5 Ways Big Data Can Help You Make Better HR Decisions
We’ve all heard the term “big data” and how analyzing it can be vital to making better business decisions. So how do you access your company’s big data, especially related to HR and payroll functions? We all want to make strategic business decisions; however, it can be challenging and even overwhelming to harness the right analytics. This is even more difficult if you aren’t using a platform that unifies HR and payroll data.
In this article, we’ll talk about what big data is and why advanced analytics are important in today’s workforce. We’ll also discuss five ways big data can optimize HR and payroll decisions for your organization.
What is Big Data?
Big data describes the process of analyzing extremely large data sets to reveal trends, patterns, and associations. Big data can be traced back to the late 1800s. Sir Henry Furnese, a successful banker, used traditional data to make strategic business decisions. This valuable data ultimately gave him a competitive advantage in the banking industry.
Data science progressed again when Henry Ford used analytical data to make improvements to his assembly line. The result was a revolution to the manufacturing industry worldwide; and, the phrase, “business analytics” was born.
Over time, business analytics grew from manual tracking to the launch of robust computer servers. Computers launched a new era, by monitoring historical data to dictate future business trends. Thanks to cloud-based management systems, the volume and types of data that organizations can access are exponential and steadily increasing.
What are the Benefits of 21st Century Workforce Analytics?
The widespread use of machine learning coupled with artificial intelligence (AI) has been referred to as the 21st Century Industrial Revolution. The largest factor that separates today’s big data technology from data of the past, is time. The duration it takes to get data-driven results today is a fraction of what it used to be.
Previously, businesses gathered information manually, studied that information, and made decisions based on their findings. Now, relevant data is generated through software and artificial intelligence platforms that easily predict trends for years to come. In the modern era, businesses can easily gather volumes of data and project future business insights. This readily available and instant access to big data offers businesses a huge competitive advantage.
Leveraging Big Data in Your Business Decisions
There are several ways in which your business can utilize big data to reach strategic goals and grow your business. Our CRO, Christian Valiulis, recently spoke in Forbes about how our business development and sales team utilize data analytics to help with client prospecting.
Christian Valiulis
Why CFOs Need More efficient reporting
How Does Big Data Apply to Payroll and HR
Big data analytics plays a vital role in business development and sales team initiatives. Therefore, It makes sense that big data also impacts payroll and HR functions.
HR managers can use people analytics to gain insight into their human resource processes. These insights can help improve areas like employee performance, employee retention, organizational culture, and leadership performance. In a recent study by Forbes, businesses with the most people analytics performed 30% better than their other S&P 500 counterparts.
Similarly, when you track trends in payroll data over time, your finance department can tie compensation to employee performance. When you have your payroll functions and HR data together in one platform, you can offer future employees more appealing jobs.
5 Ways Big Data Impacts Payroll and HR
In order to harness the power of big data, HR professionals, CFOs, and payroll managers need a unified data source. Single-system platforms house all your HR and payroll data so it’s easier to analyze. Access to a complete data history allows you to identify areas of the employee lifecycle that you need to focus on. Prioritizing problem areas leads to greater retention and return on investment.
Access to tools like analytical dashboards allows you to easily view HR and payroll reporting in one place. That way you can quickly identify trends, anticipate future needs, and make more informed business decisions.
Here are a five ways you can use big data to impact payroll and HR decisions:
Sources
About Forbes Business Development Council:
Forbes Business Development Council is an invitation-only organization for senior-level sales and business development executives. Find out if you qualify.
About Christian Valiulis
Chief Revenue Officer Christian Valiulis at APS is a member of the Forbes Business Development Council. As a national workforce management and full-service payroll processing company, APS delivers a unified cloud solution backed by guaranteed payroll tax compliance services. Christian oversees marketing and sales, channel partnerships, and strategic product and service alliances. Connect with him on LinkedIn to stay up-to-date with his most recent publications.
