Are you ready to “Datify” Your Hiring?

Fifteen years of research and nearly 2,600 businesses surveyed is what it took to put together the Global Human Capital Trends 2014 report by Deloitte University Press. 140 pages, it is rich with information about how HR is rapidly evolving into a data-driven function, with the focus shifting from simply reporting data to:

  • Enabling businesses to make informed talent decisions
  • Predict employee performance, and
  • Conduct advanced workforce planning.

While 78 percent of large companies (with 10,000 or more employees) rated HR and talent analytics as “urgent” or “important,” 45 percent of the same companies rated themselves “not ready.”

So, what does this mean? It means that companies that successfully leverage analytics and big data will be positioned to outperform their peers in executing their talent strategies. While14 percent of companies now have some form of analytics capabilities, more than 60 percent are still stuck with a disorganized set of HR systems and no clear way to make meaningful data-driven decisions.

According to this report, the end of 2014 should show a marked improvement in building a talent analytics team that brings together multi-disciplinary skills, while developing a long-range plan to “datafy.”

Plan now, benefit later…

Keep in mind that a transition of this magnitude cannot happen overnight, but more than 60 percent of companies are putting plans in place now.

Examples of some high-value solutions include:

  • Understanding the characteristics of high performing salespeople to better select and
  • attract leading candidates
  • Identifying work-related factors that correlate to fraud and accidents, enabling managers to dramatically reduce loss by focusing on well-known patterns
  • Setting up an internal platform for veteran employees to find new positions within a firm by matching skills with jobs
  • Creating analytics models that understand and predict turnover so managers can more rapidly change work conditions or behavior to keep top people from leaving

One lesson learned

A global pharmaceutical company, highlighted in this report, was facing an extremely competitive talent market in China. It understood that it had to reduce workforce turnover to meet its growth targets. It embarked on a predictive analytics effort to improve retention, particularly among its sales force.

Using data from the previous three years, the company developed and implemented a model to provide predictive insights on critical sales roles for the company and pivot points that influenced retention. The model enabled prediction down to the level of the individual employee, identifying which variables were strong predictors of retention and turnover, and informing the development of focused retention strategies. For example, despite an intensely competitive talent market, compensation was not the primary driver of turnover.

Now, that we are in the last quarter of 2014, how are things looking for you? Are you building high-performance teams?

 

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