Business Analytics

HRIS analytics have gotten a lot of hype lately, with many HR software vendors portraying analytics as the end all-be all of HR software features. While predictive analytics may be an extremely helpful tool when it comes to managing the people element of an organization, it is important to keep expectations realistic. Analytics can give a competitive advantage, but the feature is not a magic weapon that will skyrocket productivity and singlehandedly solve all hiring dilemmas.

Analytics are a progressive feature that many companies can benefit from. However, the degree of benefit from integrating predictive analytics into daily decision making may vary greatly from company to company.

Analytics and Staffing

Analytics can help companies figure out how to optimize staffing by comparing historical data to current trends and making recommendations. For example, if a retail store would have benefitted from having five additional employees during a peak season during the previous year, analytics may help hiring managers to recognize this need and hire temporary employees as needed. It is important to remember that external factors that the system is unaware of my also come into play, however.

Objective Recruiting

When analytics are employed during the recruitment phase, employee candidates may be asked to take certain psychological, skill, and personality tests. The information from these tests and from resumes may be run through the system against other candidate’s information so that the top candidates can be selected. By using a process such as this to identify top talent, human biases may be avoided in the first phases of the hiring process.

While applying analytics to recruiting can help large companies to more objectively move employees from one phase of recruitment to the next, this may be overkill for medium or small companies. If recruitment processes seem to be working well and the company culture is favorable, spending the time and money to add analytics to the mix may simply be unnecessary.

Predicting Turnover

Being able to spot patterns that lead to turnover can be advantageous. When analyzed and applied properly, predictive analytics may help organizations to change practices that are causing employees to quit or that are contributing to an unsatisfactory work environment. It is important that these patterns are reviewed and discussed before action is taken, though, as some patterns may be correlative as opposed to causational and an HRIS will not be able to discern the difference.