When you are managing a business, you are always assessing employee performance as it pertains to business goals. Talent analytics takes a granular approach to this by using big data techniques to analyze the company’s talent and predict outcomes.
Recruitment experts like Dave Fox, the founder and CEO of Focus Global Talent Solutions, believe that employees are a company’s greatest asset. However, this is usually the most underanalyzed component of the business. Think of it like this: As a doctor, you wouldn’t ignore the brain when assessing a patient. So as a business owner, it’s vital that you analyze your talent just as you would your profit, expenses etc.
When used correctly, talent analytics can be HR’s most valuable tool to improve business outcomes and employee retention. For instance, the Harvard Business Review (HBR) reported that a .1 percent increase in employee engagement would result in $100,000 more profit annually at Best Buy. So imagine how much more profit you could generate at your company?
The Implementation Process
The adoption of talent analytics in any organization can be tricky. It’s a multi-step process that requires a joint effort between all departments. For the data collection, organization and analysis to begin, everyone needs to be on the same page. This means holding a meeting with all essential personnel to discuss the process, the purpose and individual responsibilities. Typically, HR leads this charge and serves as the main point of contact.
Tackling the Data
It’s time to dust off that data and give it some TLC.
You probably have more data about your employees than you think you do: performance rates, turnover rates, salaries, absenteeism, overtime hours. However, here comes the hard part: the data is probably scattered on different platforms and organized differently by each manager. The biggest hurdle here will be consolidating the data on one platform so it can be organized accurately.
Once the data cleanup and an analytical table have been prepared, next comes the fun part: the analysis. The best – and perhaps the quickest – way to start is by using a data visualization software. Who doesn’t live a graph bar or pie chart? This helps better understand the data and gather quick insights.
Deployment Based on Findings
Once you have a holistic view of the company in its current standing, you can start implementing practices that will minimize costs and maximize benefits. For instance, offering incentives may be the implementation that drastically increases performance. In other cases, adding co-working spaces that foster a more collaborative environment might drive better outcomes.
As Fox says, as you identify which variables have the most impact on employees’ performance and motivation, you can improve their overall satisfaction and retention.
When used correctly, talent analytics is a tool that not only helps current talent but is also useful for recruitment purposes. Fox believes that it can help recruiters make informed decisions to attract talent that will complement the current staff.