With the advent of digitization, every financial organization is looking for resources that could help them update their legacy systems, improve operating effectiveness and customer experience. To tackle the challenges posed by the digital economy, financial services firms need a workforce that can manage the change efficiently. Therefore, attracting and retaining the skilled workforce is the need of the hour for the financial services sector to compete and innovate in the digital environment. However, financial services firms find it extremely difficult to effectively manage their workforce that can help them combat security issues, deal with increased regulations, and manage big data effectively. This is where HR analytics solutions can help. By leveraging HR analytics solutions, financial services firms can make smarter, more strategic, and well-informed talent decisions.
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The client, a leading Swiss financial services firm, was facing difficulties due to data silos that were affecting their agility. This prevented them from integrating structured and unstructured datasets to draw insights on the potential of the workforce. The client was looking for a smart approach that could help them globalize their processes so that everyone could leverage the same data to make crucial decisions. The existing performance management system of the company was not able to deploy an effective process to identify high potential (HIPO) employees. Furthermore, the financial services company was facing a high employee turnover annually that affected efficiency and productivity, leaving a terminal impact on employee engagement.
Talk to our HR analytics experts to figure out how they can help you move towards evidence-based decision making and identify reasons behind talent attrition.
Solutions Offered and Value Delivered
To help the client tackle their core business challenges, Quantzig’s team of HR analytics experts adopted a three-step holistic approach. The first phase of HR analytics engagement focused on organizational data exploration. In the second phase of the HR analytics engagement, the experts identified and used employee data to accurately identify the factors for attrition, retain efficient employees and reduce overall attrition related costs. The third and final phase of the HR analytics engagement revolved around utilizing valuable insights gained from employee data to map and visualize internal and external networks of an employee relationship.
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Quantzig’s HR analytics solutions also helped the client to:
- Analyze the tenure, work experiences, and managerial connections of top performing employees
- Gauge the drivers of the successful onboarding and retention of new hires
- Improve employee engagement rates by 17%
Why Choose Quantzig as Your Next HR Analytics Solutions Provider?
Quantzig is committed to offering cutting-edge HR analytics solutions that help organizations to institutionalize data-driven decision making and tackle complex challenges. Our HR analytics solutions include statistical approaches and platforms that can help you accelerate your journey from data to decisions. Quantzig’s flexible HR analytics solutions help companies to automate their HR management processes by integrating structured and unstructured datasets to extract valuable insights. This can help companies make better data-driven decisions to match people with desired requirements and hire the right candidate in the workforce.
Our HR analytics solutions can help you create a more consumerized work environment that can deliver better business outcomes. Learn more.
Organizations now have access to more data than ever before, but unless companies decipher how to bring this data to work it proves to be absolutely useless. Understanding the benefits of big data is not as simple as putting all the data in one place. Their real value can be harnessed only through specific big data use cases and applications. Those applications tend to vary widely across departments and industries. While there are several technical challenges associated with integrating and managing all of this data, organizations should first take the time to identify and crystallize the right benefits of big data for their business. Let’s delve into some of the key big data use cases for modern businesses that we have identified with several successful customer deployments:
Top big data use cases for business
With hundreds and thousands of search queries and customer databases, it often becomes difficult for e commerce companies to optimize their customer’s shopping experience. This daunting tasks of collecting, processing, and analyzing shoppers’ behavior and their transaction data open up a plethora of opportunities for big data in e-commerce. Using a powerful search and analytics platform e-commerce companies can clean and enrich product data for a better search experience on both desktops and mobile devices. They can also use predictive analytics and machine learning to predict user preferences through log data, and then personalize products in a most-likely-to-buy order. This would ensure maximum conversion. Quantzig’ s customer analytics solutions provide customer insights to drive sales and improve revenues through acquisition, growth, and retention.
Today, human resource is witnessing the arrival of two major names, one is big data and the other is hiring analytics. Many organizations are accepting the progression of these two dominant twisters in their HR practices and policies. The efficacy of HR analytics tools and big data is allowing organizations to dump the concept of intuition-based decision making. With the help of such analytics, decision-making has become more accurate and effective. Employees being the central pool of any organization, need to be taken care of and the HR department is responsible for every aspect of this pool. Thus, the HR acts as a data collector for the organization who collects information regarding the hiring requirements, salaries, attrition, and so on. But all the useful data will remain in silos or scattered without the proper use of HR analytics tools. With the aid of these tools and big data, companies can interpret this gathered data and turn it into useful insights. There are several benefits of HR analytics tools that can be the driving wheel for business growth. Let’s take a look at those benefits:
Benefits of HR Analytics Tools
Better hiring decisions
HR analytics tools help in making predictive analysis easier and allow HRs to make better decisions that are based on historical data. There are some great HR analytics tools that can create the difference by enabling the HR to choose the best candidate to hire from the historical data. Additionally, these tools allow the recruiter to know more about candidates through applications, records, online resume database, social media profiles, etc.
Better identification of retention rate
HR analytics tools help in identifying the retention rate of the employees. It helps the company to know the real reason for employees leaving or staying in the organization. The reason could be many, such as compensation, under-performance, lack of skills, or anything else. It also helps in finding the problem areas of employees and skill gaps. The HRs can use various HR analytics tools like team assessments, employee satisfaction surveys, exit and stay interviews to derive the reason behind employee attrition and design the strategies to retain them.
Improved insights into employee’s professional life
HR analytics tools help the company to track employees’ professional life by sharing and analyzing the data related to their performance. This is the reason why organizations record and track employees’ behavior with the co-workers, customers, and how they spend their time. Such data not only provides better insights about the employees but also helps in shaping strategies to motivate employee retention, morale, and engagement.
HR Analytics Tools
Here is the list of some tools that businesses mostly use to enhance their HR performance:
- Talentsoft Analytics
- Aurion Analytics
To know more about HR analytics tools and their benefits
Most organizations collect employees’ data in one form or the other and utilize it for planning and transforming their business structure. But managing human resources data of an organization is no easy task. The use of analytics in HR operations over the years has made the tasks much easier for HR professionals. Analytics also help companies gain strategic insights and develop the ability to model how workforce trends impact revenue and profits — quickly and accurately. The use of analytics in HR also proves to be beneficial for the employees as it increases employee engagement in an organization. However, there are several roadblocks that would limit companies from exploiting the full potential of HR analytics. Let’s look at what they are:
It is necessary to collect and organize data from various operations and departments within the organization for successfully implementing analytics in HR. Data has to be acquired, sanitized, unified and analyzed from multiple departments as well as from multiple business functions, including payroll and finance. Therefore, companies need experts who can not only analyze the data but also gather and organize the right data.
Lack of data analytics skills
Though companies are intensively promoting the implementation of analytics in HR functions, the hard truth is that the analytics skills of most HR professionals are limited. Most of them also require adequate training to become well versed with the art of converting data into meaningful insights. This often makes the successful implementation of analytics in HR a difficult and complex task in most companies.
Privacy and compliance
Analytics requires an adequate amount of data to be collected from various reliable sources to produce the desired results. While gathering data about an employee or a potential employee, especially from external sources, HR professionals must consider privacy. Gathering personal details of employees could sometimes land the company in trouble.
Insufficient IT resources
The implementation of analytics in HR is an IT-intensive process. Many companies, especially smaller companies do not have the infrastructure required to set up an analytics program. Furthermore, setting up the required infrastructure could prove to be an expensive and time-consuming affair for companies. This is one of the main reasons why several organizations refrain from implementing analytics in HR processes.
HR has a variety of tools for various services sourced from different vendors. However, in most cases, these tools work in isolation. This proves to be a major challenge for organizations. To positively make use of analytics in HR, companies will have to aggregate these silo systems which would prove to be a difficult task in itself.
Companies often face flak from HR professionals while relying on computers to undertake HR functions, especially in cases like hiring. They tend to feel that it takes out the “human” factor from “human resources”. There are also chances that the analytics systems might not always be accurate in predicting the right outcomes.
To know more about the trends in implementing analytics in HR
It goes without saying that people are vital to the success of any company. The way in which companies recruit, train, and retain their employees has a major impact on their business performance. Today, human resource managers have access to huge amounts of employee data. However, the difficulty lies in collating, integrating, and analyzing data, which is highly essential for turning data into valuable insights. This is where advanced techniques such as HR analytics prove to be useful. HR analytics tools use HR and big data analytics to interpret the useful data and transform it into useful statistics.HR analytics help companies to understand what could improve their workforce management, create a team that consistently meets its targets, identify why certain managers continue to thrive whilst others burn out, and predict exactly which candidates are likely to succeed. That’s not all, here are some essential benefits of HR analytics that you cannot ignore:
- Improved hiring decision
HR analytics makes predictive analysis easier and helps managers to make the better choice based on historical data. HR analytics also prevent companies from making mistakes by understanding the past errors. Moreover, it allows the recruiter to learn more about candidates through online resume database, applications, social media profiles, and records.
- Training and development
Training is an essential part of workforce management for any company. However, if there are any gaps in the training process, it could cause some serious problems and increase the cost to the company. The training and development programs which are not handled properly can cause havoc to the budget of the company. Use of analytics tools helps the organization identify if employees are making the full use of the opportunities and the knowledge imparted to them during the training and development sessions.
- Employee retention
Retention of employees is one of the most challenging aspects of workforce management. HR analytics is an important tool for human resource managers to identify the reasons why employees leave or stay with the organization. It is highly effective in finding the skill gaps and areas where employees are struggling. Various tools like employee satisfaction surveys, team assessments, exit and stay interviews can be used to identify the reason for employee attrition and chart out the strategies to retain them.
- In-depth insights
With the help of advanced analytics tools, the company can gain deeper insights into the employee’s professional life. This can be done by tracking, sharing, and analyzing the performance-related data. Furthermore, the employee’s performance data could be used by the hiring manager to identify the great talents. This data not only provides more insights about the employees but also shapes the strategies to boost the employee morale, retention, and engagement.
- Re-engagement of candidates
Candidate records often go untouched or forgotten after the job posting is closed. Analytics allows organizations to re-engage a targeted group of candidates to determine their interest level for other vacant positions in the organization. It can also help reflect new positions, work experiences, or skills that might have acquired by the candidates since the last time they were engaged.
To know more about the latest HR analytics trends and tools
It goes without saying that the workforce is vital to the success of any company. If HR managers can analyze and predict staff needs accurately, then it would prove easier for them to make the office environment more productive, improve career development, and implement human resource processes. Research indicates that future HR leaders will be those who understand what technology can do, know how to mine intelligent insights from the technology, and apply them to their workplace to achieve their business goals. Advanced technologies such as HR analytics help managers to understand their workforce better. Therefore, workforce analytics is something that no progressive organization can afford to overlook. Here are four HR analytics trends that are going to break new grounds for companies at large:
Utilize blind hiring techniques
Sometimes managers find a hard time in making a choice between different candidates. Sometimes there are also reported instances of unfair or biased judgment made. Companies can avoid such incidents with the help of a blind hiring process. Businesses can use HR analytics software that is entirely bias-free for screening and preselecting candidates based on their actions and answers, using algorithms to calculate a candidate’s likelihood to succeed in the role they apply. In 2018, we can expect more companies to resort to advanced analytics techniques while hiring employees for different job roles.
Increased measurement of the employee lifecycle
This year, HR analytics is all set to take a sharp turn towards utilizing available data for measuring the entire employee lifecycle — from pre-hire to exit. Progressive companies are likely to emphasize more on using data for measuring the employee lifecycle and reduce voluntary turnover. Each phase of the life cycle can give unique insights and value to the company regarding voluntary turnover. Several survey firms are already moving in this direction.
HR analytics is here to stay
The benefits offered by workforce analytics have been tried and tested by various top organizations. The majority of midsized to large organizations are trying to invest in and build robust HR analytics capabilities. However, a significant dilemma remains for most organization whether to buy or build workforce analytics for their company. The decision indeed varies according to each businesses’ capabilities. Also, from past experiences, many companies have identified that having a strong strategy is essential while implementing workforce analytics. Otherwise, the data just remains a tracking dashboard, which is simply not analytics.
Increases use of IoT
Cloud computing’s application in HR has skyrocketed more than ever before in the recent years, and this trend is expected to continue in 2018 as well. Storing data on clouds means that it would be easier to access these data and use them for workforce analytics. Even small and medium-sized companies are increasingly incorporating IoT capabilities into their business. Cloud computing offers several other benefits as well to companies, which include automatic software updates, so that the staff can access applications anywhere and at any time, and also enhanced data protection.
To know more about the HR analytics trends for 2018
What is HR Analytics?
HR analytics is defined as workforce analytics, people analytics, or talent analytics. HR analytics is about analyzing the problem of people in an organization using data. It enables you to answer critical questions about your organization. For example:
- What is your annual employee turnover?
How much of your employee turnover comprises regretted loss?
Do you know which of your employees will be the most likely to leave your company within a year?
At Quantzig, we believe that businesses that have implemented analytics in their HR processes are much, much more efficient than their competitors. Now, this is something that needs a proper explanation. In this article, we delve into the intricacies of how HR analytics can help businesses boost their efficiency by at least 30%.
Benefits of HR Analytics
Benefit 1: Talent acquisition
With the increasing competition in today’s market space, companies are struggling to attract the appropriate talent and devise ways to retain young talent. This is a critical issue as recent studies suggest that bad hiring decisions cost around 30% of employees’ first-year earnings. By utilizing HR analytics or any other contemporary software solution, which is related to talent acquisition, companies can sift through thousands of resumes and create a base of the most promising prospects.
Benefit 2: Improving employee experience
HR experts are finding that increasing employees’ feelings of belonging to the company can increase morale and productivity. Analyzing how strong that sense of belonging is, as well as what contributes to it with help of tools like HR analytics, can help improve company culture and create a better work environment.
Benefit 3: Streamlining corporate training and evaluations
Today, it’s not enough to hire the best talent. The real job for HR professionals and recruiters is to make sure that they adapt to corporate procedures and guide them through effective professional training programs. Many employees also take part in online training programs, but it is hard to determine their exact benefits. By using HR analytics, trainers can get the best valuation and devise new strategies to modify courses and make employees more productive.
Benefit 4: Rethinking financial compensation
Among all the factors that play a critical role in influencing an employee’s satisfaction levels, financial compensation is perhaps the most important. After all, we all want to make a decent living and make the most of our opportunities. When it comes to pay, HR analytics can help you determine the financial model for each employee – this is critical for large Fortune 500 companies since they have many international branches with employees at various levels in the hierarchy.
Benefit 5: Taking greater advantage of machine learning
There are vast amounts of data available both within a company and outside it. Some companies are beginning to use machine learning and tools that leverage the insights gained from HR analytics to help interpret and act on this data. Such programs can examine employee and applicant data and help create strong matches for roles and teams, resulting in the recruitment of people that work well together and create effective results. There are many areas in recruitment, where advanced analytics can also be used to great effect.
Benefit 6: Unified employee support
Often, employees need to access different intranet locations and contact different people depending on the HR support they need or the information they are looking for. By making use of HR analytics tools, companies can identify a resource that accepts employee requests and returns the relevant information. This not only saves everyone time but also provides employees with a more pleasant experience.
Benefit 7: Stabilize retention
Today, HR analytics has become the primary tool to assess the retention rate of employees. It tells recruiters the exact reason for attrition and also sheds light on the reasons why employees decide to stick around in the organization. Such analytics tools can also help HR professionals to identify the skill gaps and areas where teams are struggling.
Benefit 8: Cloud migration
With corporate systems become more consolidated and automated, analytics begin to play a greater role. Tools that can leverage analytics are an affordable option for organizations that cannot build their own systems in-house. HR analytics can help organizations move critical information to the cloud so that it can be accessed from anywhere, not just within the office.
Despite such benefits, many companies still assume that HR analytics, or talent analytics, only deals with gathering data pertaining to employee efficiency. The truth, however, is very different from such naïve assumptions. Such analytics tools aim to provide insights into each process by gathering data and then using it to make relevant decisions about how to improve the processes. A recent survey by MIT and IBM highlighted the fact that companies with a high level of HR analytics had: 8% higher sales growth, 24% higher net operating income, and 58% higher sales per employee.
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For ages, HR has always been about people management. The modern HR management era has seen a shift towards the use of data and machines to efficiently manage the workforce. A significant amount of data is available to the managers, which can assist them in identifying, recruiting, and rewarding the best personnel. The managers will no longer have to rely on intuition and rule of thumb to make HR decisions as the metrics can give them a complete overview and guide them to the correct decision. Organizations are always screening the developments in the HR analytics market to keep up with the latest innovations and best practices. Here are the top trends in HR analytics:
Embracing New Data Sources
Companies are realizing the power of analytics and are looking at new data sources in addition to incorporating all existing data sources to make an accurate analysis of their workforce. For instance, companies are encouraging their employees to engage in wellness programs such as bring your own wellness (BYOW). The BYOW concept relies on employees carrying their own fitness measuring devices to workplace allowing companies to collect data to organize fitness challenges or events such as exercising, yoga, or walking.
Capability Gap in People Analytics
Although a majority of the organizations realize the value of HR analytics, only a handful of them have the expertise to extract value out of the data to improve the HR processes. There have been numerous reports suggesting that only about 10-20% of the organization who strongly feel the importance of HR analytics is actually strong in this area.
Emergence of Dedicated Analytics Positions
Organizations are looking to narrow the existing capability cap in people analytics by hiring dedicated professionals to manage their HR analytics. This trend can be substantiated by a report from Deloitte that states that job postings for the HR analytics role have more than doubled from 2010 to 2015. Another report from BurtchWorks states that the entry-level data science role rose 14% last year with a median base salary of $91,000.
For more queries on how your organization can reap benefits out of HR analytics: