Unleashing the Power of Data Analysis in Human Resource Management: Why it’s a Game Changer…

WHAT IS HR?
The department within a company that is responsible for locating, hiring, evaluating, and educating job candidates is known as Human Resources (HR). The Human Resources (HR) Department undertakes a multitude of pivotal functions. Among these, five prominent categories of duties stand out, including:

• The identification, screening, selection, and integration of fresh talent into the workforce • The administration of employee compensation packages and fringe benefits

• The provision of opportunities for professional growth and advancement of personnel

• The management of concerns and challenges faced by individual staff members in their work environment

• The formulation and implementation of policies that have a widespread impact on the organizational work culture.

In contemporary times, HR decisions are no longer predicated on subjective assessments such as whether a candidate is an ideal match, why employees tend to leave after completing their first year, or why the quality of candidates has declined in a specific department. To comprehend, evaluate, and redress such challenges proactively, HR professionals now employ data and analytics. Employees are the most crucial asset for any organization, and HR professionals rely on data and analytics to safeguard this colossal investment. The emergence of data and its significance in HR processes has led to the development of a new term and discipline: human resources analytics. HR professionals can now capture, organize, and analyze vast volumes of data encompassing headcount, compensation, job title and function, work location, on-boarding, turnover, employee engagement, diversity and inclusion, learning and development, and more, to generate valuable insights for the company. The rationale is straightforward — to address pertinent questions related to employee productivity, employee attrition, the efficacy of training programs on business performance, and the like.

IMPORTANCE OF ANALYSIS IN HR

The use of analytics in HR has become increasingly popular due to the benefits it provides. Through data-driven decision-making, HR can measure the impact of its functions on the strategic goals of the organization, increase workforce productivity, contribute to corporate speed and adaptability, and identify the best innovators for recruitment. Analytics also allow HR to prioritize and allocate resources effectively, identify ineffective talent programs, and discover the root causes of problems. Furthermore, data-driven decision-making can help predict future trends and problems, allowing managers to prepare and plan accordingly. Additionally, using data to influence managers is effective, as it provides hard evidence that is difficult to contest. Finally, analytics can be particularly useful in the recruiting function, which has been found to have the highest impact on corporate revenues and profits.

The use of analytics in HR has become increasingly popular due to the benefits it provides. Through data-driven decision-making, HR can measure the impact of its functions on the strategic goals of the organization, increase workforce productivity, contribute to corporate speed and adaptability, and identify the best innovators for recruitment. Analytics also allow HR to prioritize and allocate resources effectively, identify ineffective talent programs, and discover the root causes of problems. Furthermore, data-driven decision-making can help predict future trends and problems, allowing managers to prepare and plan accordingly. Additionally, using data to influence managers is effective, as it provides hard evidence that is difficult to contest. Finally, analytics can be particularly useful in the recruiting function, which has been found to have the highest impact on corporate revenues and profits.

Human Resources can reap a multitude of benefits from Big Data, with ongoing advancements in data analytics continuing to enhance these advantages. HR Big Data is experiencing several emerging trends, all of which can be utilized to create the greatest possible impact. People analytics empowers HR to make informed decisions and provide effective advice to organizations by leveraging data insights. When data is fully optimized, data-driven decisions can have a significant impact, especially when analyzing vast amounts of data to identify trends. In today’s and the future world, HR can leverage several tools that utilize Big Data and data analysis:

AID 01: Hiring processes optimized & streamlined

AID 02: Better understand growth opportunities

AID 03: Increase employee engagement levels

AID 04: Enable decisions that are more effective and informed

AID 05: Decrease attrition and uplift employee retention

AID 06: Identifying employee skill gap

AID 07: Improved workforce planning

AID 08: Improved succession planning

AID 09: Educate and inform leadership teams

AID 10: Proper utilization of training needs and develop the organization.

AID 11: Improved organizational performance monitoring

The significance of HR analytics has been growing steadily and is now a crucial focus area for the human resources function. Adopting a data-driven approach to decision-making is increasingly becoming an accepted norm across various industries, and HR professionals have also embraced this trend. For organizations and their HR leaders, teams, and practitioners, the ability to create value from both human capital and data has become a valuable asset, with untold potential as new developments in big data continue to emerge.

In the context of Bangladesh’s culture, HR plays a pivotal role in managing organizations. However, the use of an analytic approach to HR has yet to be widely adopted across all sectors. While not all sectors may require it, it is imperative for all industries, including small businesses, to adopt an analytic approach to HR for their betterment. Approximately 45% of organizations in Bangladesh are currently implementing an analytic process, which is commendable but not comprehensive.

In Bangladesh, there is still a tendency to rely on outdated methods in many cases, and there is a need to broaden the scope of HR development through an extensive approach. The potential benefits of using data analysis in HR are immense and can give organizations a competitive edge. It can be a game-changer for both employers and employees, and it is high time to shift away from analog HR methods and emphasize broader HR development in Bangladesh.