HR Analytics: Enhancing Talent Management

Human resources are an organization’s largest investment, top differentiator, and greatest risk. It is only natural that processes are put in place, to maximize the potential of talent in an organization. This is where human resource (HR) analytics comes in. It is the use of analytical tools and processes to gain insights on employee performance and required action to improve it. Advanced HR analytics tools go beyond controlling payroll costs etc. to proactively managing talent. Post-graduate level courses like Management Development Programmes (MDP) in HR analytics educate participants on the use of such tools, making them proficient in core processes of talent management.

HR analytics is used for talent management in a number of ways. Analytics can be used in all major phases of talent management: acquire, retain, and nurture. The best uses are driven by strategy and require skillful dedication to execution.

Acquisition

Sophisticated analytics give organizations an improved alternative to applicant tracking systems and their heavy reliance on keywords. Use of analytics makes the process of getting the right talent faster, as analytics meant to search applications and resumes are based on comprehensive algorithms and more data. Analytics solutions automatically scan applicants’ submitted profile, pull external data, carry background checks, and automatically shortlist candidates for manual review. This drastically cuts down the lifecycle of recruiting.

Retention

HR analytics can be used for ensuring fair remuneration of employees so as to retain them and boost morale. Compensation anomalies like under- or over-compensation of employees can be tracked and corrected using analytics which leads to leveling the playing field for all and is beneficial for the overall culture of an organization.

Nurturing

Identifying top performers early and accurately can be done by measuring an individual’s potential using analytics. Organizations use data that has been accumulated over an employees’ career progression to gain insights about their growth potential and attrition rate and conduct focused efforts on their basis. Well-defined metrics are deployed to achieve business objectives through effective management of talent. Skill gaps in employees can be identified using analytics and corrected with appropriate training. This works to advance the business as well as an individual’s job satisfaction. There are dual benefits from using analytics in this stage; predicting and harvesting talent and enhancing employee-employer relationships.

HR professionals have shared the tremendous success their organizations have experienced from adopting advanced analytics. Owing to such benefits and value-additions to organizations, a larger number of individuals are choosing MDP programs in HR analytics.