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The Strategic Value of HR Data
While big data has revolutionized industries, its application within human resources is profoundly impacting workforce management. For HR managers, the core question is how to extract tangible value from organizational and employee data. The answer lies in leveraging HR data and analytics software and dashboards to transform vast amounts of information into actionable insights for managing the workforce, retaining talent, and mitigating risk.
How Analytics Drives HR Decisions
HR analytics moves beyond simple data collection to provide deep insights into every organizational process. By evaluating available data, executives can refine processes, make data-backed decisions, and elevate operational performance.
According to research by the Best Practice Institute:
- 82% of HR executives use analytics to identify the most effective training and development for their top talent.
- 80% rely on analytics to determine the characteristics that predict team leader effectiveness.
- 73% stated their top retention-related goal is using analytics to identify which employees to retain based on their projected future value.
HR Analytics in Action: Industry Examples
Google: The tech giant dedicates approximately one-third of its HR department to data scientists from fields like organizational psychology, statistics, and physics. These experts conduct experiments to generate insights used to create innovative programs that optimize Google's HR functions.
Black Hills Corp: This 130-year-old energy company used workforce analytics to manage significant growth. Faced with an aging workforce and the need for specialized skills, it used analytics to calculate retirement rates and define talent requirements for vacant positions, enabling strategic hiring and risk mitigation.
Integrating Analytics with the 70-20-10 Learning Rule
A successful method for integrating data into organizational development is the 70-20-10 rule, which balances corporate learning opportunities.
- 70% Experiential Learning: Learning through daily tasks, challenges, and hands-on practice.
- 20% Social Learning: Learning acquired through mentoring, collaboration, and interaction with senior coworkers.
- 10% Formal Learning: Learning from structured, formal training programs and courses.
Companies like SAP use this rule, informed by HR analytics, to embed on-the-job, social, and formal learning into their training processes and employee development plans, fostering a culture of continuous learning.
Key Data Inputs for Robust Analytics
To move from predictive to prescriptive analytics, organizations must integrate various data types:
- Applicant tracking data, resumes, and applications
- Employee history and performance reviews
- Retention and recruiting data
- Salary data and external compensation surveys
- Internal and external learning management system (LMS) data
- Formal and informal employee feedback
Widely Used HR Analytics Dashboards
HR dashboards are vital tools for effectively measuring and implementing analytics. They are designed to analyze performance and pinpoint areas for improvement. Some widely used platforms include:
- Workday
- Jobvite
- OfficeVibe
- Visier Workforce Analytics
- SAP HR dashboard
- WorkmateHR
- XCD HR
By adopting actionable analytics, leaders can use talent data to identify new revenue streams, reduce workforce costs, execute business strategy, and mitigate organizational risks. ""