What are talent analytics? 6 types & uses
Companies are increasingly turning to hiring analytics in order to evaluate success.
The act of combining science with the typical aspects of recruiting enable companies to make better hiring decisions.
If recruiters are armed with talent analytics, they can make more informed decisions that will allow them to hire for the future and not just the position that is available today.
Here are six types of data used to evaluate an organization's HR functions:
- Human-Capital Facts - Key indicators of the business's health, such as head count, turnover rate, and employee satisfaction.
- Analytical HR - Segmented data on the areas that need most attention.
- Human-Capital Investment Analysis - Tracks the activities that have the largest impact on the business, such as how employee satisfaction results in higher revenue, lower costs, and greater employee retention.
- Workforce Forecasts - Identifies and predicts the best times to either build up your team or hold back.
- Talent Value Model - Provides Information on why employees want to stay in an organization or why they choose to leave.
- Talent Supply Chain - Predicts how to best staff a company according to any variations within the business.
Companies today want more from their talent. Analytics helps takes the guesswork out of recruiting.
6 Uses of Talent Analytics:
- Human-Capital Facts: a single version of the truth regarding individual performance and enterprise-level data such as a head count, contingent labor use, turnover, and recruiting.
- Analytical HR: collects or segments HR data to gain insights into specific departments or functions.
- Human-Capital Investment Analysis: helps an organization understand which actions have the greatest impact on business performance.
- Workforce Forecasts: analyze turnover, succession planning, and business opportunity data to identify potential shortages or excesses of capabilities, before they happen.
- Talent Value Model: addresses questions like "Why do employees choose to stay or leave our company?" Organizations can use analytics to calculate what employees value most and then create a model around it that will boost retention rates.
- Talent Supply Chain: helps organizations make decisions in real time about talent-related demands.
Organizations should not adopt an analytics-only method of managing their workforce, but rather create material value for themselves by applying the right data and tools to their people processes. The use of data can help do a lot of the heavy lifting, while also creating a competitive advantage within the market.