How Does Big Data use in Human Resource Management?
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How Does Big
Data use in Human Resource Management?
Big data has arisen
because the gamechanger in every business and organizational department,
particularly the human resources (HR). Developing big data with HR data
analytics can support inform and expand virtually each part of HR, including
recruitment, training, development, performance, and compensation. By using big
data, HR professionals can make cleverer decisions and help an organization
meet its goals more efficiently.
The key innovation of big
data for HRM is that the data is big. Data is a valuable resource for
organizations since delivers information (knowledge) letting the
decision-making becomes a data-based procedure, not intuition or wisdom (Roberts,
2013).
The rise in the usage of
big data and data analytics by businesses has also improved the demand for
professionals with precise profiles (Barnes, 2014 Cited in Garcia-Arroya and
Segovia, 2019).
Big also means data risks
management, due to the struggle to control volume, velocity and diversity data,
and manipulate sensible staff or reputational information (Calvard & Jeske,
2018).
Does HR need
big data?
Big data in HR has made it
likely to gather and evaluate data before, during, and after the hiring process
to assist inform hiring choices and build a more competent workforce.
Big data can give HR
managers the capability to screen and track the productivity of recruitment
efforts to well identify the most efficient plans that attract the perfect
applicants. In this way, big data can rationalize hiring procedures and make it
easier to reduce large pools of applicants to a lesser, more qualified pool.
In addition, it can give
HR departments the prospect to acknowledge employee patterns and trends and
develop plans that are intended to enhance loyalty and reduce turnover. With
big data, HR managers can recognize what's essentially to not only retain top
talent, but to retain it also.
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7 benefits of
big data in HR
1. Recruit the best talent
HR managers can screen through thousands of resumes and narrow down their exploration to the most promising prospects.
2. Prioritize
recruitment channels
Taking advantage of
massive data can disclose which recruitment methods are bringing outcomes and
which of them aren’t quite effective.
3. Detect
employee health and injuries
Big data permits to detect
and appropriately prepare for common well-being issues in their companies. For
instance, it may disclose that employees are frequently sick between December
and March, prompting the hiring of extra temporary staff during this time
period.
4. Improve
training
Big data gives companies
the prospect to calculate how effective a probable training initiative, which
may decrease the danger of coaching programs that cause poor staff retention.
5. Enhance
employee motivation and engagement
Organizations can
recognize and reward top performers. Through data governance solutions, abuses
of policies or standards can be recognized, and quick action can be taken to
resolve these issues.
6. Increase
retention
HR managers can rapidly
figure out what reasons employees to leave and implement programs to rise
retention.
7. Forecast
the future
Companies can sight HR
patterns and trends, and use that information to make forecasts about the
future on HR tactic and avoid matters with hiring, retention, and performance.
Global Context
VINCI, a worldwide leader
in construction with over 185,000 staffs spread across 2,100 companies, uses
big data to advance its HR functions. Through big data, VINCI is able to
effectively accomplish staff data and make staff communications, onboarding,
and firing employment more efficient.
The organization can now
simply adapt to company-wide changes, having an improved understanding of HR,
and progress the overall efficiency of human capital.
(Source: KPMG US, 2020 available at www.youtube.com)
Conclusion
Adopting big data in HRM
largely includes a procedure that must be followed to succeed. For the data to
add value and to be a competitive benefit for HRM and organizations, they must
provide valuable information and knowledge for decision-making and predicting
rationally effective forecasts.
References
Calvard, T. S., & Jeske, D. (2018). Developing human resource data risk management in the age of big data. International Journal of Information Management, 43, 159–164. doi: 10.1016/j.ijinfomgt.2018.07.011 Available at <https://www.pure.ed.ac.uk/ws/portalfiles/portal/70339678/Calvard_Jeske_2018_risk_IJIM_ms.pdf> (Accessed on 14th August 2021)
Garcia-Arroyo, J., and Segovia, A.O. (2019) Big data contributions to human resource management: a systematic review Available at <https://www.researchgate.net/publication/336363935_Big_data_contributions_to_human_resource_management_a_systematic_review> (Accessed on 14th August 2021)
Graham, J.T. (2021) Big Data in HR Available in <https://blog.sage.hr/10-benefits-of-using-hr-big-data-in-human-resources/> (Accessed on 14th August 2021)
Roberts, B. (2013). The benefits of big data. HRMagazine; Alexandria, 59(10), 20–22, 24, 26, 28, 30. Retrieved from <https://search.proquest.com/docview/1445137722? accountid=14609. Available at https://www.shrm.org/hr-today/news/hr-magazine/pages/1013-big-data.aspx> (Accessed on 14th August 2021)
Talend, <https://www.talend.com/resources/big-data-hr-analytics/ 2021> (Accessed on 14th August 2021)
Attractive article with uncommon topic nadun.
ReplyDeleteas you mentioned in the article Big data has emerged as a game-changer in every industry and organizational department, particularly in human resources (HR). Using big data and HR data analytics to inform and improve almost every aspect of human resource management, including recruitment, training, development, performance, and compensation.HR managers can make smarter decisions and help an organization meet its goals more efficiently by utilizing big data.
You have combined all the things with HRM factor.Nice effort
Good topic and article Nadun, Thank you for sharing.
ReplyDeleteYou have very neatly explained how Big data can be utilized in HR and the benefits and agree with you. Big data is a powerful tool that can be used in HR for analysis, forecasting and critical decision making. The technological advancements have helped a great deal to optimize big data to use in better way in HR decisions and practices through ERP systems, E-HRMs, etc.
Very interesting topic Nadun. There are some challenges that big data bring to HR .It is very important to invest in an effective HRIS is critical in our current business environment. After analyzing the information, the challenges of directing the data include storing the information for easy retrieval and sharing it, whilst ensuring privacy. These challenges amount to one conclusion for HR professionals.
ReplyDeleteAs you explained here. With the utilization of big data in performance management, HR professionals can record daily workload, the specific content of the work and the task achievement of each employee, using cloud-based technology to analyze this data.
ReplyDeleteUsing big data with HR data statistics can help inform and improve almost every HR area, including hiring, training, development, performance, and compensation. By using big data, HR managers can make smarter decisions and help the organization achieve its goals more efficiently.
ReplyDeleteAs the world move towards IT, using Big Data for HRM is revolutionary. It save time and more efficient on analysing data, saving data, retrieving data, recruitment, training and all other aspects of HRM.
ReplyDeleteThe minor drawbacks I see here are the low IT knowledge of employees and less human touch in HRM.
In regards to human resource management, people-related data is used to better understand the organization's human capital, workforce capacity, risk, and business performance. HR departments using big data can do their job much more effectively and quicker, too. Big data help you keep everything organized and measured to finish and evaluate.
ReplyDeleteBig data in human resource management refers to the use of multiple data sources to assess and improve practices including recruitment, training and development, performance management, compensation, and overall business performance. It has also attracted the attention of HR professionals who can now analyze data mountains to answer key questions related to employee productivity, the impact of training on business performance, and more. Thankyou for sharing this interesting article Nadun.
ReplyDeleteBig data assists HR firms in motivating people, better understanding them, planning, and resource allocation. Big data can be used to provide a better understanding of existing employee performance, risk, and composition. Data may be used to improve the training of employees, services, and products.
ReplyDeleteNice articlr Nadun , DATA gathering in analysis can help HR teams monitor employee performance and engagement to reduce staff turnover and build a more efficient workforce. Without HR analysis, HR professionals can miss important trends, such as poor managers or a lack of professional development. In this new data driven economy , it is essential to adopt to new technologies to manager human resource is better way
ReplyDeleteIn addition to that while recruiting and online applications may appear to overwhelm human resource departments with the volume of applicant data and applications, the digital age opens the door for big data to make retention and hiring more streamlined and efficient than ever before. Big data, when used correctly, has the potential to be an ideal business solution for solving the problems that HR professionals face, particularly in terms of employee retention and talent acquisition.
ReplyDeleteThank you Nishantha for your additional information added here.
DeleteGood article Nadun,Advantages of Big Data Recruiting The lack of credible data doesn’t have to be a source of frustration for HR recruiters. Specific to the HR industry, big data has been shown to help with real-time prediction of hiring needs, improving the quality and retention of new employees and connecting recruiting performance with business performance.
ReplyDeleteTrendy topic Nadun. Big Data has a multitude of benefits for HR, all of which have evolved over time due to advances in data analytics. There are also several key HR big data trends emerging that can be leveraged to maximum effect. Exceptional talent acquisition and retention are critical to organizational success. In order to hire top performers, improve retention rates, and keep employees happy and engaged, HR departments are using data analytics. This competitive advantage will soon become the new normal as technology for dealing with large sets of employee data advances rapidly.
ReplyDeleteLeveraging big data with HR data analytics can help inform and improve almost every area of HR, including recruitment, training, development, performance. HR and Management can take the maximum from the people-related data to better understand the organization's human capital, workforce capacity, risk, and business performance to design the strategies in the long-run.
ReplyDeleteVery good article Nadun. Leveraging big data with HR data analytics can help inform and improve almost every area of HR, including recruitment, training, development, performance, and compensation. By using big data, HR managers can make smarter decisions and help an organization meet its goals more efficiently.
ReplyDeleteGreat article, Nadun! Using big data alongside HR data analysis can enhance many aspects of HR, such as hiring, training, performance, and pay. With big data, HR managers can make better decisions to help organizations achieve their goals more effectively.
ReplyDelete