For any organization, one of the major expenses is the Payroll i.e. the salary paid to its employees which can soar well above the 50% on balance sheets. According to one of HBR’s survey, 71% of the CEOs said that they consider the Human Resource Capital as the most important factor for ‘sustainable’ economic growth. So automation in handling human resources is a very good idea but analytics is what defines success for organizations in the contemporary corporate ecosystem. And here’s why Big Data Analytics is the future of HR Software industry.
Talent Management and Predicting Turnovers:
Every organization intends to take good care of its employees and spends money to nurture its talent by training, gifts, outings and even pay for their children’s school fees or housing rents in order to take away anything that may potentially bother your workforce. But as a business establishment, you also need to focus on outcomes of such generous behavior and see if the money you spend on employee welfare is being appreciated properly and helping staff to better contribute to the organization. Big Data Analytics (BDA) comes to your rescue as it will record even the most minute employee transactions to make sense of them. Talking about employee payroll, the hidden costs are inevitable but they can be checked to ensure proper utilization. BDA can generate reports to give comprehensive insights on matters such as which employees are likely to quit their jobs in the near future. Using BDA to predict HR turnover is very useful and promising as businesses spend a lot of money on the talent acquisition process and dealing with manpower shortage on a frequent basis is no walk in the park. Thus, predicting employee turnover and realigning other business processes is very crucial in terms of profitability.
Employee Utilization and Detailed Insights to Maneuver Policies:
Managers have to deal with employees demanding leaves and complaining about the long working hours with the top bosses interested only in draconian deadlines and targets. As a manager, you need to strike a balance between your bosses and subordinates constantly to make things happen. BDA kicks in the picture by fetching performance data for each employee and the corresponding data of vertical along with market conditions. This also lays down the foundation for smarter policies while dealing with similar scenarios and in relatable ones too. Using this data, the payroll software can calculate the employee utilization by correlating the time they spend in the office cubicles, coffee breaks, water cooler talks and derives conclusions so as to track the areas where employees struggle and how they can be helped with training and also with some extra relaxations.
Talent Acquisition, Insights, and Metrics:
As a business, hiring the right talent is naturally a priority but with the population soaring high, you have too many to choose from. Perhaps, the millennials are also good at building profiles on social media platforms which in turn reflect their choices and affinity. This can be used to your benefit as the BDA shall help you analyze whether the skill set and the career graphs written on the resumes are in line with their profiles or they are simply boasting. BDA can also help asses their application with respect to the job profile and thus the candidates hold fair chances to get selected. One of the most common complaints amongst the applicants is that they feel that they were rejected based upon their race, religion or ethnicity. But computers don’t discriminate. The BDA also garners deep insights and these chunks of information can be used for interpreting behavioral patterns leading to some employees learning better, some leading and some of them aggressively pitching for the organization. They can be identified and nurtured accordingly. The modern BDA helps asses data far more extensively by chunking and mining for the most intricate details. These metrics are better than their traditional counterparts as they reveal a lot of hidden parameters.
Thus, one thing to which most of the futurists and business visionaries agree is that information is the future and capturing data of their own employees is very beneficial. Traditional analytics have been around since long but the modern big data analytics can provide the hidden parameters which can be effectively manipulated to play smarter.