CHICAGO -- An increasing number of companies are using HR data analytics to predict business performance, making it one of the top trends driving change in human capital management.
In "HR Technology Disruptions for 2017: Nine Trends Reinventing the HR Software Market," Deloitte Consulting said human resources analytics is helping companies predict fraud and detect compliance violations, identify top employees at risk of quitting and find the drivers of unplanned absences among staff.
During an interview at the HR Technology Conference and Exposition, Josh Bersin, principal at Deloitte Consulting and author of the 49-page report, said more companies are using HR data to solve business problems.
"Companies now have vast amounts of data about their employees -- a lot of times in a cloud application," he said. "Now, they can look at, 'Why do we have sales productivity gaps? Why do we have fraud? Why do we have unplanned absences? Why do we have overtime in part of the organization versus the other?'"
While it has taken years to mature, people analytics is seeing "an explosion of growth" and is spurring human capital management vendors to acquire and develop the technology to meet the demand, the report said. "HR departments realize that their future is dependent on their ability to harness people data and build predictive analytics models," according to the report, released at the HR Tech Conference. In addition to HR data analytics, the other eight disruptions include a sharp increase in continuous performance management; real-time employee engagement and evaluation; video and high-fidelity for learning; and comprehensive recruitment management platforms that include analytics, applicant tracking and onboarding. Software for employee wellness and for managing teams and contingent workers are three more. Another game-changer is comprised of artificial intelligence, natural language processing and robotic process automation. The trends are not ranked in order of importance.
At the conference, Erica Volini, HR transformation leader for Deloitte Consulting, said she is starting to see a shift in the analytics markets and the focus of HR. Technology can analyze data and produce insights on its own, meaning HR can focus solely on taking action and effecting change, she said. Software can combine HR data with finance data and external data, as well as obtain root causes of certain issues, such as retaining top talent. HR data analytics is also being embedded into all kinds of HR systems, including recruiting, engagement, performance management, succession management and learning. "That's the evolution we are on right now with people analytics," Volini said.
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