Data Analytics - To Be Chief HR Driver – Just Hype?

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Imagine a scenario, where algorithmic tools & programs being used to calculate the number of years a person will stick around in an organization or selecting a candidate without any interview rounds. And how about this one, appointing employees directly as VPs, CEO, MD etc. because the data says so, even though data parameters look completely illogical to human mind. This may include gene/DNA analysis.

Primarily, till now HR’s have taken decision on biased data points which is based upon intuition or experience. Organizations are spending on well-intended, but mishandled retention tactics, such as raises, bonuses or promotions put in place by HR in an attempt to control attrition. When these strategies are applied without hard data to back them up, their results can be futile. Worse, money can be spent needlessly to retain people who are not actually at risk of leaving.

HR never realized how much data they had that they could tap into for information and insights. With data points being captured and recorded everywhere, human beings will be bound to be judged based on extrapolative models. Companies will start using artificial intelligence-powered tools to hire the right kind of employees. While people are unpredictable, a model with even 70-80% will work wonders. Especially where workforce numbers are huge, 20% risk is acceptable.

Predictive analytics are clearly superior to traditional HR metrics, which only communicates you what has happened last year. Ironically while 90% of the companies say predictive analytics is the future of talent hunting, only 7% employ it to find the right hires. At this point of time only few organizations are heavily investing in here.

The key point here is data analytics is the only true weapon which can bring a complete metamorphosis in the way HR has been operating in last few decades. We don’t need lag metrics anymore which just says what has already happened; we need metrics which tells us what’s going to happen.

Despite so much excitement around predictive analytics, human perspective will be required to take course of actions. The challenge will be integration of hard data compiled with human logic. We must remember that people are not robots. Human interference cannot be replaced completely, as after all data might have feelings too:).

Comments

  1. UnknownMarch 2, 2016 at 3:45 PM

    Kunal, this article clearly conveys your vision, which I really admire. A vision for the HR data analytics in the future to come. Keep it up :)

    ReplyDelete

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