Human capital has been one of the prime resources of a company. HR decisions are based on quality and not quantity, psychology rather than statistics. Thanks to advancements in the field of business intelligence, things are evolving.
Business Intelligence uses data and research to help you make smart business decisions. It helps develop smart human capital and entails many processes.
The benefits of BI in HR can be categorized as follows: –
Recruiting the right people
When it comes to recruiting, you have many details to go through to select the right person for the job. You begin with identifying the main characteristics of an ideal candidate. Related KRA’s associated with the position are determined.
Combining such internal data, with the available pool – will help you identify the ideal hire.
BI enables the automation of this entire process. It not only saves time and money but also reduces the chances of errors. It enables managers to focus more on interviews and such important stages of hiring.
Business Intelligence for performance
Although recruiting is critical, performance and results too are important. BI helps analyze the new hire’s success and determine their suitability for the role. It also shows the success of the onboarding phase.
Analyzing success for long-term workers can function a little differently. You would need to rely on other factors too instead of only analyzing performance. Factors such as matrixes for similar jobs at rival firms or job growth rates need to be considered too. BI enables a clearer and more comprehensive view of employee performance. It can also identify areas where HR can help through preparation, inspiration, etc. with the help of BI.
Business Intelligence for staffing needs
One of the most important features of BI is its ability to visualize data and make it more comprehensible.
For HR, this streamlines mundane procedures while still optimizing the demands of specific teams. For example, BI tools can help to discover low success rates within departments. Suggesting the need for quantity and quality of personnel or recognizing training gaps.
Another important BI application here is risk assessment. BI helps detect patterns, such as higher employee attrition rate in respective departments.
Business Intelligence for culture
Internal culture is an essential component of every organization. It brings life to the workplace and helps brand awareness. The question arises – how will BI assist in retaining the organizational culture?
Many HR divisions are reactive rather than being proactive. Their focus is more on recruiting, and they usually put Dispute Redressal at the bottom of their priority list.
BI can drive a culture of employee treatment by leveraging data to define employee needs and discover answers. It may include evaluating employee retention surveys and comparing them to successful matrixes. Thus, clearly identifying the points of concern.
Business analysis for CSR
BI can also aide corporate social responsibility, an activity expected from HR. This can be achieved in various ways viz. coordinating workers’ preferences, such as dogs, with a local social initiative.
By recognizing the company’s potential effect on the environment. Also, by incorporating youth mentorship services or work shadowing (OJT).
CSR can increase employee productivity and organization’s reputation. It encourages workers and the corporate to do good for the community.
To conclude, an organization can incorporate BI only once they know the achievables. Other limitations also need to be considered before utilizing BI.