Using Big Data for Improved HR Management

Traditional HR practices have tended to be based on present organizational needs across most companies. Whether it is a case of campus recruitment or lateral hire, functional managers typically make their requirements known and specify their job descriptions to fulfil their manpower needs.

There is often a mismatch as well, since the markets are generally candidate-driven and recruiters tend to make better offers to prospective employees to attract talent and end up with suboptimal hires or overpaid candidates for specific roles which can then lead to dissonance and exit of existing talent in search of matching remuneration elsewhere.

Statistics capture these cycles of entry/exit under the “natural attrition” rates which can compare well with the industry average and are thus not frowned upon by the Board.

Big data now provides HR managers a tool to hire, retain and channelise talent and contribute significantly to the strategic vision of the organization in a cost effective manner. This includes the employee, client and transactional data that is stored within the archives and is rarely analysed.

Employee age profile, education, experience, skills, performance ratings, prior roles etc. are readily available to HR managers in any large organization. So is the data on the present and potential clients, linked to organizational strategy and the deficits in talent that exist currently or will crop up in the future on the firm’s growth trajectory. Organizations also have easy access to social media and Government data related to their employees and clients. In addition key parameters and heuristics should be identified which can yield meaningful outputs from big data analysis. What is needed is integration and analysis of internal matrices and external benchmarks in the context of this data, to deliver a comprehensive solution.

The benefits of using big data analytics with the help of technology is that HR is in a better position to forecast and take insightful decisions, which lead to improved productivity, cost optimization, increased returns on human capital and higher revenues. These are achieved with better processes for matching talent with roles for new candidates, avoiding the clamour surrounding new recruitments and accurately formulated training programmes resulting in better engagement and retention.