Why people analytics is essential for talent management?

In the world of today, the growth and success of business are complex matters. These long ago moved beyond the simple task of offering a good product or service, and began to encompass other direct factors such as sales strategies and competition, along with indirect factors like social consciousness. Only relatively recently, though, has there been the realization that the most impact on business growth comes from ensuring that the right people are successfully recruited, rewarded and retained.

Statistics bear this out. A survey in Australia suggested that 40% of companies find it difficult to source employees with the right skills and experience, pointing to a talent shortage that is seen in other places across the world too. The 2017 Global Human Capital Trends Report from Deloitte revealed some interesting points:

  • 76% of respondents in the US suggested that people analytics was important or very important

People analytics, also known as workforce analytics, is a lot more than managing expenses through insights into payroll. Organizations use a large number of applications that put out huge volumes of data, which can give critical insights that talent management professionals can use to proactively take better informed decisions. Such analytics helps to quantify parameters such as emotions, interactions, culture, decisions and more.

Implications for human resources

Workforce analytics can impact the work of HR leaders in a number of ways, as explained below:

  • Strategic focus: The people management practice becomes a lot more strategy-driven when bolstered with the right analytical input. Hiring, evaluation, promotion and other aspects can all be suitably tweaked to improve business outcomes.

Aspects of talent management that can benefit

Clearly, people analytics is key to successfully managing human resources. The impact can be seen on the following aspects of talent management:

  • Acquisition: Traditional applicant tracking systems do not have the advantages of comprehensive data, algorithms and keywords that workforce analytics has at its disposal. Background checks of prospective hires, for instance, could also include an analysis of their social media activity, for more comprehensive profiles. Analytics will also point to talent sourcing channels that offer the highest success and returns.

Originally published at boltposts.com on September 18, 2019.

Human Resource Professional. Passionate about Human Resources. Writing has always been a passion with strong interest in talent management & HR Industry.

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