Estimations are that no less than 6,400 organisations with 100 staff or more will have accomplished big data analytics by 2018, according to a 2013 SAS study of more than 1,200 businesses. A recent Towers Watson survey of more than 1,000 organizations found HR data and analytics are among the top three areas for HR technology expenditure.
The applications of big data and social media in HR are vast. For example, companies like The Container Store use wearable tech, designed to track communication patterns and preferences of employees, accumulate performance data and monitor communication trends with customers. This enables them to tailor communication with staff in different stores, deal with customer complaints more effectively and target key messages for staff as well as customers.
Xerox estimates that, with the use of big data analytics, it was able to cut its staff attrition rate at call centres by 20%. By analysing various sources of employee information, HR could more accurately identify issues that lead to lower employee engagement, and based on this, were able to target interventions to improve this.
With the use of big data and analytics, HR has an opportunity to become more analytical and strategic in acquiring candidates. 27% of employers indicate a bad hire cost them more than $50,000, according to a 2013 CareerBuilder survey of more than 6,000 HR professionals. Big data prevents big mistakes!
Because cost per hire is a key metric to monitor and control, big data and analytics can make a measurable impact in this area. Rather than relying on standardised advertising, response handling and repetitive resumes, hiring managers can utilise the following analytics to great advantage:
Given these developments the focus, skills and functions for in-house as well as outsourced HR practitioners keep changing, and it is indeed relevant to ask whether your hiring managers and staff can afford to be bogged down with repetitive, bureaucratic and paper-based methods of recruiting.
Reference
The Huffington Post
Top 5 HR Trends for 2016.
Why You Need to Embrace the Big Data Trend in HR. - Matt Straz