Once upon a time the Human Resources role had little to do with numbers, data, and analytics. The numbers used to be in the purview of the organizational finance function. Data analysis, in its early stages, may have been linked to finance, but was usually found in the Information Technology department. The Human Resources (HR) function was associated with making sure people entered and exited the organization based on the needs of other business units. As these other functions were presumed to have control over numbers and data, the HR role was not seen the active driver for organizational strategy.
This story has changed.
According to a recent global research project comparing past and present use of data and analytics in organizations, HR is now the ‘most analytics function in business.’
As noted in the results, HR respondents outpace those from the finance areas in the use of artificial intelligence, predictive, and prescriptive analytics. These areas are used to track, monitor, and forecast key HR strategic planning elements such as supply and demand for human capital, succession planning, change management, downsizing, and restructuring. All of these are the elements of our studies and provide the focus for the strategic role of HR within any organization.
The tools provided through the use of artificial intelligence, including predictive and prescriptive analytics, are rightly placed in the realm of the HR function. Through the use of analytics, HR is both the transformational agent for, and the storyteller of, the strategic organizational plan. It is HR’s role to collect and control data, translate that data into information and use that information to shape and tell the organizational story.
That story is the tale of where the organization was, where it is and where it is going, as told through the power of analytics and HR.
- How does predictive analytics link to the forecasting of HR supply and demand?
- Why is it important for the HR and the Finance function to work collaboratively when analyzing workforce data?
- How can HR use predictive analytics to shape a pro-active succession planning model?
- What is the difference in predictive and prescriptive analytics? How can each be used for HR planning?