Human Resources experts, well-versed in psychology and organizational development, have been relatively slow to integrate analytics into their operations and decision making. Once HR leaders realized benefits of advanced analytics, interest in the area quickly increased as you can see explosion in google queries above.
HR analytics enables HR managers to improve their operations and decision making with data. HR analytics enables HR personnel to run advanced analytics to enable:
Improved HR performance
- 1- Improved hiring: Running machine learning algorithms on existing workforce allows companies to identify which traits lead to success. However, this may also formalize existing biases in the company. Therefore HR managers should question machine learning outputs and make sure that irrational past biases based on attributes like gender or race do not get incorporated into the decision making. Once managers know who will be the right fit for the company they can shape their brand building, outreach and candidate engagement efforts accordingly.
- 2- Improved retention: Running machine learning algorithms on churn data can uncover churn patterns and predict employees who are likely to churn. This can enable HR to manage churn proactively. Such insights can also help improve onboarding, training and performance management systems if they cause issues which can trigger churn.
- 3- Objective performance management: The dreaded mid-year reviews end up being subjective and demotivating. Granular performance data can be used for objective, frequent and automatic feedback which can support face-t0-face reviews backed by data.
Improved understanding of the company and its progress
- 4- Better understanding of productivity and motivation: Uncovering what drives motivation and productivity can help shape HR strategy, including training, performance management and other HR policies. For example if productivity of remote workers can be analyzed, then company’s policy of remote working can be fine-tuned.
- 5- Better understanding of company culture: Sentiment and network analysis of anonymized communication between employees can help HR managers understand company morale and culture in detail. Since this requires analysis of confidential and personal data, care needs to be taken to ensure anonymity.
- 6- Accurate record of progress: By tracking key HR data over time, companies can compare themselves in different time periods and observe changes.
You can also check our data-driven lists of:
If your company is not working with an HR analytics solution provider already, this is a good area to investigate. Additionally, you can check out AI applications in marketing, sales, customer service, IT, data or analytics. And If you have a business problem that is not addressed here:
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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