Why Should HR Care about Big data?

July 8, 20221:01 pm3579 views
Why Should HR Care about Big data?
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Big data has been around us for quite a while now and many people are leveraging it for their business operations. Developed from simple records, big data has transformed to be more than just an important set of large data which is useful to every stage of a company’s value, especially in the human resources department. So, why should HR care about this?

Big data is a collection of structured, semi-structured, and unstructured data collected by companies to be used in machine learning projects, predictive modeling, and other advanced analytics applications. Big data processing and storage systems, in combination with tools that support big data analytics usage, have become a standard component of knowledge management architectures in companies. It can help HR leaders in better understanding a company’s human capital, workforce capacity, corporate risk, and business performance. 

According to Nocker and Sena’s research, companies tend to adopt new data-driven strategic decision-making models across various business functions as a result of their improved ability to leverage big data (employee and other organizational-related data). Nocker also stated that companies that use big data to guide their strategy and decision-making functions exceed those that do not. 

So, in what ways does big data support HR-related jobs? 


It is always nice to do more with less, reducing recruitment costs by making the hiring process effective and appealing. With the rise of big data in the field of human resources, gathering and analyzing data after, during, and before the hiring process has become relatively simple. As a result, businesses can make better hiring decisions and develop a more efficient workforce. Furthermore, HR can monitor and track the effectiveness of recruitment efforts. This enables HR teams to develop and implement highly efficient recruitment strategies that deliver qualified applicants. 

Read Also: Outsourcing Payroll: Why and What to Anticipate 

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. 

Predictive function

Employees demand benefits as part of their salary package, but many companies are unaware of this. Companies can learn from insurance companies by gathering health information about their employees and prospective candidates in order to provide a good health package or benefit. Transparency is a critical factor in dealing with issues to avoid legal issues associated with personal security, so when you gather data, do it by openly discussing how you guarantee data security and limitations on how you plan to use it.

To make the best out of big data, you can consider hiring an expert. Roland Corker found that there is only 18 percent of business executives who believe that their big data initiatives 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 businesses 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 companies achieve their goals. 

Stakeholders are important in the consideration for the big data projects as big data often requires new technologies and practices which can only be done by a human. Thus, your big data initiatives should include personnel training which is the scope of the project, advised Corker. Doing this can maximize the outcome of your big data projects. 

Big data does not only affect how HR source and hire their talents, but also helps the company thrive from tight talent competition and tight business market competition. It is time to leverage its power to get one step closer to your business goals!

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