Why Use BI and Analytics in HR?
Human Resource (HR) holds a massive amount of data in any organization. Data analytics, business intelligence (BI), and HR analytics are three main functions that are lately being integrated, and now, they have become buzzwords in the business field. According to the Deloitte Human Capital Trends report from 2015, very few companies were focusing on the people analytics to overcome the complexity of business and talent issues. Today most of the organizations are fond of performing big data management in business. Earlier, there was only a limited focus on BI in organizations.
Deploying business intelligence and analytics in HR supports some other technology-driven business processes such as data mining, querying, online analytical processing, and reporting to create more insights during data management. It additionally gains more competitive advantages over business rivals, drives new revenues, optimizes internal business processes, identifies market trends, and accelerates the decision-making process.
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Changing to a business-centric people analytics needs to have a systematic multi-layer multidisciplinary transformation program. In this large-scale transformation effort, some key factors need to be focused. First of all, a strategic roadmap needs to be created, which means, the transformation should start with a strategic analysis of data-driven opportunities between business outcomes and talent management. Enlisting the leadership support becomes the second element. The senior leadership involvement ensures a collaboration of multiple line-of-business stakeholders and support from all the functions in an organization. Building a balanced team is the next element. The team should have a cross-functional and cross-organizational image with technologists, business units, data scientists, and department heads.
Defining a data strategy is the next element. Organizations need a data strategy that ensures the integration of accurate, clean, and reliable data from organizational, HR, and external sources. According to a survey by PwC, one of the major barriers to effective people analytics is the multiple unintegrated sources of data.
As BI connects people to the financial performance of a company, it has become the main element to analyze the true value of the human resource in an organization. With the help of BI, HR can be much productive across the organization, and this will play a major role to adopt drastic changes in the market.