HR has yet to win the hearts and minds of company leaders when it comes to demonstrating the value of big data. In fact, only 41 percent of today’s leaders see talent data as relevant to business decision-making. But the largely untapped world of talent management analytics shouldn’t be ignored. Here’s why.
Dion Love, principal in the advisory group at CEB Talent Measurement, thinks it’s HR’s job to improve the relevance and actionability of their data. At last month’s Talent Insights event, Love talked about three major ways big data and predictive analytics boost talent acquisition while spurring visibly significant business improvements.
Talent Management Analytics Drives Action
Too often, HR doesn’t supply data until leaders ask for it, or they only work with data that’s readily available. Love says it’s time to stop waiting and start getting proactive. Use big data and predictive analytics to solve real business challenges.
- Create new hiring models. Big data analysis can help you understand the real traits of successful employees. With predictive analytics, you can weigh the relative importance of different traits, and you can forecast which candidates will become your future high performers.
- Forecast future workforce needs. Descriptive analytics tell you about the workforce you have now, but when you bring in big data, you learn about demographic trends, economic demand, college graduation trends, and other factors influencing the way you build your future workforce. Predictive analytics project who you’ll need in future positions relevant to potential skills gaps and demographic characteristics.
- Hire based on potential for advancement. Once you know your future workforce trends, you can hire people who will not only perform well in current positions but also have the talent to advance into those needed positions.
Build Better Recruiters
Sixty-five percent of hiring managers are dissatisfied with recruiters’ impact on their businesses. Right now, only 1 in 4 managers says that recruiting influences his or her hiring decisions.
Before you ditch your talent agency, ask yourself whether you’re giving recruiters the tools they need to succeed. With big data and predictive analytics, you can supply your recruiters with better data feeds and talent dashboards according to your future workforce needs. You can also update your competency models, which helps recruiters find candidates who are a better fit.
Help New Hires Excel
One in five new hires are considered “bad” or “regretted decisions.” New hire turnover, according to Love, costs $1.6 million in rework per 1,000 hires.
After you’ve used big data and predictive analytics to improve hiring, use it to develop relevant training and onboarding practices. Don’t just invent new curricula and procedures, however, based on your instincts. Let big data tell you which types of training correlate with good new hire performance, and let predictive analytics identify which types of training are most likely to yield immediate results. When you see how much turnover is costing you, it’s easy to see how investing in training yields significant ROI.
Keep Data Relevant and Actionable
Organizations that apply talent analytics culled from unstructured data and predictive models move much faster and more decisively that organizations stuck in the past. Check out Love’s webinar Big Data and Predictive Analytics in Talent Acquisition for more insights and best practices, and stay tuned for more on-demand resources from Talent Insights.