Studies have shown that only a fraction of companies are using data to recruit and retain top talent. Using data to sift through the large pool of applicants and recruiting a suitable candidate, is part of a larger operation called 'people analytics'. However, if one were to ask the majority of companies, as to how they are making use of this tool, there are chances that the answer would be that they do not avail the benefit of this resource.
This conclusion has been derived after conducting a survey of more than 7000 professionals and hiring managers. The study has also highlighted that one of the biggest upcoming trends is people analytics. This seems ironic since more than half (55%) of surveyed talent professionals expressed that they require help implementing the data they receive into practice.
People Analytics – The Game-Changer
If you have not heard of the term before, you might want to look it up, as people analytics is proving to be a game-changer. Under people analytics, data is utilized to give the HR department a boost in the process of hiring, recruiting, and retaining talented employees. 68% of the companies surveyed use the procured data to measure the performance of employees, which is a step in the right direction.
However, only a minority of those surveyed have admitted to using the data to analyze their employees, that is, assess the flight risks within their ranks, remove prejudices while hiring and for promotions, or to predict whether a candidate can potentially be successful in a role.
This implies that there are companies who are willing to utilize the data at hand, widen the potential to succeed. Creatively using the analytical information can ensure that companies do not waste resources on employees who are ready to jump ship, at any given chance.
Using People Analytics to Perfection
Most companies that use people analytics are rather uncreative in making use of the information at hand. The companies keep on using the same, ancient template for employee surveys to determine the levels of engagement and whether employees have been productive or not.
The companies should take into account that in this digital age, it is a great opportunity to be able to access data. Therefore, they should not be either unimaginative or lazy in utilizing this data to increase the engagement of present or potential employees with the company.
One unique way that people analytics can be used productively is, to identify employees who are struggling under their particular managers and resolving any potential dispute before it explodes. This would not only be a better use for the assimilated data, but it would also reduce employee turnover rate.
People analytics is not a novel technique in the corporate world. This data-gathering strategy also does not require any additional costs to implement, but the return value is immeasurable. Analyzing the data available to the company with regards to their employees, is the only difference that distinguishes any company from a successful one.
Our reports have suggested that only half of the surveyed companies felt that they successfully collected and maintained some fraction of people analytics data. However, an even lesser percentage (39%) felt confident that they analyzed it succinctly. A dismal number, 37%, believed that they used data to solve the existing problems in the company.
However, it seems that none of the companies are using people analytics to map out the future of their companies. Merely, 29% of companies are proactively using this technique to solve problems that can arise in the future.
The Bottom Line
If your company has enough resources, then investing in this field is a great way to boost the company. Data is used to make decisions regarding operational topics as well, such as sales, budgeting, and funding. The time is right to apply the same concept to help out the HR as well.<< back to Blog