What do Google, Netflix and Facebook have in common?
If we asked that question to a room of 100 people, there’s a good chance we’d get 100 different answers. So let’s refine the question: What one thing have Facebook, Netflix and Google, Netflix and Facebook got in common, without which their businesses would crumble in an instant?
Before you answer, here’s another question: What’s the one thing that’s sitting right under the nose of every HR department that only very few have figured out is their secret weapon in the fight for business success?
The answer to both questions, if you haven’t guessed by now, is data. Big Data, to be specific. These three tech behemoths have built their businesses on the ability to capture and utilise vast amounts of data on their customers. It’s what drives their business models, it’s what drives their products and it’s what drives their success.
And by now, HR teams should have learned a lesson or two from them!
Whether you’re making use of it or not, your HR department is sitting on a mountain of fantastic data. Making effective use of this data can be the key to demonstrating the impact the HR department has on the wider organisation. That’s why HR analytics is so important.
As Harvard Business Review states, HR analytics is all about “establishing a cause-and-effect relationship between what HR does and business outcomes … and then creating strategies based on that information.” Not only does HR analytics help HR to clearly prove their business worth, but by using predictive analytics models, HR can devise business strategies that will help drive success and growth in the organisation.
Sadly, 77% of HR departments have no idea how their workforce potential affects the business growth and Deloitte reports that only 8% of companies consider themselves capable of developing predictive data models.
In the same way that sales and marketing teams use analytics to predict what customers like and what their purchase habits will be, HR can use people analytics to predict future behaviours of their own workforce. Here are three ways predictive analytics can become your secret business weapon.
Savvy companies are using advanced HR Technology to make the most their HR data and uncover all kinds of insights into how their workforce is operating and what kind of trends are emerging.