HR analytics also referred to as people analytics, is one of the key practices for organizations to analyze, report, and evaluate employee data for business decisions. From talent acquisition to talent management, training, and employee development, HR analytics play a crucial role in improving and optimizing the people’s side of the business through valuable insights, obtained from the data points generated during employee lifecycle and overall work experience.
The rise of HR automation has seen the extensive use of software to integrate different sub-functions across HR departments and within organizations to manage the strategic and operational tasks with reduced human intervention. The reason for the transformation leads to HR professionals’ years-long struggle to find a seat at the table with top decision makers like Operations and Finance. There have been discussions about HR metrics, scorecards, ROI, people economics, and evidence-based management for years without a noticeable change, however, the HR automation possesses the ability to solve their problems with the availability of data and advanced analytics tools to replace fads with evidence-based initiatives in the following ways:
The data-rich HR departments often struggle with HR analytics because the HR professionals generally lack data orientation, analytical skills, and mindset to move toward the change. Therefore, data is ostentatiously displayed in one-off corporate presentations to board and CEOs, otherwise, it mostly remains underutilized. The use of analytics is not simply a quantitative exercise, but it involves the integration of data gathered at every step of the employees’ work lifecycle, including recruitment, onboarding, learning and development, succession planning, performance appraisals, talent assessments, competency profiles, and absenteeism or leaves to tie all the pieces of data together in a way that tells the whole story. The HR professionals’ limitation to connect the dots and capture the picture that can help the organizations to manage and comprehend the job requirements, identify the best candidates, understand the team dynamics to accomplish business goals, and manage employees learning and development needs with an objective, and systematic approach are one of the major blockades that impedes the progress.
While HR analytics is transforming the HR function across the world, the practice is yet to be used effectively in the Eastern market including the Asian countries, and Singapore due to frail IT infrastructures, and relatively untrained HR professionals. Singapore Human Resource Institute (SHRI) conducted a study of 300 business & HR leaders from various industries in 2021 and concluded that HR analytics & insights are among the top 3 competencies necessary for a local HR manager role. The research also showed that analytic skills are amongst the top 4 capabilities and skills missing in the Singaporean HR fraternity. The study has been further endorsed by Forbes Human Resources Council which claims Analytical Ability and Data Science Skills as the most sought-after skills in 2021.
There is no denying the fact that HR analytics can play a crucial role in transforming the overall landscape of the business in Asia, but organizations with insufficient IT resources, lack of skills, and training are finding it difficult to kickstart an HR analytics initiative from scratch. However, with the right talent and resources, including Enterprise Talent Management System, the process can be simplified to overcome the challenges. Without requiring a big upfront investment, the Integrated Cloud and Web-based Human Capital Management (HCM) solutions are revolutionizing the HR functions by providing better and deeper insights, improved process efficiency, self-service culture, user-friendly design for workflows, and seamless data collection with high integrity and security.
The systems are available in modular formats, built around numerous applications and tools and the data is readily accessible to help all the departments in an organization effectively communicate with each other. The Human Capital Management Solutions provide greater ease of integrating data from multiple functional areas ranging from day-to-day operational analytics to advanced analytics with a dashboard that displays on a single screen the status of key performance indicators (KPIs) and other important HR analytics data points for an organization, department, team or process. The Enterprise Talent Management System, with its easy-to-use highly customizable modules, is also capable of developing casual models to provide deeper insights into how relationships between variables affect outcomes e.g. assessing drivers behind turnover, retention, and engagement in quality talent acquisition, etc.