The use of big data in human resources is expanding and the growth does not seem to be slowing. And while technology will – and should not – ever replace the human element in HR it can be used effectively to help recruit, hire and retain the best talent in any niche. With this in mind here are three reasons why human resources departments across the world are making use of predictive analytics to improve both their efficiency and their company’s bottom line.
To Create a More Effective Recruiting Strategy
There is no doubt that big data is highly effective at helping HR managers and recruiters determine which candidates are likely to be best suited for open positions even before the formal interview process begins.
Data mining processes can be used to harvest information from resumes, cover letters and even from social media profiles to identify which candidates are likely to be more productive and contribute positively to the workplace. Not only does this cut the candidate pool quickly and effectively but also allows hiring managers to decide which evaluation areas they should focus on during face to face interviews to make the right final decision.
To Avoid Bias in Hiring
It is not surprising that many hiring managers tend to gravitate toward candidates who are similar to the top talent their company already employs. However, as current employees were almost certainly hired using the same biased method, all too often a company then finds itself with a workforce that lacks both intellectual and cultural diversity which, in today’s business climate, can leave them at a serious disadvantage.
By making use of predictive analytics to create benchmarks and models to score business areas and workers they can better determine what contributions – and which employees – are most valuable while also discovering areas where a more diverse hiring criteria may benefit the business in the long run.
To Aid in Employee Retention
Many things change in business but one challenge that never goes away in the world of human resources is effective employee retention. Given the amount of time, money and resources that go into orienting and training new employees getting a decent ROI on that investment is a must.
Big data in human resources can help here by helping hiring managers discover which employees are more likely to leave the company, which may require a new challenge, or a mentor, in order to remain in engaged in their work and which are the best candidates for promotion based not only on their skills but on their potential loyalty and longevity in the job.
Research has shown that companies making use of big data to aid in employee retention often see an increase in both job satisfaction and productivity, so in this area big data solutions can be a particularly good investment to make.
The Bottom Line
Most people in HR are coming to understand that big data in human resources can offer companies the chance to save time and money throughout the hiring and retention process. And considering that these huge challenges that any human resources department is expected to meet the use of these technologies is only likely to increase.