As big data becomes a pervasive resource and tool, HR is evolving into a data-driven function, with the focus shifting from simply reporting data to enabling the business to make informed talent decisions, predict employee performance, and conduct advanced workforce planning.
Many companies have made significant investments in HR technologies to manage their day-to-day transactions but just a small number of companies use these aggregated terabytes of valuable data to make meaningful data-driven decisions.
However, the situation is changing and a growing number of executive teams are adopting advanced analytical techniques. As part of a broad workforce planning strategy, analytics can be instrumental in creating a more fact-based approach to solving complex workforce issues. Our research shows that companies that are ahead of the game in this area are doubling their improvements in recruiting, tripling their leadership development capabilities, and enjoying 30 percent higher stock prices than their peers. (Deloitte: Global Human Capital Trends 2014)
In Deloitte, we believe that being a step ahead and successfully leveraging analytics and big data is essential for organisations seeking to enhance HR’s role in business decision-making and outperform their peers in executing their talent strategies.
Benefits of HR analytics
Benefits of HR analytics solutions include:
- Uncovering the hidden drivers of retention
- Understanding the characteristics of high performers and predicting the risk of their leaving
- Prediction of workforce demand
- Prediction of employee success and tenure
- Understanding the impact of pay increases in detail to make more scientific decisions about where to invest to maximise performance