Data has become one of the most valuable assets of organizations as it empowers them to make wiser decisions that positively impact their revenues. Hence, data is the blood running through the veins of a company, thereby making it essential for each department to embrace it in the best manner possible.
This article focusses on the importance of data in HR. So, if you are an HR practitioner, brace yourself to know how crucial it is today to make data-driven decisions.
People analytics is a critical aspect of the modern HR which advocates the practice of utilizing relevant information extracted out of employee data to enable organizations to build an impactful strategy. Therefore, playing around with data is an indispensable quality that every HR tech team must develop.
Since most HR professionals belong from a non-technical background, words like data and analytics could sound alien to them. In other words, it could be daunting for them to apply data techniques for the progress of their department. But, the truth is that you have to begin from somewhere.
Not long ago HR leaders felt paralyzed when it came to applying data techniques, however, things have changed since then as you will find many HR tech experts acting as the vanguards of the HR field who are capable of using predictive analytics to cater to the issue of high turnover.
People analytics – Top Driver of Business Performance
HR technology plays a central role in enabling businesses to make significant decisions like identifying a location for setting up a new office, restructuring the workplace, going ahead with mergers and acquisitions and so on. People analytics is one of the strongest weapons in a company’s armory that can help it win big battles.
Attrition can lead to inexplicable costs
As per the report of Neilsen, an organization dealing in Global Information, one percent reduction in employee deduction can help a business bypass costs worth $5 million. This very same analysis also revealed that internal mobility can be your best bet for enhancing retention.
Engagement has an impact on Sales
The Footwear company based out of UK, Clarks, found out that employee engagement is a major indicator of their retail performance. A 1% elevation in the engagement would cause a 0.4 enhancement in sales. The analysis also disclosed that the main drivers of engagement are the size of the team along with the store manager’s tenure.
Good Candidate Experience is Critical
Virgin Media, a Telecoms company, experienced that within one year, almost 75,00 customers abandoned their subscription in 4 weeks of having to be a member of a recruitment procedure, as a consequence of facing rejection of bad experience which led to a loss of £4.4 million. Later on, by improving their candidate experience, they not only recovered their money but also seized a way to earn £5.3 million by expanding their customer base.