Big data in HR
Ever wondered how Google manages to draw the best out of its engineers all the time? It does so with the help of a retinue of smart managers. The data mining giant understands that managers have a much greater impact on employees' performance and how they feel about their jobs than any other factor. And how did it develop this insight? Not by chance, nor by accident. Its 2009 initiative, code-named Project Oxygen, cranked out what is referred to in popular media as the "Eight Habits of Highly Effective Managers" - traits that have been incorporated into its various training programmes and have given the company "statistically significant improvement in manager quality for 75 per cent of the worst-performing managers," according to various reports.
Typically, if HR uses data, it collects business intelligence on things or events that have already occurred. Through predictive analysis, however, big data can tell HR professionals why something happened and allows them to make some pinpointed forecasts. In fact, it is this predictive nature of data analytics that is changing the role of HR… for the better.
Says B Sivaramakrishnan, managing consultant, Hay Group, India, "By using data analytics in work force management, HR can help companies maximise return on manpower investment. For instance, in manufacturing the impact could be 10-12 per cent of total sales while in services industry, due to its people intensive nature, the impact on ROI could be 70 to 80 per cent." In his view, the recruitment cost in a company is on an average 15 per cent of an employee's cost to the company and typically 12 to 15 per cent of an employee's salary is training cost.
http://www.haygroup.com/in/press/details.aspx?id=44368 |