5 Steps to Transform HR with Predictive Talent Analytics

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Every story has a beginning, and the story of Human Resources began in the 1950s (remember Personnel?). A lot has changed since then: the technology boom, four workforce generations, drastic changes in world economics and in the way we all work. Because HR is still so young in comparison to other mainstay professions like law or medicine, it is still facing its first round of major changes.

Big data, performance standards, talent analytics, talent management, performance and employee data, these have all had a major effect on how HR functions since these data points didn’t even exist at the beginning of the HR story. While predictive analytics is new territory for many HR pros, there are some best practices around predictive analytics to help transform your HR department into a more agile and proactive organizational entity.

1. Assemble Your A-Team
First things first… You have to decide who is going to be on your team. Who has the skills and the knowledge needed? Which employees have the training to interpret the analytics? More and more companies have begun to hire specialized data scientists who have the skills and training to not only interpret the data but translate it as well. Travis Wright (@teedubya), a Chief Marketing Technologist, said:

“These specialists are a crucial part of ‘competitive intelligence,’ which is a new and quickly growing industry. The actual job description can vary from company to company, but the most common task is mining data (of course). ‘Big data’ was a big buzzword in 2014, but it will always remain a vital part of any company. Data is useless if it’s not ‘mined,’ which means optimally collected, analyzed, organized, and activated.”

Unfortunately, many companies cannot afford their own data scientist. Look for those who know their way in and around the HRIS or ATS and those with project management experience (since this will be a longer project than even self-professed “data geeks” will have the patience for).

2. Find Your Square One
Every stepping stone needs a benchmark. To move forward in the transformation, you have to understand your background. Likewise, talent analytics can’t become “predictive” without first assessing the current situation of your pipelines. Simply stated, HR leaders need to understand immediate needs to determine future talent needs. For the HR Professional, this means taking the time to make a map of the processes your department or team repeats over and over and then pinpointing efficiencies (or the lack thereof) in both process and tools.

3. Identify Valuable Numbers
There’s a lot of data out there for your business to look at. Just in an ATS alone, there are thousands of records, each with multiple data points. But you can’t analyze every piece of data that comes across the table or assign it the same level of importance. That’s why it is necessary to filter and funnel the kind of data you will evaluate. Key metrics should primarily involve internal data, but only the data that is truly relevant to your talent analytics. However, external data can be valuable when benchmarking within industries, creating compensation models and figuring supply and demand, so don’t throw it on the trash heap just yet. The primary issue for executives, however, is that only 27% feel they have the expertise necessary for talent analytics and only 13% have the systems to do so.

4. Sharing is Caring
Who needs to know the findings? Who needs to know the information you’ve just assembled? Stakeholders who have the power to make decisions based on this information rely on you to share the information so they can collaborate and make those decisions. That’s why these analytics need to be filtered, so they can be translated into actionable tasks. Beware sharing a messy pile of data points; instead, decide with your team what issues you need to identify and solve for X. Then deliver key insights that can translate into guiding parameters for your company.

5. Training, Training, Training
Big data has become prevalent in decision making. Talent analytics, as a facet of big data, is a predominant resource for HR professionals. They need to understand how data, statistics and analytics can benefit them in the hiring process and employee development processes. Offer your team training opportunities so they can develop their skills and become comfortable with that data. While there is a dearth of data scientists out there, analytics tend to be quite personal to the company, so train in-house and use your analytics vendors for additional learning.

Although HR is a rather young entity and still has a lot to learn, predictive talent analytics is the first major change specific to HR. This step creates an opportunity for organizations to become proactive versus reactive in their decision making. When you assemble the right personnel and define the starting point from which to benchmark, you can begin to share the data with stakeholders and train your HR professionals to analyze the data. These 5 steps can help company executives make the move toward data consumption as a way to influence their decisions based on a higher level of insight.

– See more at: http://blogs.infor.com/infor-hcm/2015/05/5-steps-to-transform-hr-with-predictive-talent-analytics.html#sthash.ymHbUAnw.dpuf

Originally Posted at: 5 Steps to Transform HR with Predictive Talent Analytics by analyticsweekpick

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