Companies across the globe are experiencing digital change impacting all professional functions. The selection of a data-driven program combined with smart HCM software has enabled people analytics to grow widespread.
We all know and have heard that companies today face a “war for talent” and obtaining this war needs new ways of getting and maintaining talent. The winners in this war will be mainly those who use data as a competitive edge to locate and attract the best talent. Thus, it is no wonder that globally people analytics has been growing ground in the last few years. Grand View Research, in its June 2017 article, determined that people analytics application solutions and advising services market is increasing at 16% CAGR per year, and will relinquish USD 2 billion by 2025 globally.
Companies across the globe are experiencing digital transformation affecting all business functions. HR cannot escape it’s an alteration. Studies show that 98% of data is being collected digitally today. As a result, all business functions have a chance to develop growth, creation, and productivity using HR analytics tool. For example, use of business analytics or marketing analytics helps a company to make real decisions linked to money or customers.
For example, Credit Suisse found that decreasing attrition by 1% events in savings varying from USD 75 million to 100 million per year(Recruiting Daily, April 2015). A technology corporation used people analytics to recognizes with high-risk characteristics and made coverage decisions to engage them with proven ROI.
The “promise” of people analytics is based on mainly two pillars:
Dealing with the growing risk of making contracts with large-sized companies, shifting workforce dynamics, and global footprint. This can be written using imminent analytics by giving estimations of probability of incidents happening or not. For example, finding best-fit talent that has the most significant ability to join an organization or likelihood of people working in promotion to a new role or probability of people leaving an organization. This piece of analytics has helped people management decision creators to combine knowledge with data to make sound decisions with decreased risk.
Second is similar to implementing alternative options or ideas to solve people management requests like hiring or retention. For example, studies have found that particular aptitude and also intelligence tests are useful predictors of work performance than interviews (Journal of Applied Psychology, 1994).
Given that People Analytics gives actionable insights, many companies have used people analytics beyond hiring and attrition to help, line and HR managers increase business efficiency and effectiveness. Oil giant Shell demanded people analytics study what connects different performances to organizational performance using employee engagement as a predictor of security incidents getting that 1% addition in employee engagement appears in 4% reduction in safety incidents.
Darwinbox People analytics is an evolving adventure with new applications coming up such as deriving insights from examining “social” sentiments of the employees, developing employee experience, personalized training and many more.
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