HR analytics was first conceptualized in 1911 in the book ‘The Principles of Scientific Management’ by Frederick Taylor. Since then, it has become a prominent aspect of people management. Its application in performance optimization, employee retention and employee engagement is unprecedented. However, HR analytics has contributed in a multitude of ways to improving decision-making. Its scope is expanding and spilling into other areas of business. Many organizations are uncovering ways to use their
people insights to inform decisions that have nothing to do with hiring.
Applying HR Analytics to Identify a New Office Location
The tech giant Cisco demonstrated that the use of people analytics can take many different shapes and forms. The company used data to guide its decision on choosing a new office building location, optimize space and build a positive culture right off the bat.
Powered by the company’s data from across its 266 offices in 87 countries, the
people analytics team got into action to identify usage rates and costs in the organizations. The team took into consideration the neighbourhood and community around them to assess the business outcomes. The team went over and above to examine the availability of talent from nearby universities in relation to the areas their competitors served.
Predicting ROI on an Apprenticeship Training Program
Multinational energy provider, SSE, deployed an in-depth analysis of their trained apprenticeship program to calculate ROI. It not only enabled the company to make a business case for its apprenticeship program to senior management but also see the true value of its initiatives through a financial lens.
SSE discovered that every £1 invested collectively by the individual, society, and employer in a fully trained apprenticeship yields a return of £4.29 to the economy.
Making Diversity More Than Just a Buzzword
The carpool service, BlaBlaCar, used data analytics in HR to review job applications that were comprised of biased language and messaging. The company also structured its interviews in a way that was inclusive, a tactic that helped them convert candidates into employees and increase the diversity on their teams.
London-based survey company Saberr employed HR analytics to explore candidates’ behavioral compatibility, core values, and diversity to identify if a candidate will feel welcome in an organization and the strength of their interpersonal relationships.
Beyond the Hiring Horizon
A 2019 study by Chalutz Ben-Gal discovered that recruitment and workforce planning are the two areas of HR that yielded the highest returns. By using data to fuel insights outside of hiring and people management, some organizations are demonstrating the innovative ways that HR analytics can power business outcomes.
Whether to pinpoint a new regional office, assessing investment decisions or spearheading
diversity and inclusion, leveraging people analytics is a matter of thinking outside the proverbial box and maximizing the combined power of people and their behaviors to drive innovation.