Workforce is the biggest asset of any organization, and HR as a function and as a service provider to the workforce has a tremendous opportunity to drive better business outcomes and help people succeed with data analytics. Enterprise HR software systems have been instrumental in eliminating paper, organizing data and automating manual processes, but have lacked the intelligence beyond ad-hoc reporting and descriptive analytics. With data science and machine learning, HR software systems are evolving into enterprise-wide value creators and intelligent systems that are predictive and prescriptive.
Decision management is the fundamental force driving the need for descriptive, predictive and prescriptive analytics in HR. Data both structured and unstructured, historical and real-time, integrated across disparate systems and transformed into actionable data with statistics and data modeling can provide valuable insights and predict future outcomes. These insights and predictions can be translated into recommendations for decision support, ensuring that critical business decisions are reinforced with patterns and trends in data along with human perceptions and instincts.
Healthcare and Benefits is one such area where HR can gain valuable insight by using advanced data analytics and can optimize critical business decisions, help drive down cost, increase efficiency and ROI, while helping employees make informed healthcare and benefits decisions. As an example of prescriptive analytics, Benefitfocus President and CEO Shawn Jenkins unveiled an interesting insight in his 2013 One Place keynote) – ‘People that have at least two High Deductible Health Plans options presented to them are 88% more likely to select one of those plans than folks that only have one’. This is contrast with the perception that some employers had that users would prefer one plan for simplicity. Actionable data like this can be a valuable tool for HR in designing benefits plan for their employees.
The foundation of predictive analytics is based on probabilities and can offer powerful actionable insight into future outcomes. MIT Sloan Management Review posted an interesting observation in their tweet -
Predictive analytics and decision support offerings from Benefitfocus are also helping healthcare consumers better manage their benefits. Read more here.
HR analytics are evolving and we are barely scratching the surface of the capabilities that can be made available to HR by applying advanced analytics to data. There is a need for solutions that can extract actionable information from huge volumes of data to help HR make evidence-based decisions