Every company’s success is fuelled by its people, which is why human capital is a crucial part of an organisation. A company is only as successful as the people it hires and retains. Therefore, leaders must ensure they are finding talented employees, retaining them and helping them develop their skills.
Why track data?
It’s become clear that solely relying on intuition for human capital isn’t reliable and with the ability to automatically track this data, why would you? Relying on instinct alone isn’t enough to stay on track with every aspect and you don’t want to risk falling behind your competitors.
Human capital data should be utilised to make sure important decisions are made about the workforce. Allowing for the tracking of human capital data collects the key traits possessed by each individual employee and everyone collectively as an organisation.
Capture the process
Building human capital analytics allows a business to understand the entire process of employment.
Through this information, leaders can understand why people join the company, perform well and stay in the organisation. By utilising human capital data, more can be learned about which employees may be the best candidates for a raise and which ones may need extra support.
Keeping up with the competition
Already, companies have begun tracking human capital analytics. These companies have begun this implementation in order to form a better understanding of any behaviours, risks and skills within their workplace. In fact, some large companies, such as Google and Twitter, have started people analytics teams to track and understand this data.
Experts agree that utilising automated processes is the key to success. Claire Bissot, a certified senior professional in HR, stated:
“HR professionals should begin investing their time to build automated processes, utilizing technology, so that they can begin to get out from behind the desk piled with paper and get out to get to know the people.”
Automated processes provide HR managers with an advanced understanding of their employees, which, in turn, provides them with more insight into how to harness any skills or fix any downfalls.
A new understanding
Across the many companies that have adopted this practice, a lot of new research has been done to change the way hiring is executed.
For example, through people analytics, insurance companies have now determined that how a person performed in their academic careers is not a strong indicator of how they will perform in sales. Additionally, some companies are using their data to predict the future. Automotive companies have begun studying the patterns of absences across their workforce to predict when extra staff may be required and some HR departments are using their data to better understand why some employees are more productive than others.
How do I start?
Now that human capital analytics have begun to gain popularity, it's time to consider implementing them into your business.
To start, look at places where your organisation makes money and build on the data from there. You may want to start by looking up analytic technology tools or by investing in a small people analytics team.
Finally, do your research into how to best track human capital data for your organisation. This may require an investigation into which developments work for similar companies.
In conclusion, tracking human capital data provides companies with a huge advantage. Through this information, companies can better understand their employees and form patterns of their behaviours.
Human capital is one of the most important aspects of a company, so it's important to start implementing human capital analytics so you don't fall behind.
- Caramela, S. (2017). Beyond Human Resources: 4 Ways to Improve Human Capital Management. Business News Daily. Retrieved from https://www.businessnewsdaily.com/8145-human-capital-management.html
- DU Press. (2017). People analytics. Retrieved from https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends/2016/people-analytics-in-hr-analytics-teams.html