Organizations sooner or later are realizing the importance of the big HR Data they are already in possession of. This data which otherwise ends up as mere records can be scientifically processed and information deduced can be used in strategic HR decision making. HR analytics leverages data to support the predictive and evaluative functions. Through forecasting, it enables the development of a workforce plan. Through metrics, it enables effective recruitment and development of talent. Good HR analytics tools provide real-time, dashboard insight into workforce needs and employee performance, allowing for real-time decision-making.
Some of the important benefits are:
Improved employee engagement
"Engaged employees", will always be actively involved in their work and the people with whom they work. They feel enthusiastic, encouraged, recognized and supported. Needless to say this promotes healthy work atmosphere in the company with increase in productivity, quality of work output improving overall company performance.
Improved hiring process
Talent Analytics actually improve the hiring process. It leverages data to inform talent identification and management. It can be used to predict and alleviate problems encountered during hiring process. With involvement of multiple managers cutting across various departments in the hiring process, the hiring decisions can not and should not be left to a combined subjective assessment only. The hiring managers can set a hiring benchmark which would establish some common ground "must have" criteria based on the data.
Reduction of risk of a bad hire
Faulty hires could be very expensive of any company. Analytics driven technology can reduce the risk of a bad hire by analyzing bad hiring decisions and performance data of the past. In other words extracting value from measuring the performance of past hires.
Reducing attrition and increasing retention
HR analytics enables not only a view of the workforce today but offers true insights that can drive talent-related decisions and actions, resulting in improved performance in the future. Companies can now actually predict high performers who were at the risk of leaving in near future and pre-empt with corrective measures.
HR analytics can also be used for salaries, benefits & compensation analysis and general pattern unearthing