The growing role of analytics in HR can be attributed to the realization that employees play a far more important role in a company’s growth than we ever imagined. A lot of this realization is the result of fierce competition in the recruitment market to acquire the most talented individuals. According to Harvard Business Review,
“71% of CEOs surveyed believe that human capital is the TOP contributing factor to sustainable economic value.”
Talent analytics is a fast-growing area of HR data analytics, allowing HR to move quickly and methodically into the future. Changing business models and expectations from employees are underlining the need for talent analytics to manage the following key issues for HR:
HR is transforming into a strategic business function. Newer and more important responsibilities are being added to HR profile. However, recruiting, training, and retaining quality candidates remain HR’s main functions. Talent analytics ensures that you have a workforce that makes your business agile and delivers impactful outcomes.
Diversity and Inclusion
A diverse and inclusive workforce brings just so much more to the table. To have a more qualified workforce, recruiters need employees who come from diverse educational backgrounds, belong to different genders, nationality, and ethnicity, have unique perspectives and offer niche skill sets. Apart from all the qualitative benefits of having a diverse and inclusive workforce, companies also end up avoiding employee turnover costs with such diversity. But, to acquire such a talent pool, HR requires talent analytics.
Risk of attrition
HR needs to be aware of the quality of recruitment within the organization as well as compared to that of its competitors. More often than not, employees end up leaving an organization either when they’re unhappy with their current job or when they’re offered a better job elsewhere. Both these scenarios stem from missing out on some crucial recruitment patterns. Talent analytics brings such patterns to the surface.
Leadership potential assessment
Businesses today expect something different from their employees; something more than usual. The need of the hour is the ability to go beyond the job description, stay motivated while facing challenges, and think of the big picture. An ambitious organization would expect HR to find candidates that are ‘leadership material.’ But to find such leaders, HR requires massive data points on its potential candidates, including data on previous job performances. Nothing but talent analytics can provide HR such detailed information in a digestible format.
Examples of Talent analytics
So far we’ve talked about the need for talent analytics. Shared below are examples of some of the most pertinent talent analytics that HR should care about:
One of the first sources reflecting the health of your recruitment is your past and present recruitment activity. To have the best people on board, you need to know where you stand with your strategies. Talent analytics gives you a holistic view of your hiring performance, and when done with an ‘intelligent’ recruitment tool like Talismatic, you get a dashboard view of metrics like the ones shared below for your organization:
- Currently open positions
- Underperforming job postings
- Jobs closing this week
- Average job closing time
Talent analytics will, therefore, allow HR to:
- Consolidate hiring data
- Align organizational priorities
- Address recruitment bottlenecks
Any mature organization would prefer being proactive with its recruitment efforts and not wait for an employee first to leave and create a vacancy. Accordingly, HR keeps certain candidates in the pipeline and hires them as and when the need arises. But the right candidates are in high demand and aren’t waiting idly for a recruiter to approach them. So, recruiters must know where to spot their desirable candidates well in advance. Candidate spotting is another brilliant example of talent analytics. Talismatic’s talent analytics tells recruiters:
- Talent density across American cities
- Universities training students in skills they’re hiring for
- Industry sources they can poach passive candidates from
Recruiters can accordingly streamline their resources and strategies to focus on locations that promise better results.
Recruitment in silos is out of the question today unless an organization plans to shut down after a while. Competitor recruitment strategies have so much for HR to analyze and inform their endeavors. Talent analytics showcases its optimum potential in this example. Talismatic’s talent analytics leverages competitive intelligence to bring forth some of the most exclusive data like:
- Positions your competitors are recruiting for
- Average job closing time for competitor openings
- Skills and qualifications competitors are looking for
With such information at their hands, recruiters can:
- Compare recruitment capabilities
- Differentiate hiring strategies
- Measure overall performance
- Analyze market trends
The bond between Talent analytics and HR data analytics
HR data analytics is effectively a measure of the impact of HR processes and programs on organizational performance. An organization, however, cannot have an honest analysis of HR metrics unless all the relevant information for such an analysis is available. Talent analytics makes HR data analytics more informed and holistic to reach any conclusion on the success or failure of HR initiatives.
Talent analytics is a path-breaking dimension to HR data analytics and helps improve almost every business measure with effective decision-making. Recruitment tools like Talismatic are built to perform rigorous analytics of such kind and to deliver nothing short of intelligent and actionable insights.