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BI Invades HR: How Analytics are Transforming the Hiring Process

Seasoned HR professionals have always been expected to make some instinctual decisions when it comes to hiring and managing employees. However, with the rise of Business Intelligence (BI) software, such practices may be at an end. Now that analytics have entered the comfortable cubicles of HR, there is far less room to make decisions based on hunches or personal opinions.

The future of HR is analytical and, well, more intelligent.

Business intelligence software in Human Resources is reshaping both reporting practices and the hiring process. Instead of simply looking out for “red flags” during the interview process, companies can now use software to identify character traits and behaviors which the interviewee and the company share, resulting in better hiring decisions.

Companies such as People Answers have found that learning from consistent behavioral patterns can drastically reduce the amount of errors made in the recruitment process, and therefore eliminate the snowball effect that occurs when mismatched employees are brought onboard.  And they’re not the only ones who have adopted this practice.

Neiman-Marcus, Gold's Gym, and many other retailers have reported up to a 35 percent increase in employee retention rates, as well as up to 40 percent reduction in the number of early dismissals as a result of using behavioral based systems. 

The idea of BI designed for HR isn’t a new concept. People have tried to use BI to improve analytics and decision-making in recruitment and HR for decades. However, most BI tools have been ineffective for these purposes. This is partially due to the complex, highly technical nature of most past BI solutions. Often it was simply wasn’t worth the time and opportunity-cost for IT to set up and manage such software for the HR department.

What HR professionals needed was an out-of-the-box solution that delivered useful information without requiring additional assistance from the IT staff. Users should be able to decipher the dashboards and charts with ease so that they can quickly find the information they need. Predicting trends, analyzing risks, and identifying future opportunities are all possible results that HR professionals can attain when paired with user-friendly software and a modest amount of training.

Knowing how pertinent information is best received, be it in pre-defined metrics, scorecards, reports or even charts, was another hindrance of BI solutions in the past. Now, many solutions offer advanced users the ability to create their own custom dashboards and visualizations for analyzing trends.

Traditional, people-based, instinctual methods of managing HR processes are quickly becoming a thing of the past. Now that BI software has become user friendly, even the most seasoned HR professionals realize they need to get on board before it’s too late.

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Comment by Anil Bhargava on March 16, 2016 at 11:00pm

Nice article

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