When I started college, I came in as a Human Resources Management Major, but I did not realize the large area of opportunity within this field. After changing my major (a few times), I took an interest in Data Analytics and the ways that technology can improve business efficiency and function. However, what many people do not realize is that many Human Resources departments are actually implementing various forms of analytics and using more technology than ever before. Deloitte published “Global Human Capital Trends of 2016” stating that only 23% of respondents believe People Analytics is somewhat important while 77% of respondents believe it is very important. This is an increase in importance from what was found in 2015. When this practice first began, it was very simple and focused primarily on basic statistics of employees and applicants. Now, data scientists are working with Human Resources departments to take the skills that successful employees have and create predictive models. These models can then more accurately predict the future success of job candidates.
By implementing these predictive models, retention rates would improve, employee engagement could be increased, and there would be a higher return on investment when hiring new employees. By identifying candidates who are considered “high-flight risk,” companies can make a more informed decision for hiring to eliminate as much risk as possible. Eliminating this risk makes companies more efficient and saves them money when identifying potential clients. Allowing data analytics to predict potentially successful candidates based on personal characteristics and traits, streamlines the application process allowing recruiters to focus on the most promising candidates. By selecting the most appropriate candidates, employers would see increased levels of productivity and happiness in the workplace.
Data scientists are seeing this opportunity and many programs have been developed that show companies the analysis behind their employees. With many companies shifting towards cloud based Human Resources software for storing all employee information, this means much of the data is already accessible and can be analyzed. There are lots of opportunities to analyze people and their success in their roles at various companies.
This concept made me think about the practice of predicting people and what the science of data analytics is capable of. Data analytics is applicable in every aspect of a business and should be used to improve daily business functions. If data analytics can predict the behavior and success of people in the future, what else is data analytics capable of?