In our previous blog, "3 Important Benefits Of Using HR Analytics In People Management", we have explored predictive analysis and how HR Analytics works in people management.
"HR Analytics has become quite the backbone of the many industries, revolutionizing its various aspects."
Despite all of its achievements, organizations using HR Analytics face some obstacles. Let's take a look at the opportunities and challenges of HR Analytics.
Organizations can use HR Analytics to create an analytical model which indicates the likes and dislikes of employees, their strengths and weaknesses and assists in deciding the right time for promotions.
Analytics helps calculate the efficiency of training practices, measure the effectiveness of performed CSR initiatives, considering their contribution to corporate culture and employee involvement.
Companies can streamline the hiring process by using HR Analytics to dig through hundreds of resumes to narrow down the list of candidates for a post.
Analytics can also ensure a bias-free recruitment procedure, offer diversity to the workforce and estimate metrics like time-to-hire, cost per hire, revenue per candidate. etc.
Being able to predict the behavior of your employees in the future, who will be leaving, who will be the successor of a firm is essential for a company.
Analytics assists the HR department in hiring and promoting the right people and identifying the attrition risks so HR can begin implementing the needed support and training before an employee quits.
“The figure shows the benefits of HR Analytics in an organization. It not only upgrades the recruitment process and reduces attrition but also improves employee engagement rates and satisfaction.”
Companies that fail to prevent hacks into employee data face stiff fines of up to $21 million or 4% of the annual worldwide turnover, whichever is the greater of the two.
High amounts of confidential and sensitive data get analyzed every day, raising concerns about violations of security and privacy for the employees. The HR department must also ensure that their data usage falls within the company's ethical boundaries.
Companies, especially smaller ones, can lack the statistical and analytical skill set required to handle large datasets and derive results.
Often the quality team or CFO takes charge of these operations. However, companies must hire experts to analyze such enormous amounts of data. Improving analysis and data evaluation skills should be a professional development focus for HR professionals for companies lacking in this field.
Different HR tools catering to different functions makes too many sources of data work in isolation. Every unit makes its own data, be it the HR information system or employee referral software,
Data scientists spend 85% of their time collecting and cleaning data. Integrating these isolated data systems and making them communicate is tedious and time-consuming.
The figure above shows the challenges faced by organizations in implementing HR Analytics. Lack of skilled professionals, security concerns and curation of data often prove to be a challenge for them.
HR Analytics took the world by storm on its introduction, revolutionizing the HR department and other aspects of industries.
It is still rising to its full potential, breaking through its obstacles and making its mark in the professional world. Despite the challenges, the future of HR Analytics seems bright, with more companies realizing its benefits today.