Creating Value through HR Analytics
Today, the business environment is more dynamic than ever. In this often volatile environment, human capital is arguably the most sustainable source of competitive differentiation and value creation. Clearly, therefore, the role of HR is more central than ever in terms of helping business tap this human capital potential and align it with business strategy. However, to do this, HR will need to utilize tools and resources to get real insights into its human capital behavior, recognize opportunities, and perceive challenges.
It calls for a decision-making approach based on facts and numbers rather than intuition and guess work. Within this context, the application of analytics in the HR realm is becoming increasingly important. Outsourcing is emerging as a viable option to harness analytics, but, it calls for a careful and pragmatic approach.
This Everest Group report examines the role of analytics in HR and identifies the ways to capture its value within an outsourcing construct. It addresses the following key questions:
- What is the need for analytics in HR?
- What are the building blocks of analytics and how do they need to interplay to achieve desired level of outcome?
- How should organizations approach HR analytics from a scope and sourcing perspective?
- What are the key challenges in HR analytics adoption and why outsourcing / third-party services are emerging as a viable option to address those?
- How can organizations capture the required value through outsourcing / third-party analytics arrangement?