Many firms still face severe obstacles while trying to streamline their people analytics, data cleansing, and reporting activities.
Better data management and advanced HR technologies still require a long way to go, which means the majority of the organizations are still adopting baby steps to prove great with people analytics. According to Oracle, only 44% of organizations have stepped into at least the first stage of workforce analytics to start leveraging the true benefits of implementing it in the firm.
This article focuses on discussing in detail the need of building a streamlined workplace with the help of data science in HR analytics.
Data Science in HR plays a significant role— there would be so much data for organizations in hand. However, the most significant factor is to automate it and emphasize mainly the human-specific tasks.
HR analytics has begun to optimize continuous processes and minimize the workload through automation. For instance, traditionally, every data analysis took many days since it involved too many processes. Merging multiple spreadsheets, text files, PowerPoint presentations, and many manual processes made the conventional method embarrassing.
But with time, automation gave birth to interactive HR reports and powerful Data Science tools to save the working hours required for every HR task.
The collection and the implementation of workforce and business data to make strategic decisions is known as people analytics.
Using a powerful people analytics approach, you can unearth specific insights for your talent to take the best business decisions. These insights help businesses in talent retention, performance motivation, and increase engagement. It is crucial to understand the source of people's analytics data and how they link to the success of your business.
For instance, the sources could be the employee evaluation data, talent management data, recruiting data, pay or benefits, employee information and development, tenure, demographics, leave or absenteeism, sales data, and many more.
Finally, when you connect these data with the business-specific data, the decisions you make are called evidence-based or strategic people decisions. The business data includes productivity, performance, value, sales, customer satisfaction, profit or loss, revenue or cost, etc.
Here is an example of Textio, an innovative writing platform that facilitates real-time text analytics to find mistakes or linguistic mentions in the text. This augmented platform also spots offensive language and offers suggestions to replace them.
Let's see certain questions that people analytics can quickly resolve: Are the new hires capable of improving the productivity of the workforce? What percentage of the workforce leaves the job voluntarily within the first 6 months of joining?
People analytics address these concerns and find a feasible solution to make the HR processes in organizations smoother.
Here are the benefits of People analytics from a business viewpoint:
How do people analytics benefit the employees in the organizations? Let’s check how they serve the best from an employee perspective:
In organizations, data science professionals should be aware of the judicious use of data science tools or AI-based tools to ensure that the business processes hit the target. This means you should pay attention in detail to the data, and its representation while building and tracking AI applications.
Data science education plays a huge role in shaping the employees with skills on learning how the training data could warp AI recommendations in any direction. A bias dashboard is a real-time example that individually analyzes how the people analytics tool functions across various groups. This facilitates the early bias detection for an early preventive system in place.
For any application that supports hiring, this dashboard segregates that accuracy, the mistakes the model creates a portion from every group who got into the interview, and was finally hired, etc. But remember, no model can be complete without human intervention. To be more specific, if you don't show the employee behavior in the concerned HR data of the employee, it affects the employee's success at the firm.
While data science in HR is still in place, HR professionals should document the possibilities to great extent. Though algorithms can detect past data and recognize the patterns, people analytics still prevail as the human-centered segment.
Analytics tools fuel the efficiency of HR processes such as hiring, employee engagement, learning and development, employee retention, and so on.
IBM has used analytics while they had a high turnover for the business-specific roles. With the machine learning capabilities of IBM Watson, the people analytics team created algorithms with sources like tenure, recruitment data, promotion history, role, salary, job role, location, performance, and many more.
The company has also incorporated employee sentiment analysis through Social Pulse. Here the hypotheses were that social media engagement rates might decrease when employees plan to leave the organization. Consequently, the investment resulted in making USD 300,000,000 over the four years and the critical roles saw a turnover reduction of 25%, IBM says. Nevertheless, the productivity improved and recruitment cost fell eventually.
Another breakthrough is Ellen, the AI-fuelled app that NextPlay.ai offers. The company aims to connect the mentors and mentees efficiently.
When candidates opt to access the mentoring program, the application connects them with the best partners or mentors who can share their knowledge. SAP.io foundry located in San Francisco supports this app currently under development.
People analytics based on Data Science and AI-based tools are powerful sources to trigger modern HR solutions and employee productivity, thereby improving the businesses.
Data Science tools changed the way HR works for any organization. However, these quantitative models support the business processes, while they can't replace human judgment. To yield the best from AI and data science tools, you should involve real-time monitoring of the application and analyze the criteria required to train the tools. You should also be careful about the impact of outcomes in different groups in different ways.
While feeding the right questions at the input, like the model, decisions, data, etc. the business can leverage People Analytics to achieve equitable workspaces for the future. Though the tools automate processes and reduce the burden of repetitive HR tasks, humans should make the final decisions. This is why human-in-the-loop analytics— analytics powered by humans, are highly in demand.
With the right data science education, the professionals can develop the data science skills necessary to scale the HR operations.