Analytics Supercharge Talent Management
Recruiting, engaging and retaining employees are the essential elements of talent management. To gain insights on how well people are performing and whether processes are operating at optimal levels, human resources specialists, executives and managers require metrics. Developing these metrics in turn requires analytics.
In our latest research in human capital analytics almost three-quarters (74%) of participants said that analytics for talent management are critical to their business efforts and that the areas of improvement most important for applying them are performance, retention and compensation. According to the research these analytics can benefit an organization in both general efficiency and productivity and roles in the workforce and management that were found in over half of organizations. Other analyses show that recruiting analytics now are critical to more than half (56%) of organizations and that among metrics cost per hire (important for 46%) and the candidate pipeline (37%) are two areas where they need more insights.
At the same time as these needs are evident, providers of talent management applications offer analytics that can be embedded into their applications. Having analytics in such con- text enables users to find direct methods for taking action or making decisions.
However, the research also reveals that the analytics process itself presents a challenge for many organizations: Only one-third (32%) are satisfied with their process. Prominent among the underlying reasons for this is that the data is not readily available (63%). Getting the data from the talent management applications is not an issue when analytics are designed for and integrated with the applications. Another barrier to a smooth process is the use of spreadsheets for HR and talent management, which 81 percent use significantly; more than half (59%) of them admitted the use of these desktop tools make it difficult to have accurate and timely analytics. These two issues influence almost two-thirds (63%) of organizations to invest in new analytics products for talent management.
Using analytics to define and track metrics and the key indicators derived from them can help leaders examine the range of talent management activities, including worker performance, compliance with regulations, and risk management and governance. In addition, visualization of the metrics and indicators can enable them to quickly ascertain how well talent management processes are operating; visualizations such as cockpit gauges, bubble charts and nine-box grids enhance understanding of recruiting, onboarding,compensation, performance, learning and leadership development. These capabilities should be part of talent management analytics.
Analytics for talent management also can promote a broader dialogue in the organization by incorporating collaborative technologies, which our research found to be a key technology for using with analytics in more than half (56%) of organizations. For example, discussion forums facilitate dialogue between both individuals and groups. With only one in five organizations satisfied with their current approach today, collaboration offers a new means of engagement across the business.
Analytics for talent management is evolving to provide much more than reports and pre- sentations; integrated metrics and visualization can enable assessments in context to de- termine where improvement should be made. We advise organizations to start by evaluating the analytic capabilities of their current talent management applications. Copying and pasting data into spreadsheets and creating presentations are no longer sufficient for analytics and increase the cost, time and risk of operating HR. Using analytics is necessary to engage talent and direct people toward maximum productivity and effectiveness. It is time for businesses to upgrade their capabilities before it becomes too difficult to attract and retain valuable members of the workforce.