Data generation has exponentially increased over the last three decades, and there has never been as much data in the world as there is now.
When we’re online, every move we make is recorded. Websites pay attention to what you purchase, the type of content you consume, and even your interests or hobbies.
While the vastness of available info might seem daunting, it presents a unique opportunity for HR professionals to make strategic business decisions. Let’s explore how HR professionals can harness Big Data (BD) and drive productive human resource decisions.
What is Big Data
The concept of BD has been in existence since the 1990s, but its interpretation and application have significantly evolved over the past three decades.
Big Data refers to sets that are far too large and complex for human processing or even traditional processing methods. Professionals must use advanced analytical tools like artificial intelligence and machine learning to successfully process Big Data.
Big Data is characterized by three main characteristics:
- Volume. Big Data, as the name implies, refers to unimaginably large amounts of data. Without further processing, BD wouldn’t make sense to our human brains. Think of it as being surrounded by the ocean and unable to tell one drop from another.
- Variety. Big Data also comes in different types and formats, including structured, semi-structured, and unstructured data.
- Velocity. In the modern technological age, data is generated at incredible velocities. Each social media interaction or bank transfer contributes to the massive amount of data we already have. Today, generating terabytes of data barely takes a moment, and this speed of data creation and gathering is a huge part of what makes BD a revolutionizing aspect of data analysis.
Using Big Data for HR Decision-Making
The key to leveraging Big Data for strategic HR decision-making lies in data analysis. Big Data, in and of itself, provides little value to an HR professional. Transform that data into succinct analyses of an organization’s HR landscape, and you have an incredible tool in your hands, opening up new avenues for innovation and improvement.
Big Data analytics are instrumental in the following areas of HR.
Recruitment and Talent Acquisition
Talent acquisition is one of the trickiest parts of being an HR professional. It is notoriously challenging to attract and retain top talent, but their contributions to any organization are immeasurable.
HR professionals can streamline the recruitment process by analyzing data from:
- Social Media;
- Job Boards;
- Resumes;
- Applicant Tracking Systems;
- Referrals.
And any other method the organization uses to source talent. Big Data can be immensely useful in helping HR departments determine which channels are the most effective for sourcing candidates and which channels they are better off not pursuing.
Performance Management
Assessing performance is a large part of managing an organizational workforce. However, performance management can sometimes be challenging for the HR department because of inherent biases.
Big Data can assist HR professionals by providing valuable, objective insights into employee performance through data derived from:
- Performance reviews;
- Productivity metrics;
- Project outcomes.
Employee Engagement and Satisfaction
Employee engagement and satisfaction are integral to any organization’s success. Employees who are happy, satisfied, and engaged in their roles will almost certainly yield more positive results.
Organizations can use data analysis to derive initiatives based on results from employee surveys, feedback platforms, social media, management reports, etc. Through such analysis, companies can curate initiatives that improve employee morale, increase retention rates, and develop an overall improved organizational culture.
Predictive Analytics for Turnover
A low employee turnover rate is instrumental to the success of any organization. Low levels of turnover indicate that employees are happy, satisfied, and loyal to the company. In contrast, high turnover rates can be a red flag, as they mean employees are keen on leaving—whether it be because of internal or external issues.
Analyzing historical employee data can help predict turnover rates and identify at-risk employees. This way, organizations can take proactive measures such as:
- Targeted interventions
- Retention strategies
- Adjusting organizational policies
- Providing mentorship and support
Through proactive action, organizations can foster an environment where their employees feel valued, engaged, and motivated to contribute to the company. Specific interventions that organizations can spearhead to improve turnover rates include:
- Employee Satisfaction Surveys
- Exit Interviews
- Career development and advancement opportunities
- Flexible work arrangements
- Recognition and rewards programs
- Manager training and support.
Diversity and Inclusion
As the world becomes increasingly globalized, the requirements of a modern workplace have also shifted significantly. Today, organizations must invest resources to ensure that the workplace welcomes all individuals.
Through Big Data analysis, organizations can track and analyze diversity metrics across the company. The HR department can work on tracking metrics like
- Pay equity
- Representation
- Inclusion indicators
And more. By doing so and paying attention to areas for improvement, organizations can develop better diversity and inclusion strategies. HR departments can also utilize data analysis to track progress and adjust or pivot when necessary.
Health and Wellness
Health and wellness are vital components of any HR strategy. Employees are the backbone of any organization, so it’s essential that their health and well-being remain a top priority of the company.
Organizations can look into data from employee wellness programs, insurance claims, and absenteeism rates and make adjustments based on their analysis.
A data-driven approach to health and wellness will improve results and lead to improved targeted interventions, which will lead to a more satisfied organizational labor force overall.
Challenges with Using Big Data
Like any technological tool that provides a competitive advantage, using Big Data in decision-making isn’t always an easy path. Here are some of the more common challenges HR professionals might face when using Big Data in the workplace.
By being aware of these challenges, you can better prepare and navigate the BD landscape.
Like any technological tool that provides a competitive advantage, using Big Data in decision-making isn’t always an easy path. Here are some of the more common challenges HR professionals might face when using Big Data in the workplace.
Understanding the intricate details of Big Data requires a high level of expertise. For this reason, it’s often beneficial to hire pitch deck consultants who are adept at breaking down complex data into actionable insights, thus enabling HR departments to make more informed decisions.
Data Quality and Accuracy
Meaningful analysis hinges on the quality and accuracy of data. In a field like HR, where data can come from multiple sources, it can be challenging to ensure it is accurate and of high quality.
Errors and data inconsistencies can impact the validity of any analysis, so HR professionals have to take extra care to preserve the reliability of their data.
Privacy and Data Security
By nature, HR data involves a lot of sensitive information, such as employee social security numbers, employment history compensation data, and other forms of personal information.
Using and analyzing employee info means taking responsibility for the safekeeping of their data—which can be an added challenge for organizations.
Skills Gap
Despite how incredible Big Data might sound for HR, the reality is that only a few HR professionals are proficient in data analysis. There is a limited pool of people who are adept in analysis and visualization and are also skilled HR professionals.
Organizations have to bridge the skills gap through:
- Training
- Upskilling
- Collaborations with data scientists and analytics professionals
And other such activities. By closing the skills gap, organizations can foster a group of individuals who are able to extract actionable insights from BD.
Ethical Considerations
As with any conversation surrounding data, we must remember how ethics impacts BD. Sourcing and handling vast amounts of employee data is an incredibly complex task. It involves seeking employee consent, being transparent about data use, and being accountable for whatever happens to employee info.
Organizations must ensure that there are clear ethical guidelines and oversight mechanisms when using HR data. That way, companies are able to reduce ethical risk and increase the likelihood of responsible data use.
Conclusion
The advent of Big Data has brought with it numerous opportunities for HR professionals. Through BD analysis, organizations can maximize opportunities and take advantage of patterns they previously never would have paid attention to.
Overall, Big Data has fantastic implications for the success of an HR strategy. With time, effort, and some adjustments along the way, organizations of any size can utilize complex analysis to their advantage.
