Benefits of Big Data Analytics in Human Resources for Businesses.
For companies, customers are critical towards generating revenue, as such generally any Big Data Analytics are geared towards understanding customers behaviour. This is not only to gain new customers, but also as part of the customer retention process. However, Big Data Analytics can benefit a business in a much more crucial aspect: Human Resources.
Human resources has a significant cost on a company’s expenditure. In some companies, the cost if payroll can be up to 70 percent of the revenue. The cost of hiring a person who does not fit the role can be detrimental, not only to the finances but also towards productivity, and perhaps even cost potential business to the company. Big data can be used in human resource decisions through improving:
Talent acquisition and retention
What is a company without their talent, and what good is the talent if retention is low? If you are struggling to get the best talents in the market, and to retain these talents big data models can help to reduce the problem, by analysing the applicants background information, including education, working history. The analysis of the candidate’s needs, and interests are also taken into account.
Improve overall financial results
As costs of labour are generally one of the largest costs for operating a company, big data analytics can help to manage this cost by increasing efficiency, identifying weak areas, and reduce wastage. These will in time improve overall financial standings.
Employees’ performance can be evaluated by analysts, and decide areas which require more emphasis, or additional headcount. Any employee that has fallen behind can be detected to enable corrective action to take place.
Increase workplace diversity
In the globalisation era, it is expected that companies employ workers from various backgrounds to work within the corporate culture and framework. Data Analytics can be used to improve diversity, and strengthen the team with talents from various backgrounds.