“HR is the new frontier for data science applications in business,” says Matt Ferguson, CEO of CareerBuilder. According to a CareerBuilder survey, 90% of CEOs believe it is important for HR leaders to be “proficient” in workforce analytics, and 35% believe it is “absolutely essential.”
We previously posted an article on Workforce Analytics 101, introducing readers to one of the hottest new trends in HR. In fact, we’d almost hesitate to say “trend,” which might suggest it’s only temporary. Workforce analytics – which is the process of using people-related data to make HR and business decisions – is here to stay. That article is a good place to start; but once you understand the basics, how do you get started? Here are three ideas to keep in mind.
Workforce analytics – sometimes also called “people analytics” – means using data to make workforce and HR decisions, but it’s actually a little more sophisticated than that statement might suggest. Many companies trade in plenty of data, but they don’t necessarily ply that data in smart ways. According to HR researcher Josh Bersin, founder of Bersin by Deloitte, “only 14% [of businesses] have done any significant ‘statistical analysis’ of employee data at all.” That analysis includes things like using statistics to make or back up hiring decisions, linking pay and incentives to production and performance, and more.