With talent analytics, McKinsey reports that companies can enjoy an 80% increase in recruitment efficiency, a 25% boost in business productivity and a 50% decrease in employee attrition. This is because HR teams can use data science services to point to the candidates that are best suited to specific roles, identify employees who are becoming less engaged with their work and optimise their HR strategy to lift their bottom line.
Here, we take a look at eight of the key benefits that talent analytics can bring to workforce planning and human resource management.
8 business benefits of talent analytics
1. Improved productivity
It’s estimated that poor productivity costs US businesses around $550 billion each year. By delving into the data behind what drives better business performance, business leaders can focus their employee management strategy on those areas that yield the biggest return for staff engagement. This, in turn, will help to ensure that teams remain productive.
2. Trusted recruitment insights
Powerful analytics technology and algorithms can help hiring managers sift through candidate CVs while analysing other suitability factors throughout the recruitment process. This means that only those potential employees with the best-fit skills and experience make it onto the team.
3. Gain a whole picture of hiring metrics
Recruiters often have a compartmentalised view of hiring metrics, which makes it all the more time-consuming to find and appoint the right people. Talent analytics give a holistic picture of the key metrics used to identify the best candidates, enabling a swifter and more successful recruitment drive. These metrics include:
- Sourcing statistics
- Drop-off rate
- Time to hire (TTH)
- Quality of hire (QoF)
- Cost per hire
- Offer acceptance/rejection rates
- Premature turnover (within first year)
4. Continuous assessment of skills and suitability
By constantly monitoring the skillset of its existing workforce, a business can instantly spot any gaps that need to be plugged and adjust its employee management and hiring strategy accordingly. With talent analytics, you can make data-driven decisions on things such as:
- which team members are ready for promotion
- who could benefit from learning a new skill
- which employees might be better suited to a different role
- which team members require more rigorous management to meet expectations
5. Boosting employee retention
Data analytics can help businesses identify which elements of workplace culture and specific roles drive employee engagement. By furnishing HR managers with solid data, gathered through methods such as employee engagement surveys, companies can enable their human resources teams to take actions that promote a happy workforce and, thus, reduce staff attrition.
