Big data analytics is here to stay, especially in the area of managing human resources. Many organizations are turning to their company’s HR analytics to evaluate how to get the most return out of their human capital. In addition, companies are also making use of HR analytics in order to retain and recruit as well.
According to a study in 2013, over half of the companies surveyed reported that they used HR analytics for operational reporting. Yet only 30% were making use of HR analytics for decision making. Additionally, the number of companies using analytics to plan for their future workforce was significantly lower.
The study provided invaluable insights to organizations that were using their HR analytics to find out why they were losing top talent, and what kind of compensation might entice them to stay. But that’s not all they were used for. In financial organizations, they were used as a way todetermine why people might commit fraud and what contributes toward temptation. For companies producing product lines, information such as demographics, educational, and experiential factors were used to determine why top salespeople chose to leave even if they were considered to be high performers.
For companies in the high-tech sector such as Google, HR analytics, according to Dr. John Sullivan, are a must. Sullivan says that at Google, each employee generates nearly $1 million in revenue and $200,000 in profit each year. Sullivan attributes this largely to the fact that Google’s HR is almost completely data-driven.
Sullivan also says that Google relies on this data to determine the eight characteristics of good leaders helps them determine which work environments can help employees be more effective. It can also give an indication as to which workers are likely to leave the company. This kind of information can help management a chance to try to get them to stay by offering incentives or advancement if appropriate.
You can find out more details about how Google and other companies are making use of their company’s human resource data in the complete article at Tech Republic.
The area of analytics in human resources is changing every day. Many companies can end up feeling overwhelmed and confused as to how they can make the best use of this information. At NetPEO, we can help. NetPEO understands that every company’s HR needs are unique. We can help you in the areas of human resources by offering a wide range of services. We offer our clients human resources management, payroll services, management of employee benefits, liability management, brokerage services, as well as employee leasing.
Find out how we can make HR analytics work for your company’s long-term goals. Contact us today to discuss your company’s current needs and to schedule a free assessment.