Big data has been around us since the ancient times, but the term itself was just coined in 2005. Developed from simple records, big data has transformed to be more than just an impotence set of large data which is useful to every stage of an organisation’s value, especially in the human resources department.
Big data refers to a software tool that is able to analyse immense amounts of data across numerous platforms in a short period of time. In the human resources department, big data can help HR leaders better understand the organisation’s human capital, workforce capacity, organisational risk, and business performance.
See also: How Can HR Teams Leverage on Big Data?
In their research, Nocker and Sena revealed that companies tend to adopt new data-driven strategic decision-making models across different business functions because of their enhanced capability to exploit their big data (employee and other organisational-related data). Nocker also mentioned that businesses that use big data to inform their planning and decision-making functions perform better than those which do not.
Big data supports HR functions from its talent analytics. Talent analytics is different from people analytics, as explained by Davenport et al. Talent analytics is deeper in its usage as a suite of methodologies that allow identifying patterns in workforce data to manage a workforce, drive changes, and eventually create value. Enabling talent analytics in the workforce can help HR answer core questions, such as the relationship between training and development, how to retain talents, what program affects employees the most, how productive are employees with the program, and which employees HR should invest in.
Talent analytics quickly absorbs HR’s attention in 2016 with the increment of over 40 percent of organisations rely on the analytics, added Davenport et al. This increasing trend of talent analytics sprung from many factors, including the increments of data itself, the advancement of technology, and the increment use of metrics. That being said, big data does not only affect how HR source and hire their talents, but also helps the organisation thrive from tight talent competition and tight business market competition.
First, be careful when interpreting the data – hire a translator. Roland Corker found that there is only 18 percent of business executives who believes that their big data initiative are effective. Other respondents often fail to interpret the result, making it hard for a corporation to thrive in the global competition. For this very reason, many organisations are employing translators to serve as a liaison between data scientists and decision-makers. As a result, the value of big data initiatives can help organisations achieve their goals.
Second, do not forget the human aspect of big data. Stakeholders are important in the consideration for the big data projects as big data often require new technologies and practices which can only be done by a human. Thus, your big data initiatives should include personnel training which the scope of the project, advised Corker. Doing this can maximise the outcome of your big data projects.