By Martin Conboy
By analysing employee data, in a similar manner to how they assess sales and marketing data, organisations can significantly improve business performance while reducing recruitment and hiring costs. It’s a challenge for organisations to leverage this data and there is potential for BPO providers to assist clients.
Sophisticated outsourcing organisations are starting to understand their cost per hire (CPH) as a metric to manage costs in the recruitment process. Not counting the actual sometimes huge amounts of money spent on marketing and promotions to get people to actually apply for a position, the actual costs associated with screening and processing applicants is a daunting number.
According to Deloittes HR is becoming a data-driven function. Organisations are looking for the ability to make better talent decisions such as predicting employee performance as well as enhanced workforce planning and forecasting.
Key to their ongoing strategy is analysing employee data. Josh Bershin highlights that organisations are loaded with employee, HR, and performance data. For the last 30 years they have captured demographic information, performance information, educational history, job location, and many other factors about our employees.
The ability to utilise this data to enhance selection, management and alignment of people to business processes and objectives promises significant returns.
It can help prevent regretful hiring decisions based on ‘gut’ feeling.
Employers are constantly perplexed by the question of why some employees are more successful than others and some organisations use software to find answers.
The software is used to pull data from human resources systems to analyse the issue in the context of high-level corporate goals.
The software is used to identify what is it that is making individuals or teams successful and what is it making other ones less effective?
BPO providers are already helping organisations address their big data issues, particularly in relation to CRM and social media data. The same skillsets and methodologies can be applied to HR data but in a different context.