It is increasingly common for companies to use Big Data to organize all the data produced by the organization to simplify tasks of great importance. You cannot just rely on intuition, or waste time sifting through information to plan or make decisions, can you?
However, not all companies and their human resources department are aware or convinced of the benefits of using Big Data. While the concept is widely used in marketing, operations, and other areas key to a company’s success, Big Data for Human Resources is still something new.
That is why we present in this article what Big Data is and how it can help with data analysis by providing information on diverse management processes and indicators in a faster and more assertive way. If you want to learn more, keep reading and you learn to apply Big Data on human resources.
What is Big Data?
Big Data is a term used to designate a large volume of data obtained from various sources, so that, through its crossing and analysis, we obtain information that contributes to improving decision-making.
How can HR use Big Data?
Now that you understand how data warehousing works, you should know how important it is in terms of human resources, as it has become an indispensable tool for managers who want to optimize their selection processes and maximize their results.
Do you have any idea of the type of data that the human resources area stores or accesses? For example, records about the employee’s routine, candidate resumes, internal surveys, company work profiles, etc.
Simply, this data could be stored without a clear purpose, but with the use of Big Data in human resources, it is organized and becomes a source of relevant information that provides metrics and insights on the operation of the sector.
What are the main applications of Big Data for HR?
While Big Data is used in marketing to collect and analyze data about customers, in talent analytics it collects and processes data from current and potential employees of the company. The goal, in most cases, is to optimize what the company spends on its employees to answer questions such as:
■ Where does the company money go?
■ Can this resource be better invested in another industry or activity?
■ Does the company make the most of the money spent on its workers?
These and many other questions find an answer in Big Data and can be used to improve processes in human resource management, as we will see below.
Perhaps one of the most difficult tasks in Human Resources is increasing talent retention among employees. Companies with high turnover rates end up spending precious money on employees who do not stay on the board for long, wasting resources.
With Big Data for HR, HR professionals can gain a better-defined profile of leaving employees and detect trends among them. At the same time, it is also possible to identify patterns among the people who choose to remain in the organization and create a management model that takes advantage of these favorable factors and prevents the same trends from reproducing as with the first group.
Smarter hiring processes
When the company searches for new employees, it can check the data provided by applicants on job search websites, as well as on social networks such as Facebook and LinkedIn, to find people with the qualifications they want.
Big Data for HR is a crucial component in finding the right people for the different positions within the organization. Its functionality goes beyond a simple list of criteria, since each business is different.
For example, through Big Data you can find out if people who have relevant work experience are more likely to stay in the business long-term, or even if their previous experience could affect the performance of employees in the current job.
Therefore, based on these results, the company can focus on the most relevant factors at the time of hiring. Data will vary from organization to organization, so companies should conduct their own analysis for recruitment and training purposes.
Big Data can also help ensure that employee performance is more accurately measured, thereby determining, for example, what time of day the company is most productive.
Of course, it allows you to identify the best employees even if various factors are attributed in the evaluation. In a component factory, for example, Big Data would make it possible to verify who produces the most parts, but also who produces them with the highest quality, avoiding waste.
Therefore, the company can define what kind of behavior it requires from its employees through incentives, training, and other resources.
It is a great challenge for HR to keep all company employees trained and updated in what is relevant to each area. Therefore, it is necessary to identify together with responsible managers the level of mastery of the employees in the skills and knowledge required to perform adequately in their position, and from there provide the necessary training.
With Big Data solutions for HR, it is possible to analyze the results of training in improving employee performance, as well as evaluate the quality and use of the training provided.
Human resource management has a lot to gain from combining technology with its daily tasks, such as more agile processes, reducing costs, and delivering meaningful results. Big Data is a true facilitator in decision making.
Explore data, have consistent analytics on hand, and discover insights by leveraging the insider information accessed by HR.
If there is something that we can call “the future of human resource management”, it is Big Data for HR.
When we speak of Human Resources, we refer precisely to the area responsible for the administration of workers. In its management process, it collects useful data for the analysis of its own operation, which, if well used, allows it to implement considerable improvements, modernizing the sector and making it increasingly efficient.
For example, employee’s productivity bonus calculated with basis on Big Data analysis benefits both managers and employees, who feel more satisfied when they are valued and respected for their performance.
Data analysis also allows you to create increasingly effective HR strategies, and Big Data helps the company understand what the best alternatives are to implement in a variety of projects, for example:
■ How likely are employees to collaborate on new measures or company changes?
■ What are the expectations of employees regarding the benefits offered by the company?
■ What skills is the company looking for in its new candidates?
It is a worthwhile investment because the results are real and positive. All this thanks to the collection of relevant data in a fast, practical, and reliable way. Only Big Data can help your business interpret them.
We hope this article has served its purpose and is of great value to you. Do not waste any more time! Consider the use of Big Data tools in the Human Resources area of your company and take advantage of the good results that will be produced.