It goes without saying that people are vital to the success of any company. There’s no doubt that any business which can attract the right competencies, manage talent effectively, utilize capacity efficiently, and retain employees is setting itself up for long-term success.
According to a 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. Many large organisations are looking to narrow this gap by hiring dedicated professionals to manage their HR Analytics.
Companies are increasingly looking at a ‘cultural fit’ – a metric hard to quantify, but essential to the organizational fabric . That’s why innovators like OutMatch are deploying analytics to sift through a breadth of data, to determine which candidate will complete the workforce, like the perfect HR puzzle.
Using analytics, managers can keep a razor-sharp focus on performance, progress, slips, and triumphs. This data, when aggregated, offers key insights. IntelliHR is an HR analytics company using tech to iron out knots in the workflow – improving individual productivity, and enabling significant costs savings for employers.
Mexico Government’s Ministry of Energy is currently harnessing a predictive analytics model for workforce planning – the goal is to locate skills gaps in critical oil and gas occupations (both existing and potentials) and eliminate them for a smoother pipeline.
The solution takes several factors into account, like adjustable macroeconomic variables which directly correlate to demand and supply of skilled labour in the industry. Take Yoi, for example, a training solution that weaves analytics into workplace learning to make the experience more contextual. The ability to predict gaps and plug them with minimal lags in performance is a great-to-have for any organization’s kitty, and modern software is making this simpler than ever before .
Gusto is a tool that maps a company’s ‘happiness quotient’, leveraging analytics to understand morale levels, motivation needs, and the overarching status of an employer’s ‘people culture’. These are ideas that go beyond just tweaking workforce practices – it can reshuffle the very basics of how managers communicate and engage with the workforce.
Employers invest sizable resources in identifying, on boarding, and training workers – those with high turnover end up incurring severe costs. And with high attrition negatively impacting the employer brand, the circle could turn vicious.
Predictive analytics takes historical data to unearth possible attrition before it happens.
The bottom line is that a company cannot be successful until its workforce decisions are backed by data. Some examples of successful companies that are using HR analytics are:
1. Google: Almost all their People/talent decisions are backed by data and analytics. Their Project Oxygen analysed their internal data to quantify what effective managers do. They discovered that essentially effective managers have eight key behaviours. They developed a management training program that incorporated these eight behaviours which led to positively better manager quality.
2. Mindtree: Mindtree uses HR analytics tools extensively in Turnover modeling, Risk assessment and management profile and productivity index. HR analytic tools has helped them predict employee turnover for the next 90 days and enabled them to create usable insights from data analyses that are fed into the forecasting model for the hiring teams (vacancy-based hiring).
3. ConAgra Foods: ConAgra Foods Inc. used predictive analytics software to find which key employees were likely to leave and why. The company looked at operations with high turnover and those with low attrition and examined 200 factors that might have contributed to employees leaving. The company discovered that pay wasn’t one of the top ten factors. Instead, the amount of internal recognition employees received was more strongly correlated with retention.
All of these trends point to having a slightly better workplace for all of us in the future, and while companies have new challenges in making this possible, they are likely to be rewarded by higher productivity and greater employee loyalty.
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