Talent analytics is critical to companies, and using analytics in the hiring process drive success
In the 2015 Global Human Capital Trends report from Deloitte, one of the key focuses is on the importance of people analytics. People analytics, according to the report, has become the second biggest capability gap for organizations. This is because, despite all the competitive advantages analytics provides in understanding employees, most organizations are still new to using this type of data – in fact, 80% of HR professionals feeling that they have a lower ability to analyze. This results in problems such as “poor data quality, lack of skills [to manage and understand the data], and a weak business case for change.”
With analytics providing so many benefits, finding ways to improve and understand data quality is essential. And this effort can begin as early as the hiring process.
Using People Analytics in HR provides insights into who the candidate is and how they will perform
Building data for analytical purposes in the hiring process can lay the foundation for future insights by providing a “first look” at who the candidate is, and how they’ll perform as an employee. This can be achieved through the use of assessments. By assessing personality traits, skill levels, motivation and more, assessments can provide an early foundation for company analytics. These analytics can be used in several areas; from making a hiring decision, to improving employee retention.
Using Assessments in Hiring is only the beginning - Assessments should be used throughout the employee's career
Using assessments in the hiring process is only the first building block in an integrated analytics plan, but it’s a crucial one. As candidates become employees, and employees start building careers within a company, more data can be collected to improve on insights for both individual employees and the collective workforce as a whole. Evaluating this data throughout the employee’s work cycle can be compared against their initial screenings during the hiring process to help identify trends about particular candidates, a concept known as people analytics.
Data on employees can then be taken and used to refine the assessment process, enabling much more sophisticated levels of candidate targeting and assessment. This technique is called workforce analytics.
Using Workforce Analytics Improves Business Operations, the hiring process and Quality of Hire
Building an integrated analytics plan into the workforce is a daunting task, with 94% of HR professionals feeling that their use of HR data to predict workforce performance and improvement was weak to adequate. Additionally, 89% responded the same when asked about their utilization of HR and talent reporting. However, analytics is too important to ignore as they not only address HR issues, but business issues as well. With so many different areas to consider, and so many different ways to begin implementing analytics, one of the best ways to begin building high quality data around employees is to start collecting said data during the hiring process. By leveraging assessments during the hiring process, data can be used and refined long after the employee has been hired, improving not only business operations, but refining hiring processes and improving the quality of candidates as well.
By evaluating the ways your organization can benefit from the strengths of analytics, you're already taking the first step in a challenging but rewarding process. To learn more about reading our blog post people and workforce analytics.