“Talent is now the most scarce and valuable commodity on earth, so companies who really understand how to attract, retain, and manage people will win.” - Josh Bersin, principal and founder of Bersin by Deloitte, Deloitte Consulting LLP. (1)
It is undeniable that the demand for talent across the business world has been picking up for the past few years, and the things employees value most have shifted as well, partly because of generational attitudes and partly because new technologies redefining the workspace.
How can HR departments effectively respond to this challenging business environment? Part of the answer can be found through the use of People Analytics. By analyzing the personality traits and intrinsic motivations of current talent, companies can make data-driven decisions related to hiring, employee development, retention, and team selection to ensure that an organization is successful now and in the future.
“HR and People Analytics have the potential to transform the way organizations hire, develop, and manage people” says Jason Geller, principal, Deloitte Consulting LLP. “Leading organizations are already using talent analytics to understand what motivates employees and what makes them stay or leave. These insights help drive increased returns from talent investments, with huge consequences for the business as a whole.” (2)
Although People Analytics has the potential to deliver significant value to an organization, the adoption by HR professionals has been slower than expected. Common reasons for hesitation in People Analytics implementation include:
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A perception that HR teams are not yet staffed with individuals who are fluent in the collection, aggregation, comparison, and analysis of various datasets. Additional training may be required around the skills needed to translate People Analytics into decision-making insight. However, some People Analytics solutions are designed specifically for non-technical leaders in order to empower them with critical human capital insights and real-time analysis.
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A lack of awareness regarding the variability of People Analytics solutions. That is, some platforms are easy to use and responsive for non-technical users, and others are not.
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A belief that People Analytics will require a lengthy implementation process with significant IT resources. In actuality, some applications can be implemented in a few days, at most, and without the need for internal technical support.
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A concern over limited access to the data required to power People Analytics solutions. Relevant data related to individuals and teams can be efficiently collected by many advanced People Analytics providers.
Once appropriate data have been collected and an advanced People Analytics platform in in use, HR leaders will be able to:
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Rapidly assess and analyzing hundreds of candidates for an entry level position and predict potential fit for future positions.
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Conduct career-path and bench-strength analysis for existing teams.
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Compare recently promoted senior leaders to their new teams or predicting the fit of potential managers with various teams.
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Identify high-potential candidates for emerging-leader programs.
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Target onboarding programs to suit maximize each new hire’s development.
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Assembling teams with a proper mix of strategically focused individuals who can facilitate, implement, and execute.
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Mine existing talent pools (full-time, part-time, and contractors) for people that can fit a wide range of positions.
People Analytics plays a critical role by supporting a full range of talent-planning and talent-management strategies. Many of the current challenges and barriers can be overcome once HR leaders commit to embracing a technology that enables when to answer the big questions and gain tremendous competitive advantages.
Sources
- Nov. 4 2014 – The People Analytics Market Heats Up With New Cloud Offerings.
- Managing Talent Costs with Talent Analytics Technology – Deloitte CFO Journal.
To learn more about Caliper and special discounts to TMSA members, visit www.calipercorp.com/tmsa
To learn more about how people analytics can enhance your talent management process, visit www.calipercorp.com or email info@calipercorp.com.
Caliper is a human capital analytics company leveraging decades of data and validated assessment results to predict and select high-quality candidates. Caliper partners with all types of organizations, industries, and sectors – from Fortune 500 companies to small businesses and from government agencies to non-profits. We help companies reduce the risk of bad hiring decisions; build high-performing teams; and engage, develop, and retain their employees. Contact us to learn more.
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