Why Big Data Makes Things Better for Employer
HR professionals and employers are urged to embrace the trend of big data as quickly as it has emerged. According to recent studies and surveys done by SAS and Towers Watson, big data analytics will be implemented in thousands of organisations by 2018. The Towers Watson survey also found that HR data and analytics is one of the top three tech spending areas.
Big Data Empowers Employers and HR Professionals
The rapidly growing trend helps decision makers to make informed choices instead of fumbling in the dark when it comes to hiring and retaining staff. If you are still not sold on the idea, here are four good reasons to embrace big data:
1. Narrow down the talent pool and avoid making bad hires
Many employers rely purely on repetitive cvs and instinct instead of strategic methods like making use of big data. Knowledge is power, and without it really bad decisions can be made.
In a survey done by CareerBuilder of over 6,000 HR professionals, it was revealed that a bad hire can cost as much as a whopping US$50,000. The expenses incurred when taking advantage of big data analytics is nominal in comparison. Potential employees are exposed through their social media profiles, online cv databases, employment records and previous applications. Even online challenges like Google’s Code Jam features in big data analytics, and are a way of distinguishing between the good-at-marketing-themselves and the really good hires.
2. Big data is a window into employees’ lives
By tracking and analysing employee performance data, and then sharing it employers not only gain insight into each individual employee, it also boosts employee morale and increases engagement. Companies are better able to identify the top performers in the company and give these employees the acknowledgement they are due. Problems are also detected at an early stage and measures can be taken before issues are compounded.
3. Improve retention
With big data employers have the opportunity to learn what causes employees choose to leave and what motivates them to stay. If something can be predicted, it can be prevented, which is why attrition rates can be drastically reduced by using tools like exit interviews, satisfaction surveys, team assessments and social media data. By knowing which conditions to improve, employers improve engagement, job satisfaction and ultimately also retention.
4. Improve training and development
The Association for Talent Development surveyed over 300 companies and discovered that an average of US$1,200 is spent on the training and development of each employee. In some instances there is no certainty of whether the training was effective or useful to the employee. To avoid wasting money on training and development, employers and HR professionals can make use of big data to establish where training is required, the effectiveness of training courses and whether the training was of benefit to the employee’s role in the company. Professional development using big data involves regular performance appraisals and across the board data storage.
In a Nutshell
Big data is not only a corporate trend; it has become an invaluable HR tool to companies. It can drastically increase chances of making good hires, help employers understand employees better, do wonders when it comes to retention and also assist with professional development.