This article covers the basics of using People Analytics, offering advantages in the recruitment, there talent management, there training, there employee retention and the forecasting future trends. Aqsone guides companies in implementing these solutions to maximize their added value.
Aqson
What is People Analytics? And what are the obstacles encountered in the field?
Human Resources teams are becoming increasingly aware that employees are the real engine of the company.
Methodology People Analytics, also called HR Analytics is closely linked to Big Data and data-driven strategies since it consists of collecting and grouping a multitude of company-specific HR operational data, such as employee demographics, payroll data, performance data, and engagement data. And also data external to the company such as labor market data, demographic data, and much more.
The real strength of the People Analytics approach is its ability to recover, structure and analyze all this varied data so that the HR function makes better, informed decisions; such as obtaining information that will help the organization optimize its performance and that of its talents.
The obstacles today in the HR function
All these promises of digital transformation are fascinating, but in practice on the ground, implementation is not so simple.
First of all, there are business obstacles linked to data sensitivity, since the data used is linked to the employee. It is necessary to work closely with the teams delegated to the Data protection to know what is allowed to be analyzed and shared. THE GDPR (General Data Protection Regulation), implemented in 2016 at European level, forces companies to comply and particularly impacts the HR function. To be compliant, the GDPR requires us to define for each use case the points below:
- Define objectives – Have a specific, explicit and legitimate purpose
- There relevance and proportionality data – all data used must be justified by their interest and the scope well defined and respected
- A limited time retention – Define conservation over time according to need
- An obligation to quality and access security – The conformity of the data must be validated, all processing analyzed and access secured and restricted for each user.
A second obstacle is the lack of knowledge about the use of data. Indeed, very often business experts do not suspect that it is possible
- to consolidate all company data using efficient and secure tools (Data Engineering)
- to explore and implement use cases not yet explored (Data Visualization and Data Science).
Finally, there are the technical obstacles linked to data history since, very often, there are no Information Systems per se in the HR function, and all the data comes from different sources (finance, headcount, training, etc.). Storage is also a key point. It is necessary to be able to set a secure storage environment in order to consolidate the data, ensure its quality and exploit it. And finally completeness, because not all employees have the same seniority in the company, and certain data will not be available on the same history for each employee.
Multiple use cases
People Analytics represents a real gold mine to improve recruitment but also for talent management, HR development or even workforce and skills management. Here are some examples of uses:
Resource management
By relying on People Analytics, HR can, for example, identify skills needs companies in the five to ten years to come, and thus establish a recruitment strategy and new types of profiles to search for.
Optimization of the Training plan
Analytics makes it possible to measure the impact of training investment on business results. On the one hand, it is possible to quantify training performance (number of sessions, fill rate, cancellation rate, impact on employee performance, etc.)
On the other hand, it is possible to know the investment cost carried out on an employee.
Attrition
The phenomenon of attrition represents the flight of employees from companies. In order to reduce impact and costs of attrition, it is important to anticipate it. Data analysis makes it possible to understand this attrition phenomenon and to determine which employees are most at risk of leaving the company in the months or years to come depending on their position, workplace, age group. , skills for example. The implementation of a predictive model makes it possible to determine the departure probability of all employees and thus implement an action plan to retain them (ie. training, mobility, salary increase).
Talent Detection
By using internal and external data and based on the history of past developments, it is possible to'identify the talents of tomorrow, on the one hand in the company and during recruitment.
Interests for tomorrow
By allowing HR information to be cross-referenced with each other, but also with that of the company's other professions, analytics brings a new dimension to the HR function. Now able to align with business issues, its role becomes strategic for the company.
The HR function must rely on effective decision support tools in order to prepare the future of the company. The HR director of the future will have to be able to combining data science and business expertise. Predictive analysis is essential because it will allow companies to anticipate and, in this sense, it will become a valuable asset of HR policy in the years to come. We will gradually enter a new era where HR Analytics will be complemented with a machine learning approach, that is to say we will intelligently analyze what has already happened in the company to predict its future.
Interest in employer branding
Internally, employees therefore have the feeling that they belong to a well-defined group where collective work performance is highlighted and better measured.
Externally, the happier employees are and have the feeling of being taken into account in their work, the more they will be able to promote their company. The bond between the employee and his employer is in fact reciprocal: the trust of one reflects positively on the other. However, being part of the “top employers” is a powerful tool for attract, retain and hire the best talent.
And Aqsone in all this?
Aqson has been supporting its key account clients for 5 years on these People Analytics issues, from the reflection on relevant use cases, the implementation roadmap of such solutions, to the production of high added value use cases .
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