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Big Data for Human Resources - Can it really make a difference? - From eQuest's Floating Point Blog
1. Big Data for HR – Can it Really Make a Big Difference?
by DAVID BERNSTEIN on NOVEMBER 19, 2012
Industry insight and analysis suggests that, when it comes to Big Data, HR is at a crossroads, where
leaders realize informed decision-making is critical to increasing their strategic value, but they struggle
with getting started. I couldn’t agree more—and have even suggested the same in a previous post on HR
organizations feeling overwhelmed by Big Data.
Yet, a few events and articles all converged these past few weeks that shine the light on the value of Big
Data and analytics— the insights and the results that can be achieved from this work. HR needs to act
swiftly to take advantage of this golden opportunity.
Let’s review what’s been happening. I’ll start with my recent webinar, titled “Big Data for HR – Using
Predictive Analytics for Faster, More Accurate Talent Acquisition.” This program was developed in
response to the fact that many HR professionals are hungry to learn more about Big Data. For many HR
leaders, Big Data is a buzz phrase and mysterious black box. It’s impossible to derive value from a new
technology if you don’t understand what it is and how it can be applied. I explained how a successful
talent acquisition sourcing strategy can be predicted, planned, and executed successfully with Big Data.
By leveraging the insights of Big Data, HR organizations are equipped to make better-informed, and more
strategic decisions about their recruiting marketing efforts, and therefore produce greater results for their
companies.
With such insights in mind, consider how Big Data influenced the presidential election. Being the Big
Data junkie that I am, I was intrigued by the Harvard Business Review blog post (“Electing a President in
a Microtargeted World”) discussing how both presidential candidates leveraged vast amounts of
information to better understand voters and their behaviors. The point was “to figure out which
2. persuadable voters to spend energy—and dollars—on, in the hope of moving the dial just slightly in their
favor. It’s a world where hundredths of a percentage point matter.”
How powerful: multi-million dollar campaigns using predictive analytics for better targeting and
decision-making that will ultimately impact an entire nation—and world. Utilizing data and deriving
insights to impact critical outcomes is certainly a lesson HR can benefit from. The power of Big Data for
HR and microtargeting should not be lost on talent acquisition leaders as well.
If that weren’t enough to remind you that the Big Data for HR opportunity is real, consider what HR
research analyst Josh Bersinrecently said at the HR Tech Europe conference. Bersin is quoted as saying,
“Data analytics has the potential to help businesses make dramatic returns by managing their workforce
more effectively. This is the next big thing that is going to happen in HR.”
Bersin cited how one insurance company changed its entire hiring strategy because data analytics showed
something completely different than what its HR leaders previously believed. As a result, the company
significantly increased profits. Bersin advised HR departments to set up small teams to develop data
analytics as a discipline within their own organizations.
This brings me back to the crossroads. I believe that most HR leaders recognize the power Big Data can
bring to their organizations. However, the challenge is knowing how and where to begin. Building
infrastructure, developing processes, and growing analytic competencies are not outcomes that can be
achieved over night. Infrastructure and process aside, a recent survey conducted by the MIT Sloan
Management Review (“Analytics – the New Path to Value“) – concluded that the biggest barriers to
successful utilization of analytical data were the “lack of understanding of how to use analytics to
improve the business” and the “lack of management bandwidth.”
To effectively leverage Big Data, HR organizations must seek ways to apply the insights gleaned from the
analytics, recognizing that the shortage of skilled talent to perform such analysis is often the constraint.
From a talent acquisition standpoint, the value of Big Data is in the ability to make more accurate talent-
oriented decisions and to take action faster. With Big Data, HR leaders now have the power to infuse
critical decision-making with insights not previously attainable. Getting to desired results faster creates
competitive advantage. In fact, companies that use data-directed decision-making enjoy a 5-6% boost in
productivity, according to Bersin.com.
eQuest understands this imperative and is providing our customers the opportunity to experience the
power of Big Data insights without having to first create a Big Data infrastructure.
If you are unsure if Big Data can make a difference, just ask Obama.
I look forward to your comments!