Information digitalization and data analysis help to assess how efficiently a company operates. Special algorithms are able to not only simplify industrial processes but also solve issues related to the selection of proper personnel.
Advantages of Big Data for HR
Tools and methods of processing the array of information is called Big Data. They allow to analyze information regardless of its volume.
The advantages of Big Data are primarily used in marketing and business. The tool allows to assess the demand for certain products, predict customer behavior, and highlight key points correctly.
Using Big Data, one can analyze operations of company’s separate divisions and accept management decisions based on obtained information. Big Data is applied in HR operations just as well. They simplify the search for employees and select the best possible candidates for a certain position.
Besides, Big Data helps to:
- automate the selection of candidates;
- assess the efficiency of staff operation;
- speed up the adaptation period;
- increase the work performance;
- predict employee’s success;
- develop talents;
- retain valuable employees.
The most popular are metrics selecting personnel, training and assessing them, monitoring person’s career, and motivating valuable talents. Now, only 7% of companies are applying Big Data in the CIS countries, and this analytics is primarily descriptive.
However, it should become predictive due to the further integration of technologies: such an analytics should not only find employees but also prescribe in advance prospects of their career, as well as predict the efficiency of scheduled work. Therefore, Big Data will allow to receive information on how employees’ career will grow before they go to work.
Results of Big Data application in Human resources
Google was the first company to use Big Data. Assessing staff, it relies only on facts and analytics. The company even has a special department called People Analytics.
Due to Big Data, Google has found out that diploma marks are not related to the efficiency (or its absence) at work. Moreover, the company has managed to significantly reduce the amount of interviews, optimize the size of departments, as well as find the way to provide a parental leave so that employees won’t quit after it.
According to estimates of Evolv analyzing the activity of 3 million people in various sectors, the efficiency of employees depends on a browser they use. The analytics shows that Chrome or Firefox clients take time off 15% lesser than others and stay at one place of work longer. It is caused by the fact that such people are ready to find ways to perform their obligations better (these browsers are not installed on a computer as a default; they should be downloaded additionally).
Research also shows that the office location rather than, for example, the flexible schedule is more important for the majority of employees. People living close to the place of work stay behind after hours 58% longer. Remote workers are 1.5% less efficient than their office colleagues (and they need 20% more time for operations).
Big Data allows analysts to see that previously convicted employees are 1.5% more efficient than their law-abiding colleagues.
Big Data prospects in HR
Big Data solutions substantially simplify the operation of HR specialists. These tools improve technologies used in staff recruitment and talent management. Basic statistical software is enough to process data. It can be, for instance, a staff enterprise management system based on cloud services like Success Factors or common Exel.
HR specialists do not have to be programmers or have unique technical knowledge to successfully apply Big Data. They should know how to accept decisions, filter information, and determine the expected results.
A collaboration between HR specialists and Big Data programmers will be fruitful. In this case, HR managers will be responsible for content and programmers for the technical implementation of ideas. HR specialists should offer parameters to be included in the employee search pattern.
It is significant to understand that Big Data is a powerful and useful tool, but key decisions will be made by people (this aspect affects the efficiency of personnel management). Knowing that a half of employees want to leave the company is not useful for HR managers if they do not realize how to solve this issue.
Peter Cappelli from The Wharton School of Business gives an example when the program has failed to find any candidates for a good available position. The employer specified that candidates should have had experience in a certain position existing only in their company. Thus, the algorithm refused dozens of professional resumes because of the human mistake.
Algorithms and Big Data are efficient and useful tools for modern HR specialists. There is no standard set of metrics that will be efficient at any company, thus, HR experts should choose it personally.
Work productivity and company profit can be enhanced by using the analytics results rationally. Big Data tools can plan a personnel management strategy, take into account HR risks, rapidly adapt, and retain valuable talents for a long time.