Big data and analytics are a slowly rising but key trend in Human Resources. This trend has already been widely adopted by other business groups, like marketing, sales, and operations. There is also much data in the HR world, but HR seems to be lagging behind when learning to harness that data for practical use. According to Deloitte’s Global Human Capital Trends 2014 report, only 14 percent of HR departments are using data analytics.
How is big data analytics different from the traditional measurement tools? Big data is a term used to describe the growth and availability of huge amounts of data. Being able to analyze this massive volume of data is the analytics part. With effective analysis, not only can you see what is currently happening, you can use it to determine trends, patterns, and even predict future behaviors.
With the adaptation of data analytics throughout the rest of the business world, HR is feeling the pressure to catch up. Instead of just measuring turnover rates, big data and analytics allow us to identify why turnover is happening, predict future causes of turnover, and make recommendations to address the cause or causes of the turnover. The cost of training new employees can be reduced through understanding, predicting, and addressing why employees leave the organization.
As with any new technology, before jumping in just for the “coolness” factor, do your research. What HR pain points would these types of analytics address? How will it help efficiencies or to cut costs? Research the available systems. Will they integrate with current systems. Do you need them to? Do you have the personnel and financial resources to adopt new technology right now? Learning more, answering those questions, and using the technology to HR’s best benefit will help advance HR in the big data world.