I was initially going to comment on how big data is being implemented in HR systems (datafication and big data of HR), in an article found here. However, the key factor of what big data really is stands out in this article.
The question of what big data really is, has been talked about tremendously, and I am not about to jump on that bandwagon. It is important to identify that big data is not just the accumulation of data from disconnected data sources in a more central, “usable” location. That’s only really a fraction of the story. I’d say that data aggregation is the easy part. Where the real magic comes in how that data is interpreted to make strategic decisions.
There is, however a process in achieving the benefits in what a big data solution offers. In terms of talent management, the big data analytics journey requires that the following steps be taken in order – building the data foundation, training, and reporting:
Reactive, Operational Reporting
- Improve data quality; create a data dictionary
- Develop a 1-3 year plan
- Hire dedicated resources
Proactive, Advanced Reporting
- Implement self-service reporting tools
- Build strong techtnical and consulting skills
- Work on data integration
- Use statistical models to identify the drivers of certain outcomes
- Develop data visualization skills
- Learn to “tell the story” to business leaders
- Reap the full value of talent analytics
As you’ll see in this video, only 15% of HR teams have a strong credibility in metrics and analytics and require a more powerful talent analytics system. But the benefits of following this plan can be seen, in what else?
Organizations that have followed this methodology are:
- 2x more likely to improve recruiting
- 2.5x more likely to improve talent mobility
- 3x more likely to reduce costs
- 2x more likely to improve leadership pipelines
- 30% higher stock returns
You can read more about the article that kicked this off for me here (http://www.forbes.com/sites/joshbersin/2013/10/07/big-data-in-human-resources-a-world-of-haves-and-have-nots/).