Google Inc. is the best company as per Forbes 2014 list of top 100 companies to work with. And the fact that Google has featured 8 times on the list compels us to think what they do differently. What is that one inherent factor which is making Google one of the most employee friendly companies YOY?
The answer to the above question is a data driven HR system. Traditionally, Human Resource was thought as a vertical which focused on relationships and employee-employer wellbeing. The only mathematical term perhaps used in HR system was by a payroll management team. But the evolution of Analytics has changed the above mentioned approach. A research shows that 60% of the variable cost to a company is towards People. So it was just matter of time when companies started looking at People Management as analytically as possible. Google Inc was among the first mover towards data driven People Management.
So how HR Analytics is helping companies in creating an ecosystem of employee prosperity?
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To start with, lets us consider algorithm based recruitment which matches an individual’s functional and technical ability with the job requirements. It helps companies in quantifying the suitability of a job seeker for a particular job role and helps them to screen people analytically. Hence, not only that, Companies get the best talent for the requirement but it also helps employees to perform to their potential. It also augments employee satisfaction as they do what they like.
Next, Predictive Analytics will help HR team in effective management of resources in terms of on-going demand. A predictive model, based on employee statistics, enables HR managers to understand if they will have right number of resource in the coming month or not. An Attrition Analysis will allow them to assess employee’s propensity to leave which again helps in better man-power management and devising retention strategies.
Similarly, a Factor Analysis may help HR managers to understand the driving force behind a group of people which impels them to perform well than others. So instead of focussing on a number of attributes responsible for performance and satisfaction, we can focus on those key factors and drive the entire team.
Leadership Attributes among employees can be assessed based on company internal data and key people can be identified in much advance. This approach helps us in easily recognising the leaders who will be top performer for a job and will be instrumental in coming up with effective retention strategies of their subordinates.
The above mentioned data driven methods are some of the approach which is helping HR in making their company a better place to work.