Big data is the key to strategic HR decisions

Human Resource   |   
Published August 16, 2017   |   

Human resources play the key role in company development. However, this profession is not only about interviews and resumes anymore. In a world filled with all sorts of information, HR teams are finding new ways to improve their results and efficiency.

This is possible mostly due to big data analytics, an industry that is going to generate more than $200 billion of revenues in 2020. But what’s the secret here and how come data is so crucial for strategic HR decisions? Keep reading to find out more about it.

Influence of big data on HR

Recent surveys proved that businesses with mature people analytics achieve 30% better results. Ernestine Cawley, a talent acquisition specialist at Careers Booster, recently noted: “Data analytics changed the way that HR managers create and execute plans. Today, this profession doesn’t rely solely on intuition and instinct but finds new solutions in facts and evidence that come out of big data analysis.”
Let’s take a look now at all areas influenced by this great power of data analytics:

  • Talent acquisition

Talent acquisition is the most important element of HR business. However, many companies are still struggling to find the best candidates as more than one-fifth of new hires leave their jobs within 45 days of being hired due to poor performance or temperament issues. New data models significantly reduce this problem with the comprehensive analysis on applicants’ background, education, early performances, etc.

  • Performance boost

Data analytics gives a valuable input on employees’ performance and the overall results. Analysts are able to detect areas which require more attention, additional workforce, or better efforts from the existing staff members. Such analysis starts from general conclusions on company results, over specific units, all the way to individual achievements.

  • Higher retention rates

Almost 60% of organizations consider employee retention a big problem. Employees often feel neglected, dissatisfied, or underachieved, which is why HR managers need to react promptly and solve the problem. Contemporary analytical tools enable companies to notice these problems on time and make moves to preserve good employees.

  • More diversity

In a globalized world, many companies are trying to expand their businesses and form local teams all around the globe. This creates the need for a more diversified workforce that is able to operate under the same corporate climate. Data analytics is great at solving such riddles and it can give excellent suggestions to help you strengthen your team when this kind of support is needed the most.

  • Better financial results

Total costs of the workforce can go up to 70% of company’s operating expenses, meaning that HR management is absolutely essential for the overall financial results of the organization. Big data enables companies to recognize the weak spots, improve productivity, or eliminate obstacles, thus leading to higher revenues.

  • The definition of KPIs

Traditional HR was usually not so good at setting precise key performance indicators (KPI) and monitoring results individually in all of the targeted areas. On the other side, data analytics is making this process much easier, faster, and more comprehensive. It sets concrete objectives on all organizational levels and tracks results in real-time rhythm.

  • Training evaluation

Companies often organize seminars, training sessions, and learning programs to improve the knowledge and skills of their workers. However, they are not really sure about the outcome. With the new form of business intelligence, it is also possible to estimate the value of training and its purpose in general.

  • Strategic planning

As much as it is important for HR teams to produce good results on a daily basis, it is also necessary to make strategic plans for the future. Big data allows them to predict the forthcoming trends and prepare entire organizations for further business moves.


Big data analytics is changing the way companies do their businesses nowadays. It improves all aspects of the work, including human resources. With new technological solutions, it is possible to measure, evaluate, and predict business results. We made an overview of 8 areas in which data affect strategic HR decisions – don’t hesitate to make comments and give us your opinion about it.