“The secret of my success is that we have gone to exceptional lengths to hire the best people in the world” – Steve Jobs
The said quote itself explains the power of recruiting ‘right’ candidate. A right candidate has the potential to transform an organization fortune to a new level. A right candidate brings quality and effectiveness that builds a brand and develops a unique customer experience, while a ‘wrong’ candidate can lead to a lot of extra stress and issues that can hinder the development of a business. But at the core, hiring right talent is important, and this is where HR personnel struggle the most. With the advent of an emerging technique known as “People Analytics”, hiring right candidate will get easy than ever before.
Necessity of People Analytics
Competition for onboarding top talent is getting fierce, especially in industries, like IT, financial service firms, healthcare sector, and manufacturing, that are going to witness a massive transformation. Ever growing numbers of job seekers, shaken economy and neck-to-neck ruthless competition are making HR’s job even more challenging to find right talent for the right job. One technique that is seen as a solution for the said problem is “People Analytics”. It is an emerging field that is pulling everyone’s attention due to its potential to assist HR people in recruiting the right talent.
Understanding People Analytics
People analytics or HR analytics is the application of statistics, mathematics, and modeling which collects and process worker-related data to see and predict patterns. This technique assist organizations to predict whether a particular person fit for a given job or not. Due to its ability to boost hiring and retaining the right talent, some people have gone so far that they have even started calling it as a “crystal ball for HR”.
How ‘People Analytics’ can help HR fraternity
- Identifying the features or variables in jobs and employees that matter/counts most
- Matching those important job variables with a pool of applicants or recruits
- Predicting the likelihood of a worker to stay on the job for a long time or to “churn”
- And recommending salaries and other compensation to bolster longevity
Importance of Peoples Analytics
There are lots of important questions that arise into the mind management peoples like: How can we find more top performers? What do our most successful leaders do to excel at their work, and how can we replicate that across the organization? Which people are most likely to stay for long? Which employees are likely to leave? With the right analytical tool in hand, one can get the right and accurate answers to these vital questions which pays a pivotal role in shaping company’s fortune and can assist an organization to maintain a robust workforce.
Popular HR Analytics Tools
Power BI link multiple sources like SQL database with people’s data, live twitter feed, machine learning API’s and more. All these different data sources are then combined with an aggregation process to create one large database. The consolidated data then can be used to create pivot table to let end user get a quick insight in the key areas of the workforce. And, all these meaningful insights then the end user can see in a user-friendly manner with Power BI’s dash boarding capacity.
Dealing with analytics requires some sort of technical capability to make the most of it. But what if the end user is not a technical person but still want the same results which can be derived from the above tool. Answer to this said concern is ‘SPSS’ tool. Without having extensive statistical knowledge, an end user can do an exploratory correlation analysis or a quick regression analysis. This makes SPSS one of the most commonly used HR analytics tools in social sciences.
It is a people analytical tool which is best suited to process huge data sets. It provides valuable insights that can help an organization to maintain robust workforce. It’s potential to let end user visualize and statistically analyze candidate data with the help of user friendly interface is the prime reason behind its popularity.
Interesting Research Finding
Many recent studies even prove the effectiveness and productivity of People Analytics techniques. Recently, Deloitte’s Bersin found that organizations that use people analytics techniques at a sophisticated level reported 82 percent higher three-year average profits than corporations without properly-deployed people analytics methods.
Over the world more number of schools, colleges, and universities are opening up than ever before. There is an increased awareness for education as well. More people want to get access to quality education to raise their living standards. All these are resulting into increased number of job seekers. With business competition going intense with each passing year, recruiting right talent has become the need of hour for HR personnel. The potential benefit of People Analytics will then definitely assist HR fraternity in recruiting and maintaining a robust workforce if applied meticulously.