Data Analytics & Shaping Employee Development
Incorporating data analytics in HR strategies has been shown to boost employee development by 5%, according to Gallup, an analytics company. As employees are a company’s most valuable asset, continuous investment in their development is crucial for organizations to derive and contribute value from their workforce.
To ensure maximum value from existing employee development strategies, companies face the challenge of implementing data analytics capabilities in their HR departments. HR data analytics enables monitoring of employee training and performance data and plays a significant role in identifying the need for new talent, additional training, or workforce reductions. Insights derived from HR data analytics contribute to informed decision-making.
Recent studies have emphasized the importance of HR data analytics in contemporary business contexts. For example, a 2019 Oracle study involving 1,510 decision-makers from 23 countries found that 94% of participants could predict turnover and its impact on the organization, while 94% stated that HR data analytics provided real-time insights for setting employee development goals. Additionally, 31% of respondents used artificial intelligence tools to analyze HR data, unlocking valuable insights that would have otherwise remained untapped.
These statistics demonstrate the increasing interest in HR data analytics for employee development. Companies vary in how they develop data analytics capabilities, with some opting for specialized tools incorporating artificial intelligence, while others focus on hiring skilled data analysts. As data analytics becomes more integral to HR functions, HR managers’ roles are evolving.
In conclusion, leveraging data analytics in HR can result in a 5% improvement in employee development efforts, emphasizing its significance in fostering employee growth and driving organizational success across departments.
