When talk about analytics surfaces, most people prefix the terms ‘data’ or ‘business’ to it. But did you know that analytics can be applied to people too, especially in the human resource (HR) management domain?
People analytics is a result-oriented method of studying people, processes, functions, challenges, and opportunities at work. This discipline can elevate overall organisational culture and achieve sustainable business success, since the assessment is based on data, business acumen and is aligned to the company’s goals.
Before you dismiss it as modern-day mumbo-jumbo, take a closer look at some companies that leverage the practice to create more business value. Behemoths like Google, Walmart and Microsoft have invested in people analytics, believing it plays an important role in hiring the right talent at right place and right time.
BIG ON DATA
Until a few years ago, while professional qualifications played an important role in hiring a candidate, the final call often rested on the interviewer’s gut instinct. This intuition-based decision-making could often go sideways, especially in a service-oriented industry like hospitality. On the other hand, data-backed test score results in people analytics can give a recruiter more qualitative information about a candidate’s leadership skills, personality traits, behavioural aspects and aptitude.
Kallol Saha, HR Director of Crowne Plaza Today Gurugram
According to Kallol Saha, HR Director of Crowne Plaza Today Gurugram, the tool can be customised by adding specific technical competencies as well. This can be done by translating strategic business challenges into analytic questions and using evidence-based information to infer insights derived from the analytics.
Of course, data, or rather structured data, is the bedrock of people analytics. When backed with actionable insights, it can support strategic decision-making on diverse types of talent issues. Walmart, for instance, monitors customer experience and sales and then aligns this to its people analytics data to identify career growth paths and reduce retention.
Saha noted that HR analytics embraces critical analytical study using online assessment tests, gaming evaluation, app-based talent management profiling, virtual mode of interviewing and much more. “Moreover, it makes the entire talent acquisition and onboarding systems faster as the new strategical tech-based hiring and behavioural interviewing process helps HR managers tremendously in completing the hiring process efficiently.” Interestingly, many hotel companies have started onboarding recruits through app-based learning systems. In fact, even joining formalities can be done through these web-based programmes, by following few simple steps.
A SLIPPERY SLOPE
While data-driven people analytics might seem be a no-brainer, not everyone is smitten by it. Some hotel companies believe it makes the entire recruitment and onboarding process more automated and therefore, impersonal. This runs contrary to the principles of a people-first industry like hospitality.
Saha agreed that changing people’s mindset is one of the biggest hurdles in adoption of people analytics. “Hospitality is a 100% human resource-intensive industry where the recruitment and selection process are more in-person than automated in nature. Therefore, individual engagement becomes very important and often productive,” he accepted, while adding that people strategy and statistics can sometimes be missed in people analytics.
The other challenges in the discipline is not engaging candidates in the right way or underfunding the data management process. “It is very crucial for a recruiter to strategically analyse and screen the insights from a candidate to determine their competency for a particular role. This is where having the right amount, and kind, of matters,” Saha stated.
WFH MADE EASIER
People analytics has come as a boon for HR professionals in contemporary times where most are working remotely and often have to rely on virtual interactions with prospective candidates. It makes the recruitment process more efficient, while speeding up the hiring process.
Saha stated that his organisation has often used people analytics to make hiring decisions, and has tremendously benefitted from this approach. “Using people analytics like leadership online assessment
test proved beneficial while hiring for management roles. Similarly, we have successfully used sales trait assessment tests to hire sales professionals and Gaming Zone assessment for campus hiring,” he added.
It has also proven to be a valuable tool for determining performance evaluations and taking promotion decisions. At the time when managing labour cost is one of the biggest challenges for hoteliers, hiring, training, motivating and retaining good talent can go a long way in maintaining that cost equilibrium. Moreover, they can leverage it to improve employee satisfaction and performance, which in turn, can reduce turnover and improve retention rates.
