Business intelligence is defined as an umbrella term that includes the application, infrastructure, tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance [Gartner].
So what does that really mean?
We can use data to help us make better decisions in business. We have heard BIG DATA mentioned in the corporate world for customers and customer acquisition. But gathering and analyzing data is ideal for talent management as well.
Why is it important to track data for talent management?
One of the largest expenses in business is employee payroll. Companies track expenses and revenue when it comes to customer acquisition. But how are they measuring the impact of employees, talent acquisition, and employee performance? With payroll being one of the largest expenses and the known impact of employee retention and employee performance on the bottom line, it’s important that we track and analyze this data.
Analytics can help with hiring the right talent, preventing turnover, workforce planning and understanding what enables high performance. This is directly relevant to bottom line profits as well as return on investment.
How can we use BI tools for talent management?
First, you have to start by making sure all of your systems are talking. By ‘talking’, you must connect your applicant tracking system (ATS) and performance management system. You need to be able to tie these two together to get a better understanding of the benefits and return on investment. If you are tracking what you are spending time and resources on for recruiting and retention, you need to be able to connect that to the return you get from this.
The steps of BI are: 1. aggregate the data, 2. visualize the data, and 3. analyze the data.
Business Intelligence is being used to help with succession planning (determining what your bench looks like and making adjustments accordingly). BI can help identify the hard and soft skills needed for certain departments or areas and determine if we have that skill set in other areas of the company. BI also helps the CFO, COO, or Director of Operations understand the big picture financial value of the entire workforce.
Imagine if Human Resources was able to show a true ROI for recruiting activities. BI helps drill down the ROI analysis on individuals, teams, areas, roles, etc. BI also allows HR to provide more valuable support to managers, executives, and employees.
Talent management strategies and employee engagement need to be strategically planned and implemented. Similar to how companies use data to ensure a high level of customer engagement and satisfaction, data can be used to hire and retain top talent and encourage higher levels of employee engagement and performance.
Would you like to see how you can use data analytics with your talent management team and tasks? Schedule a consultation!