“People analytics” is a buzzword that has been floating around HR departments for more than a decade. While it's true that more companies are turning to talent management data as opposed to relying solely on interviews and gut instincts, most of these organizations are still a long way from truly capitalizing on the power of analytical data.
In fact, HR analytics and corporate talent expert Josh Bersin shared the results of recent study of 480 large organizations, which showed 84% of these companies still face major human resources data management challenges.
These challenges ultimately hamper an organization’s ability to implement talent management data seamlessly into every aspect of the employee life cycle.
Below is a look at five common challenges organizations face when building a hiring process around people analytics, and how to overcome these obstacles.
1. Take Time to Properly Implement Talent Acquisition Strategies
There has been an explosion in the people analytics industry over the last few years. New talent acquisition tools and techniques seem to emerge virtually overnight. This might tempt you to jump in with two feet, but before you take a potentially costly and time-consuming leap, stop and make a plan. Building a talent acquisition strategy around hiring analytics is best done in smaller, more manageable steps. Stay focused on utilizing the most powerful talent assessment tools first and worry about integrating the rest later. This will provide you with more meaningful and accurate data.
2. Hire Candidates Based on All Available Data, Not Your Gut Instinct
Employers have long trusted their gut instincts to help them identify top talent candidates. The problem is that study after study has proven that this subjective hiring method is not efficient for predicting future employee performance. HR metrics gathered through talent acquisition software provide you with measurable, objective data that allows you to look at the bigger picture. These metrics offer an effective way to compare job applicants, predict future performance, and to identify those candidates that "fit" into your company's culture.
3. Integrate Talent Management Data into the DNA of Your Organization
Too many organizations erroneously view their hiring practices as a stand-alone process within the departmental organization of the business. This narrow focus can prevent your company from ever utilizing the full potential of your talent acquisition strategy. The integration of talent management data should expand well beyond your hiring process and into the entire employee life cycle, including selection, development, and promotion. In short, people analytics should be woven carefully into the very DNA of your organization.
4. Fit All the Pieces of the Hiring Metrics Puzzle Together
All too often, organizations race to gather as much data from their human capital analytics possible…and then let it sit there without ever using most of it. Collecting data just for the sake of having data won't provide any value for your talent acquisition process. The benefit of carefully building a hiring process around data analytics is that it allows you to integrate each part of the process carefully together. It's just like a puzzle. Just because you have all the right pieces doesn't mean you can see the whole picture. It is only after you place each piece of your talent strategy correctly in its place that the puzzle becomes meaningful.
5. Create a Teamwork Environment from the Top Down
One of the most common challenges organizations face when trying to integrate people analytics into the hiring process is identifying who is responsible for implementation. In many cases, management will gather the data they think they need and then dump it on the HR team's desk. This strategy almost never works. Management and HR must work together as a team throughout the entire building process. The data collection process should not even begin until management and HR have come together to create a clear set of goals and objectives and to develop a strategy to achieve these goals. This will ensure that the right data is collected to drive the necessary results.
We know there’s a lot to building a data-driven hiring process, and we’re here to help. We work with each client on an individualized basis to create customized people analytic solutions that best meet the demands of your unique organization. Learn more by downloading your free copy of our eBook below, or speak with one of our talent selection specialists today.