Analytics is the discovery and communication of meaningful patterns in data.
Often, we are lost in the mass amount of BIG data that consumes a vast amount of resources and energy to derive at meaningful and impactful data for predictive decision making.
Organizations realize that good HR practices are no longer enough to be competitively ahead and gaining business intelligence into HR will be fundamental towards future success.
HR Analytics often process data from multiple sources such as resource reporting plans, performance management information, benchmarking, etc. The outcome revolves around decision making. Part of this fundamental source for decision making is linked towards having the right level of business intelligence and people data to improve employee performance and get better business ROI (Return on investments).
The need to drive evidence-based HR decisions is crucial as it eliminates human bias and subjectivity within HR practices and allows HR professionals to become more strategic in return. It drives strategic questions that evoke evolution in HR practices for tomorrow's business need.
Stages of HR Analytics will span across the complexity of gathering the analytics and also the business value that the data brings. Many of times, we spend tons of resources and money to gather, analyze and comprehend data that will probably bring a low-value proposition to the business.
Stage one, Reporting: What happened?
Low in business value and complexity, this part of analytics aims to share descriptive analysis into areas like demographics or performance of the current employee landscape.
Stage two, Analysis and monitoring: Why did it happen? What is happening now?
Increasing in business value and complexity, this part shares the storytelling capabilities of your HR analyst. Coupled with tacit knowledge into the employee landscape, this will enable the business to understand the analytical findings and linking it back to the business.
Stage three, predictive analytics: What can happen?
Highest value-add to the business and highly complexed is how data will be able to predict answers and make recommendations for businesses. This focuses on the future-looking, likelihood and probability in finding out hidden patterns and using mathematical models and statistical forecasting aims to elevate the predictions for business leaders.
Analytics for businesses brings about a huge potential to increase return on investments when it is tied to business outcomes and when these predictions point towards a range of possibilities that the business can plan for.
Analytics can provide powerful insights to making HR more effective, through identification of patterns and trends for better decision making and to drive cost effectiveness in deriving results from Big Data.