Data Analytics: HR’s Untapped Superpower

The use of data analytics in business settings is nothing new. Fine-tuning product launches, sharpening pricing, optimizing productivity and addressing supply chain issues – data has been a catalyst for growth and efficiency.

From Gut Instinct to Data-Driven Strategy

But in HR? It’s been a quieter story. Recruitment, retention and benefits have traditionally leaned on sharp instincts, industry know-how and a knack for reading people. These are skills HR pros have honed to a fine art.

HR professionals have been slower to adopt data science. A recent survey conducted by LinkedIn spilled the tea: 71 percent of HR leaders see the potential in data analytics to supercharge their work.

However, only 22 percent of the participants said their companies either use — or plan to use — analytics. But this is expected to change — and quickly. According to the global research firm IDC, AI-based hiring is expected to increase 6.2 percent annually through 2034 as companies vie for the next generation of talent in a tightening labor pool.

The old playbook – scanning resumes and hoping for the best – can’t keep pace.

Data analytics, turbocharged by AI, is ready to hand HR the keys to a whole new level of impact, turning a skilled craft into a strategic powerhouse.

For most HR professionals today, data analytics still has a shroud of mystery, but it is in fact a valuable tool that should be harnessed.

Through the introduction of AI tools, retrieving and organizing actionable data from internal and external sources is now far easier. And the insights this information presents can be transformative for both the HR department, and for the business as a whole.

Recruitment Recharged: Precision Meets Instinct

Instead of just sizing up a resume or LinkedIn profile, imagine you’ve got a data engine pulling intel from every angle. This includes past gigs, public records, even social media. You can build a full picture of a candidate in seconds. Then predictive analytics step in, spotlighting the candidates that are the best fit for the role.

Pair this reporting with HR’s human touch, and you’ve got a hiring process that is less guesswork and more bullseye – increasing the chances of a successful hire.

Performance Unleashed: Insights to Empower

Data analytics goes beyond hiring. It’s not just for recruiting; they shine a spotlight on what’s really happening.

For instance, metrics like productivity, goals gaps and attendance trends cut through the noise. HR leaders can compare employee and departmental productivity more clearly using these insights.

Using this data, HR professionals can work with managers to course correct in real time. They can identify employees who may need additional training and intervention, or spot processes to be perfected.

When properly applied, this analysis can lead to stronger teams, better employee outcomes, higher retention and a satisfied—and invested—workforce.

Future-Proofing the Team: Workforce Forecasting

What if you could predict tomorrow’s needs today?

Data analytics make it happen. By blending historical patterns, market shifts and business goals, HR can map out exactly how many people – and what skills – the company needs down the line. Predictive analytics generate information that enables HR professionals to make solid forecasts about the number and make-up of their workforce at any given time.

The movie “Moneyball” illustrates one of the best examples of predictive analytics in action. In 2002, Billy Beane, the general manager of the Oakland A’s, faced the challenge of staffing a quality baseball team. Three-star players had departed, and the team had a razor-thin budget. Beane relied on predictive analytics to identify under-the-radar players who were productive and affordable. The payoff? A stunning 103 wins, a division crown and a 20-game winning streak that made history. Data didn’t replace gut instinct; it amplified it.

The Big Win: HR’s Strategic Spotlight

Here’s the bottom line: data analytics isn’t just one more thing to do, it’s HR’s ticket to the big leagues. It moves HR from transactional to strategic and positions it as a valuable partner in the C-suite. Recruitment gets laser-focused, performance tracking gets actionable, and workforce planning gets visionary. Simply put, HR’s use of data analytics will turbocharge the team’s skills, insight and drive, making the entire HR department more strategic and more essential to company success.

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