Unlock the potential of HR Analytics: How to use Big Data in HR data analytics

HR Analytics, or data analytics in HR, is in fashion. There is no doubt that many of the most relevant innovations that we have seen in recent years are linked to this technology.

The potential of HR Analytics to keep talent

Currently, big data has become a fundamental tool for decision-making in various business areas. In the case of Human Resources, its use has become increasingly relevant, as it allows to analyse large amounts of data to obtain valuable information. This helps professionals improve talent management and the efficiency of staff selection and retention.

But how to use data analysis in the people department? Here are some of the most effective ways in which businesses can take advantage of this technology;

1. Candidate data analytics

HR Analytics (HRA) is capable of searching and selecting valuable information from large amounts of candidate data. It builds patterns and trends that allow us to identify the best candidates for a particular job;

For example, data analysis can be done on resumes, social networks and other sources of information. Faster than anyone else would, these solutions identify skills, experience and other factors relevant to the job; In this way, the final decision would be in the hands of the decision-maker, being relieved of tedious and repetitive tasks;

2. Employee metrics

Big data is also capable of reporting with metrics of current employee data. This provides us with information on their performance, skills and training needs;

This enables managers and staff to identify development opportunities and design specific training plans for each employee; Another application is to find out which employees perform better or worse, a very accurate way to evaluate individual or team work;

3. Employee satisfaction analysis

Related to the above, the HRA is even able to give insight into how satisfied employees are with the company, or with a certain activity. We can analyse satisfaction surveys, social media and other sources, using a variety of metrics;

The tools are capable of analyzing feelings, based on the words that employees use. With them, they produce reports with a fairly accurate approximation of what they think about the job, the working environment and the relationship with the company; These help us to make an assessment of the HR department; The management’s role and establish a strategy for improvement; Let’s not forget that the workforce is the best asset of any business and it is important to look after them and make them feel as valued as possible;

4. Analysis of staff turnover

High staff turnover is one of the main headaches for companies. Not only do they fail to recoup the work and time it took to form it, but they also fail to get the best out of it; If we are not self-critical and analyse the reasons for this problem, we will never be able to solve it;

For this, big data can be very useful, searching and analyzing patterns and trends that allow us to identify the underlying causes. For example, data on age, gender, work experience and other factors can be analysed to identify the groups most likely to leave the company;

5. Productivity analysis

The HR Analytics or HR data analytics helps us to understand employee productivity, in order to find ways to increase it. For example, it is useful to know the time spent on each task, the results obtained and other factors; With them we can identify opportunities for improvement and design specific plans for each employee;

Steps to use HR Analytics in HR

1. Define the objectives: Before you start collecting data, it is important to define the objectives you want to achieve with this tool. These points must be aligned with the company’s strategic objectives;
2. Gathering the data: Data collection is a critical and key process in utilisation throughout this process. Information can be collected through surveys, interviews, evaluations and other digital methods;
3. Analysis: Once everything above is stored, it is vital to analyze it to identify patterns and trends. The use of tools such as statistical analysis and data mining can be useful in this process;
4. Decision making:With the information gained through analytics, companies will be able to make informed decisions on how to improve job performance, reduce turnover and improve job satisfaction.

Benefits of using data analytics

The use of data analytics in the Human Resources department provides numerous benefits for companies, including:

• Cost reduction: Reduced turnover and improved job performance helps reduce costs associated with hiring and training. In addition, knowing what works and what doesn’t in the company eliminates experiments and bad decisions;
• Improved productivity: Identifying patterns and trends make companies improve productivity and labour efficiency. With them, we will know the time and resources devoted to each task, establishing strategies to reduce them;
• Improved job satisfaction: Using HR data analytics can help companies identify areas that need improvement and take steps to improve job satisfaction.

In short, the potential of HR Analytics in the Human Resources department is immense. The data provides valuable information to decision makers to improve the business and maintain talent. In this way, they will get to know their staff better; It also serves as an opportunity for self-criticism; Improving processes, increasing employee satisfaction or reducing costs are some of the benefits;