- Posted by Vidcruiter
- On October 16, 2012
- 0 Comments
- applicant hiring system, recruiting technology, screening automated, talent recruiting system
HR analytics is now a key strategic tool in growing a business. What is HR analytics anyway? These are relevant figures and metrics that provide a clear look of an organization’s workforce. This can include data on costs of compensation and benefits, performance figures of individuals within the organization, competency and skill breakdowns of people, age demographics, and more. These can all help managers and leaders have a better grasp of their HR and use that knowledge to drive the organization towards profitability. But HR analytics has more traction when human resources are perceived more as “capital”.
Human capitalization is not just refining a term (from human resources), but an actual re-word to fit its actual role in the organization. Talent compensation can easily make up half of the annual expenses of any organization (even more in some industries). People are not just “resources” but capital. The key question is: can you afford to blindly manage capital? Enter HR analytics.
Managing organizational change better
The only thing that is constant is change. HR is not exempted from change. In the midst of a shaky economy, adjustments on human capitalization are the key in seizing opportunities for growth. Should the organization downsize? Or should it gear up and hire more people? Baby boomers are retiring, is the bench deep enough to cope up with vacated key positions? These are questions that arise when an organization need to anticipate and act on changes while ensuring continuous growth. And there is no better way to answer all these but through asking more questions with HR analytics in mind. How many jobs can be merged? Who are the people that can be cut off? How many people are needed to boost up current production? Just how many people are retiring and when? What would it cost to keep retirees longer? What are the financial implications of losing experienced people at this point in time? HR analytics can provide timely answers. These answers can help HR managers and corporate leaders maximize growth prospects.
HR analytics and hiring
Hiring might be a routine corporate activity but it can be daunting when the growth of the organization depends on it. Toyota poised itself for growth when everybody in the industry was retrenching. Toyota kept on hiring engineers, and with everybody terminating them, there were a lot around, Toyota simply took its pick. In a very short time the auto industry bounced back and nobody was more ready than Toyota in seizing the opportunity for growth. It is a classic application of HR analytics and basic business sense. The car maker made a calculated risk by factoring on costs of keeping people in very lean times and projecting future profits against current compensation and training costs. They were able to justify the move and got away with handsome profits by simply making sense of human capitalization and using HR analytics to tell them if it is worth the gamble. Hiring decisions are sounder with tangible, objective figures.
To learn more about how you can improve your hiring with a leading HR recruiting software go to www.vidcruiter.com.
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