Five Ways Data Analytics Can Help Your Business Succeed
As a company grows, it can become increasingly important to ensure that the daily running of the business is as simplified as possible. However, even in today’s modern technological times, the vast majority of companies are still using outdated methods for managing employees. As human resources departments face increasingly complex business changes, the use of data analytics can make a significant difference in a company’s employee quality, as well as the overhead spent on hiring, training and even retaining good workers.
In the past, many companies made the majority of their hiring decisions based on a couple of basic things. First, HR professionals reviewed stacks of resumes, setting aside the few that stood out among the rest. Then, they scheduled an interview with each potential new hire. Whether the interview process consisted of one or multiple face-to-face interviews, the hiring manager was still faced with a huge amount of responsibility in choosing the best candidate for each position almost solely based on their own personal instincts. Data analytics, however, enables the HR department of a company to make decisions based on specific data rather than the candidate’s appearance or personality traits.
Business owners and managers face the responsibility of promoting within their company, knowing that they may be accused of favoritism. Although most managers truly want to promote based on merit, they also look for those who stand out in terms of positive disposition, a team-player attitude and a general willingness to help. While these are all positive traits, they can often distract from an employee’s true productivity, which means that a better candidate may be overlooked simply because they tend to remain in the background. By utilizing performance data to make decisions for in-house promotions, better decisions that will actually benefit the company as a whole can be made. Another benefit is that managers will no longer have to face accusations of favoring one employee over another.
It is simple to see how data analytics can significantly increase a company’s employee retention rate. When the right candidate for a job is hired, the top performer is promoted from within, and employees understand that favoritism is not in play. When it comes to human resources, any company is bound to hang on to their top employees. Although there may always be a few underachievers with a bad attitude, the vast majority of employees will have a positive outlook and an improved morale.
Managers take on a significant amount of responsibility when it comes to keeping their staff happy and working toward a common goal. Unfortunately, because of human error and a manager’s inability to see everything at all times, mismanagement occurs far more often than necessary. Data analytics is a great way to reduce or eliminate this problem within a company, because it enables the manager to make decisions based on data rather than what they may or may not see with their own eyes.
As any human resources department fully understands, hiring, training and paying employees makes up a huge portion of business expenses. However, when data analytics strategies are put in place, hiring managers can drastically reduce those costs by hiring the right person for the job, training that person only once and ensuring that their work is managed in the most productive and cost-effective ways.
Regardless of a company’s size or number of employees, data analytics is one of the best ways to improve the overall functionality of any modern business. The good news is that leaders in human resources are beginning to recognize the importance of updating processes to simplify decision-making within their company. Increasing technology makes it easy for a business to utilize data analytics procedures to bring positive change to their company.