The Big Data trend has gradually entered HR Technology, and HR professionals should accept it with zeal.
According to SAS study of over 1,200 businesses in 2013, it is estimated that 6,400 companies with around 100 employees will use big data by 2018. Also, it was found in Towers Watson survey that in last year, HR data and analytics is the top HR technology that companies were spending on.
Why is big data a big deal? It allows employers and HR professionals to make better business decisions by gaining more information. Here are the reasons to embrace big data as an important HR technology:
1. Improves recruitment
Rather than relying on resumes with limited information or assumptions while recruiting candidates, it is better to use big data analytics to know precise details about the candidate. It provides you information regarding candidate’s social media profiles, records of employment, job applications, and their online presence.
Frame a screening process that will analyse candidate’s personality with the help of big data. This will help employers to get more information apart from their work experience and skills, resulting in better hires. According to a survey, 27% of Human Resources manager admitted that a bad hire costs them over $50,000. So, big data can prevent big losses.
2. Retain productive employees
Big data will also inform the employers about why employees leave the company or why they stick to the company. There are HR tools like job satisfaction surveys, team evaluation, exit and stay interviews that help HR to foresee employee abrasion.
For instance, Xerox used big data analytics to decrease employee abrasion rate by 20% at its call centers. By using such techniques, Human resource managers can know the reason behind lower employee engagement and take necessary actions to make their employees more engaged.
3. Analyse performance
State of the industry survey by Association of Talent Development in 2014 stated that employers on an average spend approximately $1,208 for training and development of each employee. It includes formal training programs, lunch-and-learn, professional development events and various seminars.
Big data can help employers to know the effectiveness of those training programs and how employees are implementing it in their tasks. Employers can analyse the number of participants in the training and development events and measure its outcome. This data will also help in conducting performance analysis and in providing an appraisal.
Thus, big data can help employers and Human Resource professionals to hire better talent, retain them, and provide better training while evaluating the performance of existing employees on regular basis.