Talent Analytics

Talent analytics, also commonly referred to as people analytics or human-resources analytics, uses data to provide organizations with insight on employee performance, prospective hiring potential and more. No longer do staffing decisions have to be made on gut feelings alone—science is here to fact-check those instincts.

Named one of 2016’s top 10 talent-management trends by the HR Trend Institute, talent analytics is helping HR managers quantify the unquantifiable, including skills, intelligence and mindset, to make better hiring decisions. These are some ways your organization can put talent analytics to work:

• Identify high performers: Talent analytics can help determine which factors best predict performance. Josh Bersin, corporate HR, talent management and leadership analyst, cites a case study that uses data to predict a salesperson’s success. Contrary to the belief that candidates with high-quality references and high GPAs from highly ranked colleges made the best performers, data found the following predicted success: error-free resumes, completion of a degree, experience selling high-priced items, prior job success and the ability to work well in unstructured conditions. The subject of the case study implemented a screening process based on the new information and increased revenue by $4 million during the following fiscal period.
• Match skills with jobs: Looking to promote from within? Internal talent analytics can be used to match current employees with new positions inside the company. No longer is the best candidate for the job the one closest in proximity to it. Rather, data on emotional intelligence, attitude, initiative and flexibility can actually gauge the best candidate.
• Predict turnover: Analytics models can help companies understand which factors contribute to high levels of engagement and employee satisfaction, and on the contrary, which ones predict turnover. Using data can help management identify and act on work conditions, behaviors or other circumstances that correlate with retention. Analytics can also help determine where to invest in pay raises by providing a more thorough understanding of how they impact performance and retention.

Your predictions are only as good as your data. Start collecting and organizing data on the metrics that matter to your company. Consider measuring employee engagement or new-hire satisfaction with a survey. Random drawings for Swanky Pen and Notebook Sets, MopTopper stylus pens or shaggy screen cleaners can be used to encourage participation.

And be sure to put your data to work for your company. Consider assembling a cross-functional team to experiment with whatever data you have. Ask teams to identify common challenges or companywide problems and use data to come up with potential solutions. Reward team members for their hard work with a small token of thanks—perhaps a company-logo’d tablet sleeve or power bank.

The sky’s the limit with talent analytics. It goes beyond assumptions and provides fact-based evidence to guide your organization down the path to success.