This article was updated on August 3, 2018.
Talent analytics has entered the scene and is diversifying and enhancing HR leaders' ability to benchmark. Employers can now sift through real-time data to identify how their company is succeeding in recruitment and where they may be lagging behind. This type of information, across all industries, is unrivaled in the advantage it gives HR leaders when creating compensatory packages designed to attract top candidates.
As HR is evolving and becoming more data-driven, this depth of information sheds light on a whole new avenue for organizations, allowing them to make informed talent decisions, predict performance and conduct advanced workforce planning. Although benchmarking with analytics is exciting and revolutionary, many organizations still lag behind in its use, and those that do use it may not be fully maximizing the potential of its benefits.
New Technology Brings More Concise Data
Cloud-based, big data platforms that function as an intelligence engine for human capital management are rising as the new standard in talent recruitment. These new HR technologies both analyze and categorize a wide variety of data streams.
Management teams can use this information to quickly discern contextual insights they could never have found before, such as who is most likely to leave based on commuting distance or compensation, all relative to the benchmarking data. The insights gleaned can also lead to areas that need improvement, such as where compensation and benefits packages are lacking and could be adjusted.
The sheer volume of information that talent analytics provides can seem overwhelming, so optimizing functionality will be pivotal to your benchmarking process. You'll need to go beyond the big picture data analysis by taking advantage of features such as predictive talent analytics, behavior analytics and web scraping, to build your talent management pipeline.
These features grant you the power to understand and forecast where talent can be tapped, how talent will eventually move within your organization and who will leave (and when). You can even examine data which employees will potentially work the hardest or who will assimilate effectively into your organizational culture.
From this data you will have the power to calculate comparisons to competitors in terms of salary, benefits, as well as expectations in other areas, businesses, industries and regions. It's this depth of information that will provide you an opportunity to leapfrog your competition where talent acquisition and retention are concerned.
Analytics Is the Future, and the Future Is Now
Organizations understand that analytics will drive benchmarking in their respective industries, but these same organizations may feel unsure and unprepared to embrace this change. These problems stem not only from apprehension about new technology, but also how to assess and analyze this data to its utmost potential.
Because of these perceived difficulties, it's often necessary to enlist the expertise of those well versed in the use of data and qualified to simplify the technical aspects that come with new technology.