Top 5 trends in HR analytics
Yes, HR is about people. That will never change. But technology and HR analytics are not the enemy of people-focused management – rather they help us understand our people better.
Technology gives us unprecedented insights into the patterns and trends which shape our workforce, and our business.
Research indicates that the HR leaders of the future will be those who understand what technology can do; who know how to mine intelligent insights from the technology, and know how to apply them to their workplace to achieve their business goals.
So what trends do you need to know about? We bring you the top five trends in data-driven HR.
Trend #1: The rising importance of analytics
The rise in the use of HR analytics is one of the top 10 trends in human resources, according to the report, Global Human Capital Trends 2016, produced by Deloitte Consulting and Bersin by Deloitte. The study includes responses from more than 7,000 business and HR leaders from 130 countries.
This prediction is echoed by numerous other reports, including What’s Next For HR in 2016? 11 Trends from HR Leaders, by insight and technology company CEB.
Trend #2: The capability gap in people analytics
While HR and business leaders understand the importance of analytics, there is a distinct lag in capacity to use it effectively.
According to the Deloitte report, 75% of companies believe that using people analytics is important, but only eight percent believe their organisation is strong in this area. In fact, people analytics was the biggest capability gap identified by Deloitte, next to good leadership.
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Trend #3: Dedicated analytics positions
Many large organisations are looking to narrow this gap by hiring dedicated professionals to manage their HR Analytics.
A recent report by Price Waterhouse Coopers found that 86% of survey participants reported that creating or maturing their people analytics function is a strategic priority for the next one-to-three years. And nearly one-half (46%) of those organizations already have a dedicated people analytics function.
How do you know if your organisation can justify hiring a new person to handle your data and analytics? Well, the PWC report found that the median organisation has one individual focused on people analytics per 3,567 employees.
So if it’s so time-consuming, why do organisations bother? Because HR Analytics can tell you things no one else can.
ADP, a major global Human Capital Management (HCM) company, explains:
“Companies that want to gain a competitive edge increasingly need to use analytics to gain data-driven insights into workforce trends and take action to refine recruitment, compensation and other performance incentives to meet employees’ evolving goals and interests.”
Trend #4: Beyond operations and compliance
HR Analytics isn’t new. HR leaders have been using analytical tools for years, to analyse metrics such as remuneration, absenteeism and performance and to report on operational issues.
What’s changed is the volume and quality of data collected, and the power of the analytical tools to make sense of this data.
The right HR analytics tools reveal powerful stories about what people are doing at work, who’s linking with who, who are the rising leaders.
When managed correctly, HR analytics can help you make informed decisions about:
- who, when and how to hire
- who your top performers are, and who are the leaders of the future
- hidden skillsets within your teams
- which teams are more collaborative or active or engaged than others
Trend #5: Even easy tools now give in-depth analytics
HR analytics is no longer the domain of big multinationals. Even small to medium businesses can benefit from foundational analytical tools.
Think of LinkedIn. Its reporting tools lets you who’s connected to who, which prospective talent has most connections and endorsements.
RedBalloon for Business REDii platform, the cloud-based employee reward and recognition system, gives you easy tools to analyse and report on rich data. This includes reports on Moments of Recognition, including who got recognised and why; plus reports on allocated points, rewards and user engagement.
To find out more about how the RedBalloon for Business team can help you reward and recognise your people, contact us today.