August 09, 2023
Businesses strive to be data-driven to boost their operations and achieve better results across different departments. HR departments are among those that can benefit most from big data when making proper use of it.
The challenge for any HR professional is, however, to use HR data for actual business impact instead of just being data-driven in words. Thus, here we will look over how to utilize web data and HR data analytics to implement procedures that make a difference in your organization.
Data-driven HR model
Organizations collect employee data for basic HR tasks, like contacting the employees, accounting for work hours, and tracking performance. Creating a data-driven HR model, however, requires more than just basic data collection.
To reach transformational outcomes via HR analytics, HR departments need a robust data-driven model, which includes the following.
- Use the data for HR decision-making.
- Use HR metrics to evaluate outcomes of data-driven decisions and track your progress.
- Analyze performance data to identify performance trends and factors that affect them.
- Constantly monitor employee engagement levels and the performance of HR-incentivized employee engagement programs.
- Use both internal and external HR data for the hiring process and recruitment decision-making.
- Promote an all-around data-driven culture in all the departments.
- Use predictive analytics to forecast future hiring needs and identify the potentially best hires.
Taking these steps will build a data-driven model in your organization. Nevertheless, efficient talent management requires continuous efforts. Thus, keep analyzing your model, researching trends, and making improvements.
The business impact of data-driven HR
Achieving business impact with people analytics is not as straightforward as one would want it to be. Only implementing a strong HR model like the one outlined above can ensure transformational business outcomes. With such a strategy, you will be able to advance the following goals.
Improve hire quality and efficiency
Filling open positions with high-quality employees is among the most important HR functions on which the entire business directly depends. Due to the sheer volume of employees available for various positions, without the help of data analytics, recruiting initiatives are doomed to fail.
With recruitment data analytics, HR teams are capable of finding the best fit from the large talent pool available efficiently. Data analytics will help to streamline the hiring process and ensure that the top talent is attracted before the competition gets to it.
Boosted employee retention
When performance is suffering, HR data analytics enables HR to identify the root causes of such issues and provide solutions that will satisfy everyone and raise positive employee engagement levels.
With enhanced talent management, employee retention rates rise, protecting the valuable human capital of the firm. Experienced employees are better able to advance business goals and bring immediate value to the company.
More efficient onboarding
The sooner the new hires can realize their potential within the company, the better. HR analytics allow for improving onboarding practices and tracking the outcomes of various training initiatives.
High-quality data management will also help new employees find their way around the company’s key platforms and procedures faster. Additionally, with accurate people data, personalized training programs can be created in cases when general practices do not produce the expected results.
Positive employer branding
At a time of historically low unemployment, having positive employer branding is critical for competitive hiring. Thus, high-quality people management and pleasant hiring procedures, boosted by recruitment analytics, will have a priceless business impact.
There will unavoidably be some employee turnover, no matter how great the internal company culture is. People analytics can also help with this. With well-prepared exit interviews highlighting the learning and development achieved in the firm, HR professionals can turn former employees into dedicated advocates of the brand as well as use the information from exit interviews to improve in the future.
Improved caseload management
The volume of cases related to workplace issues that HR professionals have to handle can be downright overwhelming. With people analytics, it is easy to automate case management and uncover actionable insights into what works when dealing with various types of issues.
Better caseload management will also free up the time of HR representatives to prepare for future hiring spurs and research critical employment trends.
Sourcing data for HR analytics
The foundation of all analytics-based strategic insights is, of course, data. To implement data-driven practices based on hard facts and actionable insights, HR leaders need to source large volumes of diverse employment and people data. Use the following list of data sources as a guide to HR data analysis and collection.
- Internal employee data management systems.
- Publicly available web data.
- Training data from onboarding and employee training initiatives.
- One-on-ones, recruitment, and exit interviews.
- Employee surveys.
- Historical data on labor market trends.
You can collect the external data for your HR analytics on your own. Alternatively, you could enlist the services of HR data providers to enrich your data sets with additional high-quality data points.
5 recruitment metrics you can leverage
Tracking the right metrics is the foundation of data-driven HR procedures. By combining internal and external data you are able to benefit more from keeping tabs on the 5 metrics below.
Employment to population ratio
This metric compares the total population of a region with the number of employed working age people. It allows us to watch the labor market in the region, identify underemployed teritories, and kickstart further analyses into recruitment potential of a particular area.
Employed with underutilized skills
Tracking underutilized talent in other companies provides perfect opportunities to headhunt top talent. By looking at web data on job descriptions and comparing it with the employee‘s resume and employment history, you can identify underused specialists who will welcome an offer for a more challenging role.
It is the ratio of hired candidates as compared to the total number of potential candidates.
You need to leverage web data from hiring platforms to evaluate the pool of available candidates and, therefore, your selection ratio correctly.
The main source of employee satisfaction data is, of course, your own employees.
However, in order to evaluate what your employee sentiment means, you need a point of reference. Web data about employee happiness in other firms, such as anonymous employer reviews, provide such a point of reference, guiding your assessment of employee happiness.
Once again, to understand the candidate's experience in your firm, you need to see the broad picture of current job search conditions. Additionally, your company reviews from job search sites like Glassdoor can give you an unbiased perspective on the quality of your hiring procedures.
How to integrate web data into your HR processes?
The entire organization will benefit from integrating web data into people management. Due to its versatility and availability, public web data is the perfect candidate for building data-based strategies.
Employee data integration starts with removing data silos within the organization. Different HR teams have to be able to share data seamlessly in order to make the most of it. Enriching HR data with web data from reliable sources would then have the biggest impact on HR procedures.
You can achieve this goal by building your own web data-based candidate platforms accessible to all recruiting personnel in your organization. As an additional benefit, it would boost recruitment automation, allowing to filter out the candidates based on pre-identified necessary skills and qualities of the best performing employees.
Furthermore, by looking at online job ads of your top competitors, you can identify the skills they are looking for when filling key positions. If your workforce lacks those skills, it might be a human capital risk that needs to be addressed by investing into appropriate training.
Finally, web data is the key to identifying the best recruitment channels. By analyzing datasets and knowing their primary source you will find out which job search platforms or social media sites have the broadest selection of qualified candidates for various positions in your organization. In addition, you will recognize where job ads of the competitors close fastest.
Understanding both the potential and the competitive environment of particular channels allows for strategically choosing where to invest your recruitment resources and thus optimizing your efforts.
The job of HR representatives has changed dramatically since the advancements in data technologies. At the end of the day, however, it is still all about finding the best talent and helping employees perform to the maximum of their ability while feeling satisfied with their job. Web data integration is the key to boosting HR analytics to create a data-driven environment within the organization.
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