Each company faces unique challenges to meeting its objectives and priorities, but no matter what their circumstance, they can find value in any of the phases of talent management: recruitment,
retention, training, commitment, or compensation.
There’s a lot at stake. Let’s go back to turnover. Harvard Business Review claims that 80% of employee turnover is due to poor hiring decisions.
According to Josh Bersin, ”the cost of losing an employee is 1.5 to 2.0 times the person’s annual salary. And if we talk about a top executive or highly qualified staff, this cost can rise rapidly to beyond double.”
People analytics offers a unique opportunity for human capital professionals to position themselves as strategic senior management partners, using analytically proven techniques to hire and retain employees who drive higher value in companies.
The main innovation to a more conventional approach is the intensive use of data for assessment and decision-making in the people department: whom to hire, whom to promote, what the ideal
structure of the company, etc.
Any people analytics solution should support decision-making in human resources. It should help those responsible by integrating modeling tools and human knowledge, especially in areas of uncertainty or incomplete information, to avoid making risky decisions based on human judgment and personal preferences.
Ref: People Analytics - Data and Text Analytics for Human Resources - Eduardo Valencia. Data Analytics Manager - Analytics to Grow.