Other parts of this series:
- Human capital analytics ramps up business performance
- Human capital analytics helps organizations get smart about their future talent management requirements
- Human capital analytics enables organizations to improve their workforce management through better engagement and rewards
- Human capital analytics boosts staff retention by curbing absenteeism and combating employee attrition
Retaining skilled staff, especially top performing employees, is a growing challenge for organizations competing in the digital economy. The absence of vital skills, the high cost of hiring and training new workers, and delays caused by lengthy orientation programs can stifle business performance.
Human capital analytics helps organizations identify and remedy the causes of absenteeism and staff attrition. Furthermore, it can predict which parts of the business will probably suffer staff shortages in future and even identify individuals who are likely to leave the organization.
By combining big data and analytics technologies, human capital analytics provides organizations with valuable insights into the performance, behavior and motivation of their workforce. An effective human capital analytics solution, tailored to improve staff retention, is likely to comprise the following components:
Attrition analysis: Analytics systems can perform current-state assessments that identify attrition hot-spots within the organization. By gathering and assessing comprehensive samples of data they are able to identify the main causes of staff attrition.
Predictive attrition models: Sophisticated analytics tools can create predictive models, which incorporate machine learning and statistical analysis, to identify the employees most likely to leave the organization.
Employee attrition risk alerts: Analytics systems can issue risk alerts, triggered by predetermined scores in the predictive attrition models, to human resources advisors or worker supervisors.
Deployment plan: Risk alerts can be tracked and escalated by the analytics system to ensure that remedial action is initiated and potential employee grievances addressed. It accommodates feedback from the human resources advisor or worker supervisor and can, if necessary, devise further responses.
The capabilities of human capital analytics are substantial. This technology, as I mentioned in an earlier blog post, spans the full range of human resources activities from talent planning and acquisition through to talent management and finally talent retention. It is also a valuable tool for drafting human capital roadmaps, for it accurately assesses workforce capabilities and effectively prioritizes major concerns. Real-time dashboards enable key executives to manage current human capital resources while positioning the workforce for the future needs of the business.
A broad range of product and service providers are rapidly expanding their human capital analytics offerings. They include advanced analytics applications, visualization software, analytics tools, storage repositories and services, and data ingestion products. Their capabilities will continue to increase as analytics suppliers embrace new technologies.
The benefits of human capital analytics are already compelling. Organizations that are slow to adopt this technology will struggle to effectively manage their workforces in the emerging digital era. The consequences of this hesitance are likely to be seen not only in their workforces, where talent will be rapidly eroded, but also in the financial performance of the organizations as they struggle to adapt to fast-changing market conditions.
For further information, take a look at these links. I’m sure you’ll find them helpful.