Other parts of this series:
- Human capital analytics ramps up business performance
- Human capital analytics helps organizations get smart about their future talent management requirements
- Human capital analytics enables organizations to improve their workforce management through better engagement and rewards
- Human capital analytics boosts staff retention by curbing absenteeism and combating employee attrition
The digital economy is forcing organizations to become increasingly flexible and agile. The ability to quickly identify and address new opportunities and threats is now one of the hallmarks of successful businesses.
Many organizations are making big investments in technology, and overhauling their operating models, to meet the challenges of the digital era. However, they often neglect to transform their workforce at a similar pace. Effective organizations need good leaders at all levels of management and highly skilled workers committed to continuous learning and improvement. This requires rigorous performance monitoring and sophisticated human capital management.
Human capital analytics marries big data and analytics technologies to provide organizations with critical insights into the attitudes, behavior and performance of their workers. Such information enables employers to align their human capital with the strategic objectives of their business. This is crucial in today’s fast-moving and highly-changeable digital environment. Furthermore, human capital analytics substantially improves talent planning, hiring and development, as well as staff engagement and the retention of key personnel. It maximizes the effectiveness of an organization’s workforce and enhances its ability to attract and keep the best skills available.
The advantages of human capital analytics stretch far beyond the human resources department. Well designed and carefully implemented human capital analytics systems and processes have the potential to dramatically improve business performance. Key areas of impact include:
Operations: Operational excellence can be attained by optimizing the workforce size and composition; curbing operating costs; cutting workforce development expenses; and reducing risk.
Customer-centricity: The quality of the services and experiences delivered to customers can be heightened by attracting and developing highly skilled personnel; quickening the time to competency; and improving workforce engagement.
Financial performance: Revenue growth can be boosted by improving the effectiveness of key leaders; quickly fulfilling strategic talent requirements; and boosting workforce performance.
Human capital analytics is not simply a set of tools for human resources professionals. It is a powerful suite of technologies and supporting services that can change the way an organization works and dramatically improve its performance. Human resources professionals, however, will need to embrace this analytics revolution and upskill or import the talent needed to make the most of this opportunity.
In my next blog post, I’ll discuss how human capital analytics can radically improve an organization’s talent planning and the acquisition of skilled staff.
Until then, take a look at these links. I think you’ll find them useful.