Talent analytics — the application of statistics, technology, and expertise to large sets of people data — is used to gain insight into performance and potential throughout the employee lifecycle, enhance employee experience, and drive business performance.
Leveraging talent analytics for business growth is fast becoming a global trend. It is no longer sufficient to rely on gut instincts alone in developing business strategies and making strategic business decisions. With transformative and innovative technologies that characterise today’s digital age, businesses have been provided with many cost-effective ways of gathering people data and utilising them for business growth and advancement.
A few years ago, only a few leading companies were taking advantage of analytics to drive business performance, but now, a growing number of companies are applying analytics to all aspects of human resource management such as recruitment and performance development. This has proven to be of immense benefit in uncovering surprising sources of talent providing counterintuitive insights into what drives employee performance.
A company’s performance is linked to the capabilities and motivations of its people, hence, their continuous quest to discover more effective ways to drive business performance by aligning and positioning the right talent in the right place and at the right time. To do this successfully, Talent managers and business executives have to use data to gain insight into performance relationships of the workforce and develop smarter strategies.
By effectively analysing employee data, companies are beginning to understand how to ensure maximum productivity, engagement, and retention of top talent, and then replicating their successes.
Talent data informs people decisions such as the right employee for the job, the right number of staff to deal directly with clients or customers, and the factors that drive employee engagement. A company can also employ analytics to hold itself accountable for the things that matter the most to its employees.
A strong people analytics culture leads to good business outcomes. It helps companies visualise how the movement of talent impacts hiring decisions, cost models, career-path initiatives, succession plans and risk management. This information is then used to guide business initiatives.
To derive maximum benefits from talent analytics, companies will have to ensure the following:
- Build capability in gathering high-quality data
- Establish an organisation-wide access to data (not confined to just HR)
- Build its leaders to utilise data in making strategic decisions
- Set and focus on strategic targets
- Convert all analytical theories into practice.
By using data to gain human capital insights, workforce forecasts and analytical HR insights, companies can build a hard-to-replicate competitive advantage and develop new techniques for improving business results.
Executives who can complement experience-based wisdom with analytically driven insight are at a better advantage of driving business performance.