation and so on. In larger organizations, this translates to thousands of hours of HR managers’ time which can be better used elsewhere. Through HR analytics, a large proportion of the performance management process can be automated. It also becomes a continuous process instead of a biannual one. This leads to a more efficient performance management system and more time in the hands of HR managers, all through HR analytics.
4. Bringing objectivity to the workplace – Traditionally, human resources has been a function which is treated more subjectively than other functions such as operations or marketing. This is because employees, being humans, are hard to predict are not rational all of the time. Thus, instinct used to play a major role in processes such as recruiting, and also in many other HR functions. This has changed with the emergence of HR analytics. HR managers can make better and more objective decisions with the help of the vast amount of data, tools and platforms that they have access to now. Human resources may not become a truly objective function of management like finance is, because in dealing with humans there will always be some ambiguity. But with data and tools at the disposal of HR managers, they are in a better position than ever to optimize HR performance in their organizations.
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