Analytics and business intelligence go hand in hand. Companies have created more efficient systems, developed better customer experiences, and increased their bottom line by leveraging big data.
Big data has recently grown in importance in the business world, potentially providing truly groundbreaking benefits if an organization understands how it intends to use that data to generate insights.
In the case of a human resources department, combining big data with workforce analytics can provide insight into the types of employees who thrive at the company and what to look for when hiring in the future.
What is Workforce Analytics?
Workforce analytics is the practice of using data-driven intelligence to improve and enhance decision-making in areas such as managing and hiring top talent, aligning compensation with performance, and so on. It makes informed workplace decisions and predictions using big data.
Many organizations have a large amount of data that is either underutilized or improperly organized. Workforce analytics aids in the optimization of this data by collecting, organizing, and transforming it into useful human resource decision-making information.
In simple terms, the art of analyzing employee-related data using a sophisticated set of tools and metrics is known as workforce analytics. The goal is to recognize, quantify, and improve talent’s role in achieving strategy and creating value.
It entails gathering data from internal and external sources, processing, storing, and analyzing it to gain insights into the people whose competence is critical to an organization’s success. HR professionals can use workforce analytics to make informed decisions about the employee lifecycle, including recruitment, performance evaluation, training, compensation, etc.
Practical Ways To Utilize Workforce Analytics To Build An Equitable Workplace
The following are a few practical ways the HR department can use the power of workforce analytics to replace traditional recruiting sources to manage a diverse workforce within the organization:
- Identify Existing Disparities in Diversity
Workforce analytics provide HR with a comprehensive picture of the current workforce composition. Using this data, it can extract people based on their age, gender, and ethnicity. An organization must first identify its existing diversity gaps before attempting to recruit a diverse workforce.
The HR department will then have a clearer picture of the diversity gaps in leadership and other areas of the company. These insights can help you determine your hiring process and re-frame the diversity agenda.
- Reduce Unconscious Bias
Unconscious bias is a problem that many businesses face. It has a negative impact on people’s judgment. Taking on the issue of bias in recruitment is difficult. Data sets can provide insight into the advantages of having a diverse workforce for business leaders. The HR department can then put strategies to reduce bias, whether it’s in terms of receiving resumes or establishing diversity goals.
If you hire too many employees who think and react the same way, performance and productivity will suffer. HR can use data sets to find and select diverse candidates.
- Workforce Intelligence For Proactive Strategy
Advances in workforce analytics provide a powerful way to gain critical workforce insights and measured operational outcomes and ROI for informed strategy formulation. This creates a unique combination of being proactive about the organization’s future talent needs and retrospective insight into the continuous strategic and operational shifts required for the best talent outcome.
- Establish Priorities
Presenting visual data to demonstrate an issue and influence decision-makers is the most effective use of analytics. Leaders can interpret data and take action using statistical reports and graphs. A graphical representation of the facts will help leaders comprehend the issue and implement a solution.
- Avoid Biases During The Selection Process
Workforce analytics can help identify a candidate’s behavioral traits and core values. Companies can use an algorithm to predict the potential strength of interpersonal relationships between applicants and potential employers by determining behavioral compatibility, fundamental values, and diversity.
To determine if applicants feel welcome in the company, core values are evaluated rather than credentials and skills. This avoids the hiring process’s initial bias.
- Recognizing How To Reskill Candidates
Because of the scarcity of skilled workers and the need for employers to create their labor pool, workforce analytics will be critical in breaking down job requirements to understand better where and how to reskill candidates and employees.
Employers can look at what a person brings to the table in terms of creativity and innovation and translate those skills into what they require with the correct data.
- Pay Equity
Equal pay distribution in the workforce is another common issue related to diversity. Some businesses are surprised to discover such large pay disparities in their systems. To determine the cause, you must dig beneath the surface. Analytics come into play here.
Gender-based compensation is insufficient. To figure out what’s driving the results, you’ll need to run a multi-variable regression analysis. Then you can begin changing policies and procedures.
Maintaining transparency with employees and stakeholders is one of the most critical aspects of workplace analytics. It becomes easier to obtain the necessary information and make informed HR decisions once everyone understands the importance of tracking this data.
It’s not rocket science to manage a workforce. However, it is important to note that there is no one-size-fits-all workforce management strategy. What worked for one business might not work for another.